Actually, the company that created the project is a legit software accounting company with many years of experiences, so yeah, they have all the competencies for a project like this, they know the market and know what it needs to be improved.
Sure, I believe the company is legitimate too. No doubt, there is no issue of scam. But this is not my point.
Every transaction involves risk, and a mechanism needs to be in place to significantly reduce, if not eliminate, such risk.
So far I really don't see any mechanism in place to deal with such risk.
Like I said before, it means nothing to do risk scoring and/or KYC on the SMEs selling the invoice, because they are
not the weakest link.
PayPie is basically just trying to indirectly monetize its SlickPie customer base through blockchain.
Everything else is hype.
No doubt its customer base may grow.
But the issue here is the quality of the invoices that will be traded at PayPie market/platform/exchange.
How will PayPie try to prevent and/or recover any default?Sure all transaction has risks, but if no mechanism is in place to reduce the risk, then you can bet things will 100% go out of control.
I say it again, risk scoring and/or KYC on the SMEs are irrelevant.
Edit:
The kind of competency I meant relates to legal competency, not accounting software competency.
Edit #2:
Waiting for the SMEs' invoices to default (and cause token holders to lose money) before we know who to stay away from, is a very bad approach.
If 1000 of SlickPie's customers unknowingly submit $100,000 worth of invoices to sell that will end up default, that translates to $100 million of loss.
And without any mechanism in place to enforce the quality of invoices to sell, SMEs (regardless of their credit scores) will naturally try to sell the ones with lowest chance of recovery.
And the worse part of PayPie's mechanism is that such junk invoices will actually be sold based on bidding process (!) as if the bidders would know any better.
Edit #3:
What makes Populous stands out is that there is no transfer of ownership of the invoices (unlike PayPie) and so the SME will still have obligation to do the recovery for the buyers.
And Populous shifts the weakest link from the entity-debtor to the SME-seller, put a risk scoring on it based on the proven Altman Z-score metric with insurance, guarantee, and/or debenture for safety.
No doubt Populous will have a much harder time trying to penetrate larger market share with such strict requirement, but rest assured most (if not all) invoices that will be traded at Populous will be high-quality stuffs.
