Populous Platform - Putting A Fundamental Price Target on itsteemCreated with Sketch.

in #crypto7 years ago (edited)

Invoice factoring is a 3 trillion dollar per year industry ....... if Populous gets 1% of the overall market share. We'll use 1%........ nice easy round number.

Factoring companies typically calculate rates using a variable fee structure. With variable fees, they discount a small percentage (1 to 3 percent) of the invoice for as long as the invoice goes unpaid. So, the longer your customer takes to pay, the more you’ll pay in fees. A factoring company may charge 2% for the first 30 days and 0.5% for every 10 days that the invoice remains unpaid. Fees are often referred to as invoice discounting rates.

Some factoring companies offer a flat fee structure where a one-time fee is charged up front. With a flat fee structure, the fee remains the same no matter how long the invoice remains open. This type of rate structure is common in the trucking industry. Depending on your industry, one or both of these options may be available and can help you control your costs.

So let's just do some simple math using 1% market share, the numbers are round and not to mention the future probably won't even come close to the ideas below.

......... but it's fun to throw some numbers around.

3,000,000,000,000 * .01 = 30,000,000,000 / 50,000,000 = 600

  • each token doing $600 dollars per year in lending business.
  • 600 / 12 = $50 per month
  • $50 * .02 = $1.00 per month per token or $12 dollars per year

Reinvesting the token at 2% return per month.

50 1.02 51
51 1.02 52.02
52.02 1.02 53.0604
53.06 1.02 54.1212
54.12 1.02 55.2024
55.2 1.02 56.304
56.3 1.02 57.426
57.42 1.02 58.5684
58.56 1.02 59.7312
59.73 1.02 60.9246
60.92 1.02 62.1384
62.13 1.02 63.3726
63.37 1.02 64.6374
64.63 - 51 = .............$13.63 per token compounded per year.

But let's say you want to use the return on capital as money to blow......

So if your annual return is $12 per token...... What's the token worth?

I guess it depends on the risk. The average return over the millennia has been 7%... good place to start.

Real Estate......... 10% is always a nice number to shoot for.

Blue chips.... the Dow 30 SPDR Dow Jones Industrial Average ETF Historical Dividend Yield (TTM) Data...... 2%

Junk bonds, high yield (high Risk) debt...... 6%

In theory a return of:

  • 10% would make the token worth $120.00
  • 7% would make the token worth $171.00
  • 6% would make the token worth $200.00
  • 2% would make the token worth $600.00

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