Elements – Born to fail?

Nowadays, most stores have their own sort of loyalty system, which rewards returning customers. Most systems use points, which can be accumulated and spent on a product. The problem Elements wishes to adress is the follwing: You need to spend high amounts on one store in order to be able to claim a reward. They want to solve this issue by introducing an universal reward coin.

Overview

Elements released the following video:

We recommend you have a look at their official website.

Why it won’t work

There is no need to talk about any key features or similar, as it is fairly obvious why this coin won’t be used.

Price & Hassle

As a store owner, why would you want to pay your customers using Elements instead of your own system? Your own system works just fine, makes sure your customers return and it doesn’t cost you a cent to give out points. However, mining Elements costs you because you need to buy a miner and pay its electricity. For a store, there is no real benefit to using Elements. In the video, they talk about customers having to spend a lot of money in order to receive rewards. If this were the case, making a cheap reward is much easier than implementing a cryptocurrency.

Some questions

Just asking these questions should make you realize, that it makes zero sense to implement Elements.

What happens if a customer returns an item? Does he keep the Elements or do you have to make him send the Elements back?

Why would store A have to give the customer his “reward” if he bought it at store B?

Why not use a “normal” cryptocurrency?

If you give him a coin that’s worth money, why just not give him cash?

What if store A gives out 10 points per dollar spent but store B only 5?

Conclusion

Elements is just another generic cryptocurrency. In its current state, it’s absolutely unnecessary and will not be used by stores. 

 

Comments

letsforkk

owned by AMIT BHARDWAJ – MCAP, GB21

19. February 2018

Gb

Same creator as mcap

2. February 2018

Genésio

ELM withdraw not completed
It has been more than 10 hours of the transaction, and so far no minted block has been found. What is happening?
From: Cryptopia to Hitbtc wallet

TXid: d8c6b9744143558c3d106b0258627ec9318ca2eb79e6c2569fae2eb875c867dc
Address: DQZf8cPTfEaPYPUWryZZYYig58uKwhT3to

16. January 2018

Anonymous

Wouldn’t the cheating element be eliminated if the points for the purchase would only be rewarded after the return period had expired?
Example:
customer buys a TV for 2000 bucks, – gets x amount of points allocated to his elements wallet, but these are not spendable until the TV cannot be returned to the store anymore. If The purchase is returned prior to 14 days or 90 days or whatever return policy the shop has, then the x amount of points get removed from users account.

if the same users attempts similar things too often, they can be flagged and reward amounts or percentages reduced due to high risk customer behaviour.

12. November 2017

Evan

Yes that could be a solution, however this would require the Vendors to use a blockchain PoS System with ELEMENTS integrated. Otherwise, they could just always cancel the coins because their system isnt transparent like the blockchain.

Also the Elements team hasn’t mentionned anything of that in their Whitepaper.

So if you, as a random user, can come up with a good idea which they never even though of, it just shows that they are not serious about this :)

12. November 2017

TeamELM

Answers for your analysis – Which clearly shows you lack of knowledge about Loyalty industry:
===========================================================================

What happens if a customer returns an item? Does he keep the Elements or do you have to make him send the Elements back?
@TeamELM – Reward points have nothing to do with purchase and returns

Why would store A have to give the customer his “reward” if he bought it at store B?
@TeamELM – This is how rewards coalition program work; First it provide customers with more choices and second your brand get recognition among non exiting user base; Advantage with Elements is that it provide non-frictional coalition, as no single company directly/indirectly get any advantage or have any friction with any coalition partners

Why not use a “normal” cryptocurrency?
@TeamELM: The community of companies and users are focused on a particular industry; So nobody is saying to not use any other currency, but a universal focused coalition like this have many advantages over cryptocurrencies, card based loyalty programs or app based loyalty programs

If you give him a coin that’s worth money, why just not give him cash?
@TeamELM: You have to start moving your thinking towards digital currencies, first its the need of the hour second loyalty points are not cash, its more like utility tokens

What if store A gives out 10 points per dollar spent but store B only 5?
@TeamELM: It doesn’t matter, because here P2P exchange logic comes in play; one person is buying and other is selling in the whole ecosystem, so it doesn’t impact either of them

A few very important points of our strength I want to mention:
– ELM teams are not technology noobs, a hell lot of big names from the market are joining hands to bring forth this ecosystems
– ELM is not a money hungry scam, so we never needed to Launch an ICO like every body else; We have enough funding to sustain it for a very very long time
– ELM mining hashrate is already being running in 2-7Ths of X11 mining; thats 2-7% of ETH mining size…

FINALLY, My request is to stop being so judgemental about ELEMENTS, it have just started! You have no idea how many vendor partners have already being testing ELEMENTS ecosystem with their system & soon to be publishing a huge PR campaign! SO PLEASE WAIT AND WATCH

Regards,
Team ELM

7. November 2017

Evan

Hello,
thank you for taking the time to reply to this article.
First of all, we didn’t accuse you of being a scam.
With that out of the way:
1: Okay so you buy a 2000€ TV, get tons of points, return it for the money and keep the ELEMENTS? Seems legit.
2 and 5: This forces all the shops of doing exaclty the same thing. No big shop will do that.
3: So a “focused coalition” using ONE cryptocurrency is better than all the cryptocurrencies?
4: Well if these utility points can directly be exchanged to cash using trade sites, that doesnt make sense.

Regarding the points you wanted to mention, could you back them up with some proof? “A hell lot of big names” isn’t enough.

Regards,
Evan

7. November 2017

Anonymous

Can you Please try to fix the wallet never Sync keep doing time out I have a lot of coins and can’t move to anywhere so help please

6. February 2018