Just found out about this ICO and I've read the posted stuff.
Let me know if I get the following right:
- populous is basically in the factoring business
- blockchain is used to facilitate the flow of business and funds via internal Pokens
- ICO investors get PPT coins and no Pokens
Now the key questions are:
- How will PPT holders benefit from the growth of the business ?
- Will there be any dividend of share ownership deal with the company ?
- Will PPT be traded on exchanges ?
I support all initiatives for implementing blockchain in the financial world but I want to understand the dynamics of the coin before investing.
I second these questions. It wasn't entirely clear to me reading the whitepaper what the value of PPT coins are. Is it a percentage of all fees that are charged? Please elaborate on the economics of the token. If the platform grows, how do PPT holders benefit?
Hi, So the percentage of profit to ICO PPT holders will be based on the overall PPT sold during the ICO. The profit is divided equally amongst all PPT, regardless if the PPT holder had acquired his/her holdings during the ICO or at a later date. PPT holders should also benefit from speculation of PPT.
Hey - this is still a bit unclear.
1. What are the sources of profit for the PPT holders? Is it transaction fees for secondary trades, or do they make money in the primary market by assuming risk? Are the transaction fees or profits to PPT holders on both origination of a sale, and for secondary sale?
2. How are the profits returned to the PPT holders? Do you have a dividend or buyback? Are there details available on how profits will be shared? e.g. paid out in ETH every month or something along those lines.
3. I still don't fully understand the utility of doing this on a public blockchain. Seems like a convoluted way of pokens->fiat when it should just be possible for the parties to do this through a centralized exchange, since the money transfer is centralized anyway. What does doing this on Ethereum grant you?
Hi, I will try and make the answers as clear as possible.
1. a)The sources of profit are from the commission charged to borrowers and investors who trade invoices on the platform. Not from trading of
investors funds collected from the ICO.
b) There will be an 0.5% charge to external users who wish to exchange Pokens for fiat currencies via Populous.
We will by no means use funds invested from the ICO to trade invoices internally.
2. Profits are returned to investors in a way of repurchasing tokens and burning them, overall reducing the number of outstanding tokens in
circulation. At some later date we will introduce other methods of distribution of profit for token holders.
3. The benefits of doing on the blockchain are:
a) Cost- Overall reduction in cost associated with invoice finance and passing that on to both borrowers and investors.
b) Efficiency - The whole process is automated to an extent i.e our smart contract auction/crowd-funding process. Which impacts the speeding up
and processing of payments.
c) Barriers to entry - Using the blockchain allows for example: An investor from India with bitcoin or ether to trade invoices with
someone from Denmark. This also allows investor to keep their anonymity which is one of the fundamental reason of building the platform on
the blockchain.
d) It is the choice of the Poken holder where they want to exchange their Pokens for fiat or any other crypto currency. The can do it with Populous
or use any exchange of their choosing. We are not an exchange or try to be.
We are not an exchange but an invoice platform but we are obliged to offer a service for borrowers and investors to convert Pokens back to
fiat in their local currency.
e) Transparency - Some investors or borrowers may want to prove actual events occurred.
f) Duplicate invoicing fraud. By maintaining public ledger of asset transactions, this enables others in the industry not to refinance invoices that have currently being financed on the Populous platform
4. In the near future we see Pokens being used for other various eCommerce and financial use cases and not just invoice trading. Currently at the
moment I see a major use case for pegged tokens as an crypto token that offsets the volatility associated with other non pegged crypto tokens
hence why we are able to create an invoice finance market place on the blockchain, but this can be extended to other types of short term property
financing deals.
Thanks for these detailed answer, appreciate them.
So am I understanding this right that there are two primary sources of income for the project -
A. Commission charged to borrowers and lenders on the platform (how much is the %)?
B. Conversion of Pokens to fiat - 0.5%
So does this mean you'll use all the revenues to purchase back and burn PPTs? Will you keep anything for operations and other expenses, or is this going to come from ICO funds? How frequent will be the buybacks? Are the revenues audit-able by the PPT holders?
