Platonius offer a new kind of lending platform not tied to $USD and with a fixed daily interest rate.
- Not tied to $USD
- External exchanges only
- Automatic daily payout in XLM
- Fixed daily interest rate
- Driven by pump and dump team
- Weak daily interest rate
Platonius has not reached the soft cap goal and will end the ICO, platform is for sale on bitcointalk.org.
I have been contacted by Platonius and they have cleared up some of my concerns with the platform. I have revised the review accordingly and bumped up their score.
What Is Platonius?
Platonius aims to become the biggest lending platform in the cryptocurrency space and just like many of the next generation lending platforms, they need to come up with a new model. The old lending platforms like BitConnect and Davor really screwed the entire lending space, which many will argue were straight up ponzi schemes. Platonius is here to change that and to show that it is still possible to get a fixed daily income using a platform that is sustainable. They have a very interesting solution to many of the issues with the old lending platforms and while Platonius isn’t as flashy and groundbreaking as Crystal Token they keep it simple and in the hands of the users. This will be explained in details during my review.
The Ethereum blockchain seems to be the go to platform when it comes to lending platforms and Platonius is following the footsteps of many. This is in my opinion a good choice and I’d prefer Ethereum over any new script by unknown developers. Since Platonius is an ERC20 token you have access to their wallet information through etherscan.
Platonius claims in their whitepaper that they are sustainable by not being tied to $USD. Instead they will build around the Stellar (XLM) blockchain since it’s safer, faster and cheaper. Even though I agree with not using $USD for interest payments is much better, then I’m a bit puzzled on how that alone with guarantee the survival of the platform. The sustainability must also be tied to how they generate income, if there is no income, then there is no platform.
Platonius has made a nice short video about their project and like many others, it’s not really providing any answers, just a lot of promise.
How Does Platonius Make Money?
Unlike many other lending platform, Platonius doesn’t have a trade bot, no they have 3 income streams which all revolve around cryptocurrency.
Pump and Dump
According to their whitepaper, the main revenue stream for Platonius comes from their Pump & Dump Telegram groups/websites. They are brutally honest about this and they clearly state in their whitepaper:
“These are extremely profitable (mostly for the owners, which we are).
We won’t share these groups since it would harm our platform if
members knew exactly which groups we own.”
They then further go on to not recommend anyone joining this platform to use their telegram groups/websites since you will most likely lose money. The whole process is automatic and is fully built to make the Telegram group owners (Platonius) money.
Pump and dumps are highly controversial and illegal on the stock market, but this is crypto and there are no rules. Many would argue that this is what crypto is all about and that’s why cryptocurrency has such high volatility. I’m very biased on this issue, but I do like that Platonius is so honest about their business model.
Another income stream is trade signals, and it seems that Platonius have contact to several trade advisors which helps making the best trades to gain profit.
The final income stream is good old ICO investing in which Platonius will invest a part of the invested money into different ICOs they believe have a great future. They claim none of the ICOs will be high risk, but to be honest then everything crypto is high risk. In this endeavor they will be in contact with advisors and the community to decide which ICOs to invest in. Platonius knows this is risky business and they state that if no profits are made, they will compensate using their own funds.
Platonius ICO Phase
Platonius is just having a single ICO phase which will begin July 1st 2018. This is quite interesting and kinda refreshing not to get dragged through a long ICO phase. Platonius believe having multiple rounds is unnecessary and having just one round means investors will most likely not sell the Platonius token (PLAT) for less than the ICO price.
Platonius has no wallet build in the platform and the selling of PLAT tokens during the ICO will be using the Coinpayments API. This means they can’t hold your funds during the ICO, which makes it less risky for you to invest. On a final note, all unsold PLAT tokens will be burned.
