Wolfonaire Chatbox : AMA With Polytrade (25th November, 2021)
Hello! Wolfonaire Family & Crypto Enthusiasts
We recently hosted an AMA With Polytrade 25th Nov, 2021 at 02.00 PM UTC. This session was phenomenal. If you have missed then here is the precious AMA transcript, for those who missed the live session this will enlighten you for sure…
Guest Speaker :
Mr. Piyush Gupta| CEO, Polytrade
(Note: This is the transcription of the event. Please note that the transcript was edited for comprehensibility and coherency, while the content was not changed.)
Piyush : I am the founder and CEo of Polytrade. I’ve been with the Trade finance industry for the last 15 years with experience in organizations like Societe Grenerale, Kitara Corp, AmiCorp and few other big names. I setup my own trade finance business back in 2014 and since then have expanded operations to Hong Kong, Singapore, India and Dubai. Am currently based out of Dubai. At Riqueza capital we have processed invoices worth more than 500mn USD in the last few years… all of which we are confident will move to POLYTRADE. Am an Aerospace Engineering from IIT Bombay by education.
We’re into the real-world invoice financing business since 2014 with 5000+ customers and US $500 mn+ worth of invoices financed. In our earlier venture Riqueza capital, we identified issues faced by SME suppliers like High rejection rates, high cost of funds, longer turn around time, large ticket size requirements. What led us to the launch of Polytrade is the awareness that Defi and Blockchain could help us address these problems.
In a 7 trillion USD trade finance industry, the unmet demand in trade finance is to the tune of $ 1.6 trillion. Polytrade aims to address this huge gap by harnessing the massive liquidity of the crypto world targeted towards SMEs globally.We will seek funds from crypto native investors to use our platform to lend us stable coins. These stable coins are then converted to fiat or otherwise, and given to the suppliers, who then become our borrowers.
Polytrade is a crypto lending platform to meet the working capital needs of SMEs in developing economies. It connects borrowers, lenders and other stakeholders. It’s a blockchain-based, transparent, secure and rewarding pool. It provides a new asset class for crypto investors to invest in — real world invoices from grade A buyers like Walmart, IKEA etc., backed by credit insurance.
Watch thsi explainer video: https://youtu.be/daBIn6yd7WU
Wolf : What Are The Major Milestones You Have Achieved In Recent Days?
Piyush : Polytrade boasts of a strong and personal community, listings on Gate, Dfyn, Uniswap and Quickswap happened in the month of August. LP staking programs were launched on Quickswap and Polytrade’s website. Investors have enjoyed very good yields from these pools. Some crucial partnerships have been forged with with Formation (a calibrated risk-return platform for lenders), Polygon (the blockchain on which Polytrade is built), Chainlink (the pricing oracle for real-time price feeds), Venly (for user wallets on our dapp), Unreal Finance and many more. Real-world strategic tie-ups with Global Trade Review for visibility in the Trade Finance world and MoU with Marco Finance, a company focused on SME lending in LATAM markets, for access to a new market have been secured, making Polytrade’s real-world intent a clear and present agenda.
Our newsletter: https://polytrade.finance/newsletter/oct21-vol-i.pdf
The month of oct also saw MVP unveil at the World Blockchain Summit 2021 in Dubai on 13–14 October 2021.
This Nov Polytrade got a host of other exchange listings, with MEXC, BITMART, PANCAKE SWAP, KUCOIN.
MVP unveil video: https://youtu.be/E2cEfmNC-lA
Wolf : Awesome 👌 🆒️ 🙌….I’m huge fan of kucoin. You can say “Gemverse” Man. Have you met all your goals in the roadmap till now? And were there any difficulties that you didn’t expect and were not prepared for?
Piyush : Till date we have achieved all the goals on the roadmap. For future, Polytrade META is in the progress for the Metaverse, we are setting up the lenders pool . Our mainnet launch date has been set for 10:10:10 hours UTC, 10th January next year and our team is working towards it. We will keep expanding our Partnerships network to tap into newer communities. We are working on more staking programs and also geography focussed exchange listings to penetrate and access newer markets.
We are playing a big role of bringing a century old industry to blockchain space that comes loaded with opportunities and challenges. Some of the major challenges that needs to be addressed:
⁃ Educating the whole ecosystem of Trade finance about how crypto will be used and employed and benefit them
⁃ Making it super simple for a manufacturer/borrower to perform his transaction (even though he might or might not understand the underlying crypto or blockchain)
⁃ Getting buy-in from Crypto investors, cos vast majority of them have not had a need to understand trade finance industry. As they have never invested in this space, because regulation & banks never allowed you to.
Wolf : We have heard about Polytrade coming up in Metaverse. Please enlighten us more about your TRADE THEORY of Metaverse?
Piyush : Thats our favorite topic these days. Polytrade is going to be building a 100% on-chain trade financing and business finance solution specifically focused on the Metaverse. The mechanics of trade finance and how these processes work will change drastically as we shift towards digital worlds in the metaverse, and having efficient processes for procurement and financing in the metaverse could become a massive industry in and of itself. Current aspects of credit rating, shipping guidelines, credit insurance and the whole ecosystem for trade finance will evolve and change, Polytrade is working to be at the forefront of this shift and helping to shape the financial processes within the metaverse along with other thought leaders.
