Populous – My Take on the PPT Price
Yesterday The Marketing Eye officially announced on behalf of Populous the formal agreement of a $1 Billion invoice deal with Luxure Global Citizen. This is equivalent to GBP3,000,000 per day of invoices on the Populous Invoice Factoring Platform.
You can read the announcement here.
Amazing Achievements to Date
The deal is a very big achievement for Populous considering that they only pre-ICO less than 2 month ago. The PPT tokens was sold out in their pre-ICO on 24 June 2017 raising $10.5million and as a result Populous was not able to hold an ICO event. I think they did not expect this to happen.
The PPT tokens were available at the pre-ICO at a rate of 0.0011ETH per token (excluding bonuses), which was approximately $0.37 at the time. At the time of posting, the tokens are going for 0.01035ETH ($4.15) on EtherDelta. At one point after the pre-ICO the tokens reached a high of around 0.02ETH ($8.80) but has since settled at a lower price.
For those of you who got into the pre-ICO sale, I say congratulations to you because you are now sitting on an explosive gain of 1122% gain in dollar terms just by holding tight and doing nothing.
What Is the PPT Price?
Now back to the official announcement that was made yesterday. For the price going forward the announcement is a very big deal although it does not look like it due to the suppressed prices on EtherDelta. I hazard a guess that once the Populous Platform “golive” the price will really start moving up.
Below is just a conjecture on my part and I am not predicting anything like “da moon”. Below is my take on where I see PPT price when it goes live and based on the recent deal with Luxure Global Citizen.
I have assumed the market value for the first three month of GBP273,750,000 based on potential invoices available of approximately GBP3,000,000/day for 91 days. However invoices will go on line gradually and not all at once.
The time frame of 3 months is assumed to allow investments for durations of 30 days, 60 days and 90 days.
The number of PPT available is based on Populous' breakdown of the PPT allocation with a total of 53,200,000 PPT.
In this price prediction, I have assumed that the total number of PPT in circulation is the number of PPT that will be utilized on the Populous Invoice Factoring Platform.
In reality this will not be the case as some will traded on exchanges and some will be lost. Nevertheless, I expect a very high proportion to be used on the platform because of the potential returns that can be achieved on the Platform.
Since PPT are held as collateral by Populous, the price fluctuation of the value of PPT on the market does not bode well for the stability of the PPT collateral value. If the price drops then the PPT held as collateral by Populous will be “underwater” or worth less than when the investment was first made, a risk that need to be countered!
Some control is required to minimise the risk of the PPT collateral going underwater and as I understand, Populous will have an “Oracle” that will monitor the price volatility of PPT on the market and will adjust PPT/Poken conversion rate accordingly. A discounted PPT value will be used as collateral.
So 1000 PPT at market value of $10 each will not be worth $10,000 but in the above case will be discounted to $8,000. This allows the price to fall by 20% without it affecting the collateral worth held by Populous.
In my humble opinion, I do not see substantial price falls because holders will be holding tight and investing on the platform. There will always be a larger demand for PPT than sellers because of the potential of PPT investment returns. There will be very little selling pressure that can significantly affect the PPT collateral value.
There are other ways that Populous will use to mitigate this risk, which is over my pay scale to know, but as an entity playing in the financial space I am sure that Populous will have this covered. Populous maybe the first invoice factoring finance company on the blockchain but they are not the first invoice factoring finance company in the financial sector.
Since the Populous platform is based on the use of Pokens which are pegged 1:1 to the fiat currency, the number of Pokens required is therefore the same as the market value. Thus 273,750,000 Pokens are required to cover GBP273,750,000 value of invoices.
The value of PPT can be higher because the assumption is that the maximum number in circulation will be used in Invoice factoring Financing but in reality this will be less.
A simple calculation can thus be made to estimate the approximate PPT market value. Based on the Luxure Global Citizen deal and my basis assumptions made above, PPT value should be around GB9.51 or USD$12.36 after the 3rd month of the Populous Platform going live.
this estimation will increase as more and more deals are struck to sell invoices on Populous.
In Conclusion
The PPT value is linked to the availability of invoices available for financing on the platform. If the PPT value is too high compared to the available number of invoices to be financed, the business model will not work because then there is too much capital chasing too few investment opportunities. However that is not to say it is not possible because the conversion of PPT to Pokens can be adjusted to suit.
As more and more deals are struck and the number of invoices available for investing grow by the day, the value of PPT will need also need to grow to meet the investment needs.