The Platonius Lending Platform
Platonius has a different take on how a lending platform should be and instead of promising high daily interest rates they offer a fixed daily percentage. This is closely tied to how their income streams work and since they don’t have a trading bot to generate daily income based on volatility. Instead go for the bigger payouts from their pump and dumps, a process which can’t not be happening every day. The interest rate seems low compared to other lending platforms, but there is no surprises with Platonius, you know exactly how much you will earn which each loan. To make up for the low interest rate Platonius has set up some bonus days plus you also get more capital back on the release date.
Platonius has tied their lending platform around Stellar (XLM) instead of the $USD and I am always happy to see that and hope to see more of it with future lending platforms. It does however become a little confusing, because you are buying the PLAT token and you start a loan using this token. But then your daily interest will be paid out in Stellar and for the smaller loans you don’t even get your PLAT tokens back, because the capital release is also paid in Stellar.
Setting up a loan is also quite different from what we are used to. A unique link will be created with the following information: the address of where to send your PLAT tokens and the amount of PLAT tokens you need to send. Once the PLAT tokens are sent to the given ERC20 address, it may take up to 24 hours for your lending package to be activated because each lending request will be manually checked. Once your lending package is activated, you will receive your daily interest automatically. This does however seem like a lot of work from the Platonius team to setup each loan manually and I’m quite surprised this isn’t an automatic process. However I do like the idea of not having to login to their site and withdraw the daily interest and that process is fully automatic.
Platonius only offers 3 lending options which is based on the amount of your loan and like always the loan gets better with a higher amount.
|$250 – $1,000||$1,001 – $10,000||$10,001 – $100,000|
|0.15% Daily Interest||0.20% Daily Interest||0.25% Daily Interest|
The loan structure is a bit more complex than other lending platforms offer so lets do an hypothetical loan. So let’s imagine that when the ICO is over and you can setup your loan that PLAT is worth $2. You have managed to buy 1000 PLAT tokens and you want to loan them all, this will put you in the second bracket with a loan of $2.000 locked in for 60 days. Each day you will receive 0.20% daily interest, which is worth $4 and this will be paid out in Stellar, which with today’s price is 30 cents meaning you will be paid 13,33 XLM. But since the daily interest is tied to Stellar you can be lucky that the price tanks to 15 cents and you will be paid 26,66 XLM instead and of course Stellar can have a big run up and will be worth 50 cents and you will only get paid 8 XLM. On top of the daily interest you get 0.05% every 4th day, which will be worth $15 in total when the loan is done. On capital release you will get all of your $2.000 back in XLM which again depending on the price can be good or bad, but on top of that you also get 25% of your loan back in PLAT tokens, so the total capital release is 125%.
That was a lot of numbers, so lets try to put them together and see the total worth of the $2.000 loan:
- Daily interest of 0.20% for 60 days = $240
- Bonus rate of 0.05% every 4th day = $15
- Capital release 125% = $2.500
- So the total value of the loan in $ is = $2.755
Sadly it’s not that easy to predict how much you actually will be paid since you have to take the volatility of XLM into account, the total value of the loan could be much more or less. But this is actually the case with all lending platforms, the daily interest is always tied to another cryptocurrency, be it their own coin or some other. Platonius has not mentioned anything about the free tickets to giveaways, so can’t really factor that in to the loan.
The Team Behind Platonius?
To no ones surprise there is no mention of team members in their whitepaper. If I was making profits of pump and dump telegram groups and websites I would also prefer to stay anonymous.
Like always it’s time to see what information we can pull from their domain name, which they registered 19 May 2018 and locked it in for just 1 year. This really isn’t a good sign and I’d even call this a red flag, it certainly doesn’t seem like the team believe this will be a sustainable platform. It is easy just to renew a domain name, but why save a few dollars on that compared to the message it sends. It also doesn’t seem like their site is hosted on a dedicated server, which always is a cause for concern during an ICO when a lot of traffic will come to the site. I hope they are prepared or will find a better solution when the time comes.
Platonius has reacted to my observations and would like to clarify:
We first developed the whole platform, after that we started thinking about a domain name and a platform name.
