OneCoin (ONE) is a kind of cryptocurrency, which in its operating principle is identical to Ponzi schemes and MLM networks, launched by One Coin Limited. It has established itself in the crypto community as a scam and a pyramid scheme. Users filed several class action lawsuits accusing the founders of fraud and misappropriation of investor funds.
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Important!
The OneCoin crypto scam website is closed at the request of law enforcement agencies
Free “cheese” is what people have always wanted, want and will continue to want. After all, few people understand that it only happens in a mousetrap. With the advent of cryptocurrencies in our lives, cryptocurrency scammers have appeared who try to lure funds from inexperienced users by any means.
Users are promised a large income in a short period of time and fed with promises of future millions. Unfortunately, in this case it is not the investors who become millionaires, but the creators of this fraud, as in the onecoin project.
And if we talk about a coin that uses a financial pyramid scheme, the most “famous” one is the OneCoin cryptocurrency, launched by One Coin Limited. In this article we will analyze in detail who and what is behind it, as well as why you should not blindly trust the promised millions.
- What is OneCoin
- History of OneCoin creation
- OneCoin rate and capitalization
- Where to buy, how to store and what to do with OneCoin
- OneCoin ICO
- Accusation of creating a financial pyramid and arrest of management
- Prospects for OneCoin
What is OneCoin
Cryptoscam
OneCoin is itself declared as a virtual currency based on blockchain technology. And the company quite seriously talks about it as an analogue to Bitcoin. But in comparison with “digital gold”, OneCoin has differences that are not at all characteristic of real cryptocurrency.
And if “bitcoin” was conceived as a decentralized system, then the currency in question is completely centralized. It has an emission of 120 billion coins, mined on the servers of the company itself.
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This cryptocurrency does not have a peer-to-peer network, and mining is carried out only by One Coin Limited itself. She also has full control over the database, and operations with the coin can only be performed through a personal account on the website or a controlled platform.
The One Coin Limited company offers its users to “earn money” without special technical knowledge, and, in general, without any knowledge at all. There are several “packages” for this, costing from €110 to €27,500.
Some write that the price of such a “package” can reach up to €118 thousand.
For this money, the user receives a certain number of tokens, which the company itself later offers to send to itself for mining and start “making a profit.” After all, she is the one doing it.
Types of splits on OneCoin
Let’s say that if you buy the Starter package for €110, the investor will receive 1000 tokens. Next, the user can double the tokens through a split. Note that these tokens are not yet the main coin (OneCoin), but a simple intra-platform unit.
And in order to receive OneCoin itself, the user needs to send the purchased tokens for mining to extract OneCoin itself. It is currently unknown how much the mining costs, but as of 2016 it was equal to 63 tokens. That is, if you have 1000 in your account, you will receive 15 OneCoins.
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Official website of OneCoin.
What is a token in cryptocurrency?
A token is a cryptocurrency that is created on the basis of an existing protocol or blockchain. Token - asset or utility tokens. Since they are built on an already working platform, the process is much simpler. Today they are often reproduced on the Ethereum network.
Are divided into:
What is a Utility token?
Such tokens are created for transactions involving the exchange or transfer of an asset, to gain access to services and products. They are not investment instruments and are not subject to the laws, rules and regulations governing the circulation of money.
Security tokens: what are they?
Security tokens are a type of securities and other assets for investment. Subject to the laws and regulations governing the stock, bond and securities markets. There is potential for price growth. Their value is expressed in terms of the equivalent of a set of services or quantity of goods.
History of OneCoin creation
History of Onecoin
The One Coin Limited company was founded in the fall of 2014, and its director until 2022 was Dr. Ruja Ignatova. Then the post of leader was taken by her brother, Konstantin Ignatov, and Pierre Ahrens became the general director.
The company says OneCoin is different from other cryptocurrencies because it is the world's first private blockchain. And to capture the retail sector, the distribution company OneLife was created. In fact, this is an MLM network where each participant has the right to attract new users and make money from it.
According to One Coin Limited, the strategy is aimed not only at making money from investments, but also at establishing a large-scale user network. The company is also trying to promote its currency as a means of payment. In fact, all this is more reminiscent of some kind of modern Ponzi scheme.
Also watch an interesting video about Onecoin crypto scam:
Cryptocurrency scam Onecoin
The term cryptocurrency
Another term for tokens and coins is cryptocurrencies. But this is not always an accurate definition.
Any currency:
- Unit of calculation;
- Value store;
- A generally accepted medium of exchange.
Bitcoin and other coins meet these criteria, but this is not always the case for tokens. For example, a utility token is a service or a unit of service.
OneCoin rate and capitalization
Onecoin rate
Unlike almost all other cryptocurrencies, the rate and capitalization of OneCoin cannot be found on the CoinMarketCap website. This coin is simply not there. All information is located only on the official website of the company.
Have you ever heard of a cryptocurrency whose price has been trending upward for five years? Now we have heard.
At the start in January 2015, one OneCoin cost €0.50. As of December 2022, the price of the cryptocurrency has risen to €29.95.
