RE: Populous – What Are My Risks If I Was To Invest On Populous?

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RE: Populous – What Are My Risks If I Was To Invest On Populous?

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sadekj (58)in #populous • 7 years ago

Thank you @marcusxman. Populous seems to be interesting.
I still have some questions about the project:

1- If I decide to invest money in Populous, then will I be financing a specific borrower? or will I be investing in a common pool, and populous people will choose the borrower?

2- If I am the investor, then I am lending money, right? Then why do I have to pay a collateral?

3- Is there any reason why the PPT tokens should rise in value? Suppose I did not want to invest inside the Populous platform, would it be a good idea for me to buy PPTs and hold them?

7 years ago in #populous by sadekj (58)

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marcusxman (53) 7 years ago

Hi @sadekj

You will become a "lender" and you can choose who you want to lend money to. You can invest in a invoice by yourself if you have sufficient funds or to invest in a pool. Populous is essentially a market place when there are invoice sellers and you the buyer so you can choose who to lend to. It is a bidding process so the first one/pool to reach the lending amount ge ts to lend to that seller.
Your PPT is held as collateral and Populous will convert the PPT to Pokens on the platform to lender to the invoices sellers. When the lending period is due, you then you will receive your PPT back. Your PPT is the money but to be held as collateral by Populous.
Populous will buy back tokens to burn each year as well as distribution of profit. The distribution of profit is also in the form of a buy back and burn. So if you do not want to invest on Populous, you can still buy and hold for appreciation. If you are holding anyway, why not invest in Populous and potentially make 5% or more (not sure the interest as this has not been released) return each month investing by buying invoices.