What does Populous have in common with Gnosis, Stox and Augur? They are all tokens used in the prediction market. I bet you are now scratching your head with this comparison? Read on to find out more!
Populous is in an area of the market with little to no competition. It is not just in invoice factoring but also in the prediction market space that Populous will operate in. Just going by the figure provided in Populous’s UK Business Plan this sticks out like a sore thumb and probably one of the determining factor for the success of Populous.
The diagram shown above is from Populous’s UK business plan which can be downloaded here.
Populous is not used in the same way as Gnosis, Stox or Augur but it does attempt to make predictions. It makes predictions of the market by using a very powerful financial metric in conjunction with the data gleaned from the XBRL.
From my last post, I detailed how Populous will anticipate trends in the market using the XBRL data and I elaborate more below.
Knowing the credit history of clients is just not enough. There are still risks going forward and Populous as new company will minimise or even mitigate these risks. A client may have a perfect credit score based on historic data but you could be blindsided by future eventualities.
Populous will use another financial metric together with the XBRL data to predict the future financial needs of the client. Together with the credit history a more “refined” risk level can be assigned and hence a more appropriate rate of return for the investor.
This will give an “enhance” risk level assessment to Populous’s investors and possibly higher rates of returns.
The cost of marketing can be kept to a minimum. Populous is geared towards a particular niche in the market and not the mass market. So it does not make sense to market Populous to the mass market at this time. The Marketing Eye has been commission to do exactly just that and the “AK47” approach to marketing is not efficient nor cost effective.
A more defined and targeted strategy is more ideal for Populous and the companies identified through the XBRL data will be on the list. I have no doubt that The Marketing Eye is working very closely with Populous at this very moment to craft a very well defined marketing strategy based on the output from the XBRL data set.
The Marketing Eye can utilize the output from the XBRL “engine” to target those already using invoice factoring services offered by Populous’s competitors.
Populous will predict the future liquidity needs of potential clients even before the companies themselves know they need more finance. By identifying these potential clients, Populous can approach these companies in advance to market their services before they seek out other factoring companies for liquidity needs. Once a company reaches a stage when it is in a liquidity crunch “Populous” will hopefully be the first that come to their minds!
Through the XBRL “engine” trends can be established and other financial metric used to predict when invoice factoring services may be required by potential client.
In conjunction with the XBRL data set, Populous will use another financial metric to assess the health of a particular company. The XBRL data gives a snap shot on the “health” of the company based on past records but that is just not enough. Populous will use the other metric called Altman Z-Score Formula to assess the future health of a company.
The Altman Z-Score formula is used to predict the probability that a firm will go into bankruptcy within two years. The Z-Scores are used to predict corporate defaults and an easy-to-calculate control measure for the financial distress status of companies.
This does not mean that just because there is a possibility of bankruptcy for a particular company Populous will not services these companies. With all financial protective tools in place such as trade insurances and liens/debentures the cost of borrowing will just be higher for these companies with a higher rate of return for investors.
The risk levels for these companies will just be higher and it does not mean that they will go into bankruptcy. Hopefully with the help of Populous, bankruptcy does not come true for these companies.
Populous's appearance in the market could not have come at a perfect time. The UK and indeed the world economy are forecast to fall on hard times in the near future. Many companies will be on the hunt for liquidity when the credit crunch comes and Populous will be there to lend a helping hand (no pun intended).
I do not expect the coming liquidity problem to be solved by banks, financial institutions or the government because they themselves are in a whole lot of problems when it comes to liquidity. The populous through Populous may be called upon to help alleviate some of the liquidity issues and this is why Populous also score themselves highly with “Ease of Access”.
So once the platform is up and running a change in marketing strategy might be called for!
I have a few post about Populous and you can read them in my blog here or just click on the links below.
In my humble opinion, the risks to the downside are small compared to the potential upside rewards. This should not be construed as financial advice but an opinion only. As usual do not invest more than you can afford to lose as these investments can go to zero and always do your own due diligence.
I’m just letting off Steem, if you found this post informative then UPVOTE (with FULL POWER), COMMENT, FOLLOW and especially RESTEEM.
I wrote this article myself and it expresses my own opinions. Computer literacy is crucial in this day and age. Just because someone tells you it is good does not mean that it is good for you.
