Been a while since you heard another freestyle from us ;)
Uh 1...2...3...4… *Aaron starts beatboxing*
Mike: “Crypto gives the people back their voice,
Governments, nations, and any haters just don’t have a choice,
Crypto gives us all opportunity,
For a new niche, new voice, and upward trajectory,”
Aaron: Nah nah...too typical of a topic. Let’s get a bit more personal about our crypto struggles.
Uh 1...2...3...4.. *Aaron starts beatboxing again*
Mike: “Starting a huge crypto business ain’t just something we dreamt,
Because now thousands of invoices are being sent,
But unfortunately for us, the bear market came,
And now no one can pay us, which is pretty lame”
*Aaron puts whiskey handle down and high fives Mike*
Mike: “Ohh baby, we’ll be stars in no time...but yo, imagine if we could somehow get money for our empty invoices..?”
This leads us to today’s project, which has a novel idea for the space, and is at #52 on Coinmarketcap at the time of this writing: Populous.
Let’s dig in…
Wtf is this shit?
Populous is a peer-to-peer platform globalizing the invoice discounting market.
WAIT...wtf is an invoice discounting market.
Glad you asked! Most people have no clue :D
Believe it or not, there is an entire market for businesses to sell unpaid invoices, so that they can gain some liquidity, even if at a loss. Invoice buyers can purchase these at a discount, and if/when they get the seller to pay up, then they generally receive most of it, but some may go back to the original companies owed. It’s a win/win (kinda). All in all, invoice discounting is seen as a financing strategy for companies. “Invoice financing,” is another common term used to describe the industry.
As you can imagine, those who purchase these invoices essentially act like a credit agency. It helps to understand who owes the debt, how long it is outstanding, and understand the ultimate risk factor associated with the invoice. This industry is localized by geography and has lots of operational headaches.
So, Populous has created a system to streamline and globalize this market..connecting invoice buyers with sellers.
To make this work the Populous platform (PXP) uses the Altman Z-score Formula, XBRL (eXtensible Business Reporting Language), Pokens (a pegged stablecoin), and of course, its publicly traded PPT (Populous Platform Token).
XBRL is a global standard framework which companies worldwide use to exchange business information. Each year companies submit various financial documents to governments and regulating bodies, which are then intentionally standardized using XBRL. Populous has built an XBRL back-end system which can pull in over 2million records from the UK Companies House (for now) and is used as part of their in-house credit rating system and marketing efforts for the platform. They may use this data to help connect invoice buyers with sellers. So, this is the framework used to obtain, parse, and save data on companies, to fulfill Populous’s efforts.
The Altman Z-score Formula is used to predict financial distress in companies. It is a general logic. The formula covers three main parameters:
- The probability that a business will go bankrupt within 2 years
- If the business will default or not
- A control measure for financial distress
The Altman Z-score in combination with XBLR actually allows Populous to bypass the need to integrate with traditional rating agencies and create their own, real-time credit-rating protocol.
Now...if you want to submit an invoice to sell, there is an approval process. A Populous administrator will check your invoice to make sure it is legit enough to even upload (lol). Once approved, your invoice is uploaded for auction for 24 hours.
After 24 hours, the auction ends. Before then, you can terminate it, or it can be successfully purchased!
Invoice buyers must go through KYC and once approved, can bid on invoice personally or with a bidding group.
Generally, the invoices are bought and sold using Pokens, an ERC-20 stablecoin token (lol). Pegged to 1 USD, GBP, and other national currencies.
PPT, on the other hand, is what was used during their ICO crowdsale. These are traded publicly, but can also be used on the Populous platform by investing in invoices and exchange for Pokens.
Welp, hope that sums it up! You should have a general idea now of wtf they are doing.
Who tf is behind this shit?
Stephen William is the founder and CEO. He received his degree in Philosophy in 2008 from London Metropolitan University. According to his LinkedIn, prior to Populous, he was a publisher at Tramp Magazine and founder of Olympus Research, an analytics company...this might be how he gained inspiration for Populous.
All in all, mid-tier shitcoin. Has been going down in market cap, looking for its real valuation. Also, Pokens is a terrible name for a stablecoin...but let’s see how they do.
Hope you learned some shit.
- Mike and Aaron