RE: Populous – A Plate of PPT With Plenty Of Secret Sauce
All sounds great for those of us who got into the ICO. But what our little community continues to miss/avoid is the question: where's the value for those who are discovering PPT now. If you're going to buy to speculate on PPT price that's one thing. But buying PPT as a vehicle to participate in factoring? I'm still failing to see the pull. This is what worries me. I got in at ICO. These projections are based on the market valuing PPT AFTER the ICO not before it. What's critical then is ensuring there are benefits to holding the token post launch such that PPT maintains a market value driven by new participants who seek its unique utility - post launch of the platform I see no unique utility. Unless you think the buybacks are going to take care of demand? What Populous aught to have done is tie the PPT token into the invoicing process such that it is a requirement and not an option.
Do the same experiment as above for someone buying in now and the % gap between PPT vs. Fiat soon falls away.
I hope I'm wrong.
Remember Populous only raised $10.5 million in the pre-ICO. This is pittance compared to what is required to funds the invoices expected. In my opinion, the funds raised are used to setup the team, offices, equipment etc. and most importantly to be able to buy trade insurance. Without trade insurance the project cannot get off the ground.
Therefore the money for funding invoices will come from elsewhere and only Populous will know where and fiat investors will be required. If the price of PPT on the exchange is $100, it does not benefit Populous because the money changing have is between the seller and the buyer with the exchange taking a small commission, Populous does not receive anything from this transaction because this money does not go into the liquidity pool. So making PPT a requirement to invest in Populous will not work because there is no liquidity as a result of the price going up.
Populous will still survive even if PPT goes to $0 because the liquidity pool is what is important. As the liquidity pool increases then PPT will also go up relative to it.
You are right, the percentage gap will fall away as the price of PPT increases in value. With the lower prices now compared to what they may be will still give you an advantage as opposed to those who just invest in fiat. Buy PPT at low prices then compound your Pokens.
PPT will always give you the edge over fiat but as time goes by the edge i think will be due to buy back/burn each year. So your allowable investment will increase by (say) 10% each year as compared to fiat investor who do not benefit from the yearly increase.
Investor who hold PPT and not use the platform will hold PPT for yearly price appreciation through buy back/burn. If you want to trade PPT then I think it will be difficult to make money because by then no-one will want to sell when they realise the money they are making on the platform.
So it is a good time to buy PPT when the price is low compared to where the price may be after the beta. Fingers crossed that beta will be a hit. Would want to invest in fiat when as a PPT holder you get just that bit more even if you buy PPT after the pre-ICO and the price has gone way up.