Our question is from anonymous. See the bottom of the post for how you can earn from asking questions!
What is Kelsey Coin?
Kelsey coin is **not **a cryptocurrency. It is simply a “digital bank”
Kelsey coin claims that one coin will always be worth $1.
The details are very sparse but basically it seems like you sign up with your facebook account and then you can send Kelsey coin to anyone else who has signed up.
The entire process is centralized (Kelsey and his friend run everything)
They claim that they will build ATMs and an online marketplace to buy and sell things with Kelsey coin.
The only way to get Kelsey coin currently is to send USD to Kelsey (the founder) and he will give you Kelsey coin in return. (Though they promise ATMs in the future.)
Short Answer
Is this a scam? Sort of, probably. (See long answer)
Is this a good idea even if it’s not a scam? No, not at all.
Long Answer
For it to be a scam, Kelsey (the founder) would have to break his promises which are:
If you send him USD, he will give you Kelsey Coin. The only way to test this is to send him USD and see if he gives you Kelsey Coin. I think he probably would because it only benefits him and the Kelsey coin doesn’t cost him anything.
Kelsey coin will always be worth $1. This one is pretty dishonest or at least naive. The way something gets its value is through the market (people buying and selling) based on supply (how much there is available) and demand (how much people want it). Sure, you have to buy Kelsey coin for $1 but what if I buy some and decide to sell it to you for $0.50? or $2? If you want Kelsey coin to be worth $1 you need to try to balance supply and demand. You can’t really control demand (you can try to influence it through marketing and so forth but at the end of the day it is up to the people to decide) so your only real option is to try to control the supply. If many people suddenly wanted to sell their Kelsey coin and there wasn’t enough people available to buy it, the price will start dropping as people are willing to sell it for less and less.
Is it a good idea even if it’s not a scam?
No, here is a list of reasons why:
There is a fixed supply of 1.2 Trillion Kelsey Coins. Besides the fact that a fixed supply makes it impossible to try to maintain the $1 level (see the previous paragraph about supply and demand), a bigger question is who gets those coins? Well Kelsey of course! He gave himself all of the Kelsey coins at the beginning so you need to buy them from him. Now maybe he is using those coins for good purposes but either way we have to trust him. Which brings me to the next reason.
We have to trust the founders! This is not a decentralized, trustless, cryptocurrency. This is just a digital bank that is not backed by anything! You may as well get a paypal account and then you at least have a company that you can (somewhat) trust instead of some random guy.
There is no way that this project will succeed. Because of the reasons above, no one is going to ever accept Kelsey coin as payment. In other words, it will be worthless.
Red Flags
Whenever you are trying to find out the truth about something, you will usually come across some suspicious things (red flags). This doesn’t mean that it is necessarily false when you find a red flag but as you find more, it becomes more likely that whatever you are researching is false.
Here are some that I found:The first thing I found was an answer to this question given by Kelsey himself.
Any person that thinks Kelsey Coin is a scam is:
- Mentally disabled
- Doesn't know what a scam is
- Broke (or rich and they’re mad I’m gonna be richer than them)
- Jealous because they know Kelsey Coin is making me the richest person in the world.
- Does not understand how it works at all (hence why they are mentally disabled)
- Probably watches My Little Pony
This answer gives us some interesting insights into Kelsey’s motivation (Ironically it gives us no insights on whether or not Kelsey Coin is a scam). Notice that he mentions himself being rich twice! The rest of the reasons are simply attacks on anyone who would dare question it. This is what is known as an *ad hominem *fallacy. This is when, instead of debating the merits of an idea, you simply attack the person who is presenting the idea or counter-idea. Any fallacies are read flags but ad hominem is a particularly big one.
On their website (https://kelseycoin.io/) there is no explanation for how they will make this work. There is not much information at all. When people are not willing to give much information, that can often mean that there aren’t good answers.
Their plan (https://docs.google.com/presentation/d/11p0DcFrG43QL4U9vYxljcoHqO6s60Ixoce1zv9RPL48/edit) is full of naive claims without any data or logic to back it up. Their business model page and adoption method page were especially entertaining with their simplistic and ridiculous statements
So their business model is: “You buy Kelsey Coin from us and try to spend it places…”
And their adoption model is: “When people see how awesome this is, they will use it!” because doing actual marketing would be a waste of money
Motivation
Another way you can judge a project is by looking at what the motivation for it is.
Kelsey coin seems to be a way for Kelsey to give himself 1.2 trillion dollars. If Kelsey coin did take off that is exactly what would happen.
He claims it is to help make transferring money around the world to people easier but if that is his real motivation, he is going about it in a very impractical way. We already have much better solutions out there that don’t involve paying the founder over a trillion dollars.
Conclusion
Stay away from this project!!
Thanks for your question! If you have any questions for me let me know in the comments, if I answer your question in a post, you will get half of that post's rewards!
Use the tag "solvemyworld" in your posts about solutions to problems, life hacks, tips or advice for a better life. When you do, I'll give you a free upvote!