Is The KODI Crypto a Scam or Legit?
KODI is a cryptocurrency project on the Binance Smart Chain that has received a fair amount of attention because of their new take on the entertainment business. More relevantly, the token experienced a very sharp price increase a few weeks ago that drew quite a lot of attention to it.
With that in mind, this article will cover whether or not KODI is a scam or legit. We will also offer our take, not financial advice, on whether or not the project is a good investment and what exactly KODI does.
What Does KODI Do?
KODI combines a few different projects into one. The developers are using the KODI project to bootstrap an entertainment network that currently hosts some podcasts and roundtable discussions with the founders.
Access to the entertainment network is limited to tokenholders, which does provide some incentive to hold the token. Of course, there is not much incentive at the moment because no one cares about any of the programming on the KODI network.
KODI has also launched a subsidiary company called PITCH that will do marketing for cryptocurrency projects. 33% of the revenue from PITCH will go to a KODI marketing wallet and 66% will be used to purchase KODI for airdrops to holders.
Basically, KODI is taking the SafeMoon strategy of rewarding token holders and adding an extra revenue stream on top of it.
Our problem with KODI is the very strange tokenomics of the token.
KODI’s Strange Tokenomics
We likened KODI to SafeMoon with an extra revenue stream for holders. KODI, however, still has a 12% transfer tax.
Yes, 12% of every transfer is sent to the developer. The breakdown of what the 12% is used for looks something like this:
- 3% paid out as BNB rewards for holders.
- 3% spent on marketing and development.
- 2% buyback tax.
- 2% as salary to the developers.
- 1% added to the liquidity pool.
The general rule is that you should use caution when investing in a cryptocurrency that has a transfer tax because it stifles usability of the token and it reduces your profit when flipping. A 12% transfer tax is also quite high in terms of cryptocurrencies.
Another feature we find odd, though we do like, is that selling over 0.2% of the supply is banned. The transaction will simply fail. This has the intended purpose of making it impossible for whales to dump the coin, but there are ways around this (multiple wallets, smaller transactions, etc.).
Now, the positives with all this transfer tax nonsense is that tokenholders do receive a share of the transfer tax paid out in BNB. The problem is the share they receive is small at 3% and only limited to those holding 5 million tokens (~$1,600 worth of KODI at the time of writing).
To summarize, KODI has tokenomics similar to those found in SafeMoon, but with more restrictions that only benefit the developers.
Is KODI a Scam?
We will not call KODI an outright scam (read:. a rug). The team has audited smart contracts, locked liquidity, and plans on doxxing themselves to one of the major smart contract auditors.
Our problem with KODI lies in the high transfer tax used to pay developer salaries and fund other aspects of the project. We are not really a big fan of that, especially paying developer salaries with those funds.
Additionally, most investors probably do not know about the transfer tax, so they will get hit with a 12% fee when they transfer tokens. Furthermore, transfer taxes are generally viewed as bad for the token and good for the community or developer. In this case, most of the benefit of the transfer tax is funneled to the developers, so it’s a loss for holders.
Is KODI a Good Investment?
No, KODI is not really a good investment. Again, the 12% transfer tax increases the amount the token must appreciate to pull a profit, which is annoying.
Projects with similar tokenomics also have a tendency to not do too well (ie. SafeMoon). The transfer tax sounds good on paper, but people will still panic and sell at a loss or they will sell when their profit is high enough.
Another lesser concern we have is that the token is on Binance Smart Chain. This is a controversial take, but there are not many investment worthy projects on Binance Smart Chain. Most projects on Binance Smart Chain are outright scams. Those that are not outright scams just aren’t really that good unless they’re forked from a team on a different chain (ie. Jade Protocol is on BSC, but it’s an Avalanche team).
Is it generalizing?
Yes. However, it does make making a snap decision about picking a project fairly easy.
Finally, we are not confident in the ability of PITCH to generate adequate revenue for tokenholders nor are we confident that the entertainment platform will produce content that people actually want to see.
Overall, there are better projects out there than KODI. KODI is a meme coin trying to do too many things at once. The team would likely be better suited to focusing on one aspect of the project (ie. PITCH, entertainment platform, meme coin tokenomics) than trying to wrap all of these ideas into one mess of a project.
Where to Buy KODI Cryptocurrency?
If you still want to buy KODI, then you have a few options for doing so. You can purchase it on Flooz with a credit card, which we do not really recommend because of the fees.
Our recommendation is to swap BNB for KODI on PancakeSwap – the gas fees are cheap because it’s Binance Smart Chain. The process is not particularly difficult for those unfamiliar with purchasing on PancakeSwap.
Again, we are not huge fans of this cryptocurrency, but we do want to provide information on where to purchase it for those that are interested in it.
That sums it up for whether KODI is a scam or not. We are fairly confident the project is not a rug pull type scam, but the tokenomics of it give it ripoff vibes. As far as its viability as an investment, we find that low because KODI attempts to do too many things at once.
It’s one part meme coin, one part marketing firm, and one part entertainment platform. The project would likely be better off with more focus on doing one thing really well.