Populous: Financial Solutions for the Business
The Populous ICO sold out in July in the preliminary stage, and the token price already gone through one boom and bust cycle. What is in the future for the project offering decentralized financial solutions?
Populous is a recent ICO on the Ethereum platform. The project idea behind the ICO is to use the blockchain and smart contracts to offer a form of invoice financing. This is a tool for companies to find funds while waiting for slow-paying customer accounts. Some businesses sell invoices, and there is already a thriving invoice market even outside the blockchain world. But Populous wants to add smart contracts to the mix and offer a blockchain-based service.
Stephen Williams, the founder of Populous Platform:
“Populous will be the first invoice and trade finance platform to use Ethereum and Bitcoin blockchain technology to deliver a global solution to the late payment problem faced by millions of SME’s from all over the world.”
Populous also has a wider set of smart contracts to facilitate the exchange of funds upon pre-determined conditions.
The project belongs to the London-based company of the same name. The most current news around the project involves the launching of a demo alpha stage of the flagship product, recently announced on Twitter.
The Populous ICO
The Populous ICO is a misnomer- the token hit the stage by raising funds in the pre-ICO stage. More than $10 million was raised, though only 1,200 investors managed to get on board at the pre-sale phase. Investors were surprised at this stealth ICO that never launched, and did not clog the Ethereum network like the Status ICO that preceded it.
The token distribution presumes a total of 53.2 million tokens ever to be created. Currently, around 41.2 million tokens are in circulation, with the rest spread out to the team, sitting as a reserve or intended for research and incentives.
The Populous Token
The Populous token has two sides. On the one hand, it has a role in the system where its price is stable. The token is used to represent national currencies- for example, $8 in the system would be represented by 8 Populous tokens.
But users can also withdraw tokens from the system and turn them into a regular Ethereum-based token, which is a tradable asset.
As a tradable token, Populous (PPT) can be exchanged for Ethereum or Bitcoin. So far, PPT can be found only on two exchanges, and in two trading pairs:
Populous is currently not exchanged for fiat, meaning it is at the mercy of one exchange and the limited investor community that uses it. There are rumors that Bitfinex may add the tokens soon.
Populous is still in the top 100 of tokens on CoinMarketCap, sitting next to tokens from other recent hot ICOs (Ark).
At the end of August, Populous had a bad week and continued to shed its price, as the market seems to be going through an ICO fatigue. Meanwhile, Ethereum (ETH) price is going up again, and investors may be moving away from this token.
Even with a very robust business model in the invoice finance industry, the market price of the PPT token may not rise far enough unless it lists on one of the big exchanges, Bittrex or Poloniex.
Buying and Holding Populous
In its current state, Populous is easy to hold using MyEtherWallet, the service that can contain all ERC20 tokens, compatible with the Ethereum network.
EtherDelta is not a very user-friendly exchange, but this is the only way to acquire PPT after the distribution of tokens.
Make an account, to be able to buy and sell. Currently, there is no fixed price for PPT, so you will have to look around at the orders. Click on a red order (sell) and you can buy that amount of PPT. Then follow the exchange's instructions to send PPT to your wallet.
Populous Price Prediction
The PPT token already erased most of the gains from the beginning of August. The token clawed back to $3.64, trying to erase the recent 30% weekly drop.
But the ICO is still too recent to decide on a direction, and as we said above, adding PPT to a major exchange and expanding trading pairs could lead to more robust gains in price.
In the near future, product announcements may drive the PPT price upward, as even now the project is recognized for its potential to start making gains almost immediately. The project has a clear idea and an almost finished product, bringing it ahead of other ICO products that are still in an earlier stage of development.
The Verdict on Populous
This project was elevated from other ICOs since before the start, and the interest to buy it up even before the ICO is a good sign.
The drawback is that this token may be hard to acquire for new investors, because of the strange buying process at EtherDelta. But at least storing the token does not require searching for a proprietary wallet, and MyEtherWallet works wonderfully.
If you like Populous for its business potential, still keep in mind that it is best not to invest funds you cannot afford to lose in whole or in part. The Populous price after the ICO may still be in the price discovery phase, with relatively low trading volumes of $526,245. Usually, actively traded tokens that are more liquid have a 24-hour trading volume in the millions of dollars. Populous still does not have enough trading volume to indicate a trend.