Polygon(MATIC) has agreed to be their first customer to be part of this platform. Which means every invoice that POlygon is going to pay in future will go through this platform. So every service provider and vendor of Polygon has to use the Polytrade meta platform. This is a big game changer and needs extreme foresight and thought leadership to build this whole platform. Polygon trust on Polytrade to scale this application kicks it off really well and its with time we need to see how POlytrade evolves and becomes the leaders it claims it is.
Lets move for the Twitter round
Q1. Pioneering is the culmination of a difficult process, with a promotion budget that is almost the same as venture capital, how do you handle when project is making a small profit and financing the Polytrade community is there any other income? because it’s like running a branding?
Ans. Polytrade is not a random idea which is being built as a fad by our team. We have been in the space of Trade finance for the last 7 years enabling $500 mn worth of invoice financing with over 5000+ customer base worldwide. With an unparallel reputation in this space , past expertise in Trade finance, skilled team and backing by a pool of best investors and advisors like Polygon, Axia Ventures, AU21 cappital , Master ventures etc we have come so far with great success running a real business rather than just a mere branding.
Q2. Did you consider community feedback/requests during the creation of your product in order to expand on fresh ideas for your project? Many projects fail because the target audience and clients are not understood. So I’d like to know who your ideal consumer is for your product?
Ans. We value our community feedback. We have come so far with the support of our investors, partners, entrepreneurs in the crypto industry but above all, our community. Not just our telegram or Twitter community, but Based on inputs from the 500 customers we have partnered with in the past.. All inputs are taken and our products improves steadily to suit all future needs.
Q3. Crypto currency is so popular in Southeast Asia market, some countries like Viet Nam, Philippines and Indonesia,…Does “PolyTrade’ have any plan to approach these countries which are so potential in crypto?
Ans. Our focus is on Vietnam these days and we are receiving a lot of love and support from our Vietnamese community. We have a TG community running : https://t.me/polytradevietnam
In fact our next AMA is on coming Sunday with one of active AMA partners in Vietnam- https://t.me/migoi_io
In fact, some of the leading media houses covered Polytrade recently. You may read them at:
Gradually, we will tap in to other Southeast countries.
Q4. PolyTrade is a borrowing platform where invoice sales where sellers can advance their account receivables and receive it sooner. However, in Accounting business, uncollected payments are called doubtful accounts. How will PolyTrade handle this if the invoice is not collected?
Ans. I would like to correct your understanding of Trade finance here. These pending invoice payments are outstanding receivables until they are realised. International trade usually takes place on credit terms and payment comes after a gap of 30–120 days during which receivables are outstanding on the accounting books. Polytrade will look into financing such outstanding receivables. In case the buyer defaults invoice payment of a supplier in future or goes bankrupt, Polytrade will have credit insurance in place to secure the payment.
Q5. DeFi applications even if they run on a blockchain like Bitcoin, Ethereum, EOS or TRON, it does not mean that they are fully decentralized, since most DeFi protocols and applications have some point of centralization, in the case of Polytrade what can you tell us about it?
Ans. All of our goal in this ecosystem and space is to see the dream of true beneficial decentralisation come true. Unfortunately this is not a step change, but going to be an incremental one over time. Trade finance is a very old industry with conventional processes and reglatory norms to be followed for compliance. So Polytrade cannot be a 100% decentrlized solution right to start off with. Our goals it to make it more and more decentralised… and move the decision making to the governance pool. The decentralisation score if our attempt to show that direction. Overtime we believe it is possible, but it will be a journey.
Our roadmap does indicate how the score will change over time. We hope to stick to it as such.
Lets move for the community round
Q1. Do the token holders have the right to participate in the governance of the project? What kind of decisions can they vote on about the project?
Ans. This is the most important token utility of TRADE. Governance will ensure the broad guidelines of financing parameters are adhered to. Any new product line, broad changes in market segment, major changes in tokenomics, new capital raise, etc are some major decisions which governance will be able to vote.
Q2. Many people want to learn about your project but they have problem with English, so do you plan to spread awareness about your project in different countries where English is not good? Do you have a Marketing strategy aimed at developing many different communities such as Vietnam, Indonesia, Korea, Iran, … about your project so that they can easily communicate and understand Project.
Ans. We understand this and we definitely do not want language to be a barrier for our community growth. We are already having our communities in English, Vietnamese, Chinese and Korean. Soon we will be launching more communities for other geographies.
Q3. Currently a lot of people are looking at NFTs, metaverse, and games. Can you tell me what advantages will you have in this field future?
Ans. As explained, Polytrade Meta is going to be our major product targeting crypto companies with a complete suite of invoice finncing and management solutions.
Now the session ends with lots of thanks to our Guest Speaker…
Here are some important links of Polytrade