Potoid was a shape shifting alien, the first recruit for the 2nd incarnation of Bad Company. He also had an organic space ship which he was linked to.
His motives for joining Bad Company were highly dubious and he seemed to have a deep seeded hatred for all the other members. In the end he showed his true colours by attempting to kill Kano and after failing to do that, beheading De Racine. It was his intention to take over the Krool heart himself and control the Krool.
Kano intervened just in time and killed Protoid.
Protoid, however was not dead. The humanoid version of Protoid was not the real Protoid. The real Portoid turned out to be his own ship and he made one final attempt to destroy Bad Company and take over the Krool heart.
Danny Franks was however able to jump into the Krool Heart and take it over before Protoid could and using the heart, destroyed Protoid.