We do not use dedicated servers since we are not a hype platform (Like davor, Ucoin Cash, Bitconnect). We use offshore hosted servers which makes us anonymous and protects us from government complains. About the 1 year registrations, we will soon add 2 years, you where totally right about that.
It makes perfect sense to start with that platform before working on a platform name and I like the fact they will add a few more years to their domain registration, it shows faith in the project. I also understand they are not going down the MLM hype platform path since that was a road for disaster, but I’m just concerned for the amount of traffic during the ICO could break the server.
Their domain contact is protected by WhoIsGuard, but this is normal practice for anything online these days.
The Bottom Line
This Platonius review has been a quite interesting journey and I have had a few moral battles a long the way. This is mainly because I’ve been confronted with their main income stream being pump and dumps. Pump and dumps have a really bad name and for valid reason, but again how would crypto have it’s volatility without them. Just look at Bitcoin, the insane price pump late 2017 leading up to a massive dump in Jan 2018 followed by the current bear market. The price of Bitcoin seems very much to be governed by other forces than the regular market forces. Cryptocurrency is the wild west right now, so why not embrace it until regulation happens.
Platonius aim to become this sustainable platform but I just wish they would hammer in how they will become that. I understand that not being tied to the $USD is a move in the right direction and I also think that Stellar is an excellent choice for a coin. The only way I see this being more sustainable is that it does eliminate the worry of the PLAT suddenly loosing value and you need to do price manipulation to keep investors happy for daily interest payouts. But like I briefly mentioned earlier, you need income to be sustainable, you need a stable business model and I’m not convinced that pump and dumps are stable at all. Platonius has replied with the following:
The main reason why we do not pay out in PLAT is because this way the value of PLAT we grow faster. Since we own a big part of the PLAT tokens we decide the price.
This is of course 100% true since you start a loan using only PLAT and the majority of the loans will paid back in XLM. This will in time leave less and less PLAT available on the exchanges and since Platonius is the main token holder, they have a say in the marked price.
Another thing, which i haven’t mentioned earlier in the review is that Platonius will never have an internal exchange. Every trade with the token after the ICO will happen on ForkDelta and when the volume is high enough, they will look into getting on other exchanges. The reason for this is to build trust towards the community and many other lending platforms use internal exchanges to manipulate the price, leading to less trust among investors. This is a great move and it sounds so great, but it’s just not true. Just think about this for a second, this team make a living off pump and dumps, so of course price manipulation is possible. There is absolutely nothing holding these guys back from manipulation of their own token. Platonius has replied with the following:
We can’t manipulate our own token if we are listed on an external exchange.
I see this statement as a contradiction to the previous statement from Platonius, since they are the main token holders they can control the price and isn’t that price manipulation?
I have briefly mentioned this earlier but it seems that the PLAT token will mainly be in the hands of Platonius. All the loans are made with PLAT, but the majority of the payout are made with XLM. All other lending platforms have paid out using their own token and maybe that’s a reason why they moved away from that model. But maybe it’s because they want to drive demand up on the token and then they can cash out when they are low on funds to help pay for the loans. There is also no staking with this platform so you either make a loan with your PLAT or you HODL and hope for the price to go up. I first found it weird why they would choose to go that route, but after Platonius contacted me it became clear it was because they want a say in the marked price of the token.
I think Platonius is on the right track in many ways with their lending platform, they offer a fixed daily interest rate, which might seem low, but I would argue is realistic. You also get automatic daily payouts straight to your XLM wallet without the hassle of logging in to their site and selling on a exchange before you can get your profits. It just bothers me is that the loans are setup by hand and can take up to 24hrs before activation, this seems like a poor life choice for the sorry souls who have to do that job, plus why can’t that process be automatic as well? It seems like they have the right idea about the setup, but not the technical skills to execute. This however does not mean this platform can’t be successful and after being in contact with Platonius they will address some of my concerns. For this reason I have bumped their score from a 6 to an 8. I hope they have a great ICO and will have the means to improve on their platform.