Is Now a Good Time to Buy Populous (PPT)?
Everyone in business has experienced the frustration of overdue invoices. Sometimes it is due to bureaucratic inefficiency, other times to human error. In either case, the effects on the party that is owed payment are the same: for Small to Medium-sized Enterprises (SMEs), if enough invoices are delinquent, liquidity becomes a problem. This common problem has led to the rise of invoice factoring, a practice in which companies sell their outstanding invoices to a third party (known as a “factor”) for a discount, and in return receive the liquidity they need to stay in business. While many people may not know it, this has grown into an enormous industry.
In the past, buying and selling invoices has been the sole domain of financial institutions, but the team behind Populous (PPT) has a different vision: a decentralized, blockchain-based network for SME invoice factoring that anyone can participate in. Does it live up to the hype? Let’s explore its features and determine if this is a good time buy Populous.
How Populous Works
The idea behind Populous is to provide a global, P2P platform built on the Ethereum network that connects people and business selling invoices, with people and business that want to buy them. Users can bid on an invoice that is for sale, and the seller decides whom to sell it to; essentially making Populous a decentralized eBay.com for invoices.
Populous actually has two tokens: the first are the PPT tokens, which are publicly available on Faast and other exchanges. PPT serves as an “access token” which means you cannot use the Populous platform unless you hold PPT tokens. The second type of token is called “Pokens”, which only exist and can be used within the Populous platform itself. Pokens are what are used in the transactions between buyers and sellers, and are pegged 1–1 to the value of the British Pound, similar to how 1 TrueUSD token will always equal 1 USD. These pokens can be exchanged for strong, reputable cryptocurrencies like BTC, or for fiat currency.
Basically, you buy PPT, convert your PPT for Pokens inside the Populous platform, and place bids on invoices with those pokens. If you win the bid, you pay the seller with pokens, and when the invoice is due, you receive the payment.
Now you might be thinking, “okay, that’s all great, but why do we actually need Populous if invoice trading is already such a big industry?”
Well, Populous wants to improve upon the invoice factoring industry in terms of technology and accessibility. Traditionally, invoices are only bid upon within countries, and not across borders, due to differing legal systems. In addition to this, most countries only allow “Accredited Investors” to engage in invoice buying and selling. The concept of investor accreditation exists, ostensibly, to protect lower net-worth individuals from taking on more financial risk than they can handle.
One can make the argument that it succeeds at this. But there is an equally valid argument that it creates a glass ceiling which prevents ordinary people from participating in various types of investments and potentially elevating their station in life. The decentralized cryptocurrency movement is in many ways a reaction to these sort of arbitrary rules, and Populous bypasses these limitations by creating truly open and global market. Everyone is allowed to participate, regardless of what country they live in or how much money they have.
From a technical standpoint, the use of immutable blockchain tech offers transparency, and significantly reduces the risk of human error or tampering with invoice records, and automated payments on the platform via smart contracts keep everything running smoothly.
Is Now a Good Time to Buy Populous (PPT)?
PPT hit an all-time high of $68.91 USD in January of 2018 before undergoing the large correction that affected all cryptocurrencies this past spring. Currently it sits around $7.90. As long as businesses exist, there will be unpaid invoices, and the demand for invoice factoring is unlikely to go away anytime soon. If you want to get in on this, PPT is a steal right now, and there is no better way to get PPT than Faast— in fact, it’s actually one of the most popular tokens on Faast at this moment! In just a few seconds, you can add PPT directly to your own wallet where it can’t be hacked or stolen, and where withdrawals can’t be frozen.