If you are looking for PPT to further explode in price then PPT is not for you. However, if you are looking for a token that can potentially generate monthly returns then you are looking in the right place. If you love passive income then PPT is definitely for you.
The Populous Platform will also be opened to fiat and other crypto investors so the above calculation does not take this into account. Obviously there are trillions of dollars sloshing around out there looking for to earn yield and being a PPT holder will give you that provided you have bought PPT at a low price compared to where it potentially may go.
This will be my next subject to explore, a comparison of PPT investor and fiat Investor on the Populous Platform.
What do you think of my attempt to predict the price of PPT. Do you concur or have another theory?
Great post Marcus! I agree with all the points you made. Passive income using the Populous platform and the utility it brings to invoice sellers is bringing REAL value to the platform. As long as the value is there the money will follow.
Hi @moxi, I made another Populous post, again if interested take a look. https://steemit.com/populous/@marcusxman/populous-a-plate-of-ppt-with-plenty-of-secret-sauce
Thank you @marcusxman for pointing out this project. I am in constant search for projects with real value. I am looking into it now, and I like it. I have not finished reading your article, but I will.
For now, I have some questions, and I would appreciate it if you could help me with them.
1- I have stumbled on an article by Populous CEO, where he says:
So, he is clearly saying that Populous tokens are designed to be stable. Doesn't that mean that an investor should expect a high ROI in terms of the price of Pokens?
2- In their website, you can find that they only have one developer!! Is it possible to do such a project with one dev ?!
Hi @sadeki I will try my best to answer to the best of my knowledge.
At the moment Pokens are only used inside the platform as a form of currency and is pegged 1:1 with fiat so it will not fluctuate in value. If you buy 1 poken for GBP1 it will alway be worth GBP1. You can use fiat to buy the Pokens or you can use PPT. PPT are used as collateral by Populous, so if the market price of PPT is GBP10, then you can buy 10 Pokens with 1 PPT i.e. you have GBP10 to invest with. Pokens are used to buy invoices on the Populous platform and you make a return when buying the invoices. The interest are paid to you in Pokens which you can use to reinvest on Populous or cash out into fiat.
The Populous tokens can go and down in price depending on market demand. Only the Pokens are stable in price.
I do not really know how many developers they have on their team, the website will not list every single person but their key personnel.
I made a second post today on PPT and you should also take a look at that too.s every single person, just the key personnel
Oh! Now I get it. So they have two coins: one that fluctuates in price and the other is fixed.
I understand the use for pokens, but I don't get the need for the other one.
Hi @sadekj, I have more interesting posts on Populous with my interpretation if you are interested. Check out my bogs.
Thank you. I will check it soon.
The PPT tokens can be traded on the exchanges like all token but can also be used in the platform as collateral for investing. My second post will give you give more explanation. https://steemit.com/populous/@marcusxman/populous-a-plate-of-ppt-with-plenty-of-secret-sauce
how about that price ay.
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meep
Very nice.
I think PPT is quite unlike the other tokens out there in that there is real use. Worth looking at!
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I'm all about passive income and I appreciate the review and will have to look at the video that you linked to in one of the comments that you left for me. Thanks
Hi @mrwalt I made another Populous post that should pique your interest. https://steemit.com/populous/@marcusxman/populous-a-plate-of-ppt-with-plenty-of-secret-sauce
I will definitely check it out. Thank you for posting this link.
Hi @mrwalt check this post out https://steemit.com/populous/@marcusxman/populous-using-someone-else-s-money-to-make-money
I have made the decision that I will most likely shift some funds around and take a position in the Populous platform as I know that you have been an advocate of this platform from the beginning. I will take a look at your latest post as I like the insight that you provide.
Hi @mrwalt yes I am very bullish about Populous and have done a lot of research as I pick up information. In my mind, the ICO is just a way to raise money to get a foot in the door in the invoice factoring business. The "real" investors are those who are now just coming on board as I note per my latest post. I am writing additional post with my opinion stay tuned.
Well you have definitely got my attention on how much you talk about this token that I'm starting to actually warm up to a lot more.
Hi @mrwalt, check out my latest post. https://steemit.com/populous/@marcusxman/populous-what-are-my-risks-if-i-was-to-invest-on-populous
I will definitely check it out as I can tell from the title it will be a very interesting read that will answer a lot of questions that most people that are considering PPT have.
Hi @mrwalt another for your consideration https://steemit.com/populous/@marcusxman/populous-what-to-expect-when-investing-on-populous