Finding information about mined blocks and capitalization of the OneCoin (ONE) cryptocurrency is not so easy. And it’s clear why. When you see these unsubstantiated numbers, the word “scam” comes out on its own.
At the end of January 2022, 33,035,550,000 “OneCoins” were mined (after this, the information on the site is not updated, and then you will find out why). At that time the price was at €20.75.
Based on this, the total capitalization of the OneCoin cryptocurrency amounted to more than €686 billion. That is, more than the total capitalization of all cryptocurrencies at the moment ~ $211 billion.
OneCoin cryptocurrency rate
Where to buy, how to store and what to do with OneCoin
Where to Store OneCoin
Unlike regular cryptocurrencies, OneCoin cannot be found on any exchange.
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That is, in order to receive this coin, you need to contact the company and invest in it. After this, the user receives the coveted tokens and the right to earn money from mining.
At the same time, the company generously rewards its investors. Depending on the amount invested, the user receives one, two or three splits. A split is an opportunity to double your coins every 8-12 weeks.
Tokens are stored in a wallet built into your personal account.
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At the moment, OneCoin can only be sold on a platform controlled by the company called DealShaker.
This platform was opened at the beginning of 2022 for online sales of goods and services for the OneCoin cryptocurrency. DealShaker is built quite interestingly: even with tokens on the account, the user will only be able to buy various trinkets with them, and if he wants to purchase a more expensive product, he will have to pay extra.
Any offer on DealShaker is a combination of the OneCoin (ONE) cryptocurrency and the euro. The seller can only accept 50% of the funds, the rest he will receive in cryptocurrency. And when it comes to buying a watch or a car (yes, this is also possible), the buyer will not be able to pay 100% for such goods in OneCoin. Fiat currency will have to be paid in any case.
How to make money on tokens
Investing in a new ICO project is one of the most profitable options for investing in the crypto market.
It is important to choose an investment object, since not all startups are successful. Before buying a token of a specific project, you should study it. You need to understand what technology is offered by developers, how promising it is, and whether it may be in demand on the market.
You can evaluate a new token according to the following algorithm:
- What will it be - a share, a means of payment within the system or a unit of remuneration;
- Find out the features and procedure for its use;
- Under what conditions will the cost increase;
- Can external factors affect the quotes, or does it all depend only on the development team;
- How high is the competition in the niche of services or goods of the project;
- Is it possible for the project to function without it?
- Potential for price growth under favorable conditions;
- How reasonable is the starting price?
We emphasize that you can buy tokens for investment purposes at any stage.
- The first is pre-sale. This is carried out before the start of the project. The developers are essentially selling the idea. At this moment, the price is as low as possible, but it is very difficult to assess the prospects of the project;
- The second stage when you can join the project is conducting an ICO. The risks are lower, but the cost is higher. At this stage, there is already confidence that the project will be launched, since its creators were able to attract the amount of investment necessary for the start;
- The safest option is to buy the asset when a popular crypto exchange lists it. The start of trading on cryptocurrency platforms indicates the recognition of the token by the community. To be among the first buyers, you need to constantly monitor the situation on the market and see which exchange the token you are interested in is added to.
If you want to invest in rubles, you will first have to buy another cryptocurrency, and only then transfer funds to the exchange. This is explained by the fact that platforms that work with fiat currencies (including the ruble) usually add tokens much later than other exchanges.
OneCoin ICO
ICO OneCoin
Despite the statements of the company management that the OneCoin cryptocurrency is supposedly already used by several million people, they decided to conduct an ICO. Users were offered to buy One Coin Limited tokens – called OFC.
From October 8, 2022, anyone could become a participant in the ICO. Why is OFC cryptocurrency needed, you ask. Everything is simple to exchange it for OneCoin in the future. At the same time, the company insisted that investors do not get rid of the coin immediately after release, but hold it in their account for at least a year. So, according to them, it will be more profitable.
Against this background, One Coin Limited announced the opening of its own exchange, XCOINX, where it will also be possible to sell brand new OFCs in the future. The ICO was supposed to end at the end of October 2022, and investors were promised that part of the OFC could be sold as early as January 2022. But at the time of writing (December 2022), there is no news on this topic yet.
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You can track the latest news about the OneCoin scam on our website
True, the exchange is still undergoing mythical “technical work”, and investors are sitting with useless tokens. And, apparently, the company is unlikely to continue to exist.
Accusation of creating a financial pyramid and arrest of management
Arrest of the creators of OneCoin
At the beginning of March 2022, the current leader of the OneCoin cryptocurrency, Konstantin Ignatov, brother of Ruzha Ignatova, was arrested at Los Angeles airport. He is accused of fraud and creating a financial pyramid.
According to the United States Attorney's Office, Ignatov and his sister misled investors around the world, resulting in people investing billions of dollars in the fraudulent scheme. They are accused of building a billion-dollar cryptocurrency company based entirely on deception.
“OneCoin is a cryptocurrency that exists only in the minds of its creators and accomplices”
– said FBI Assistant Director in Chief William Sweeney
He noted that unlike other cryptocurrencies that keep records of investors' transaction history, OneCoin did not offer any way to track the money. That is, this cryptocurrency has no real value.
Onecoin scam
And you need to understand that the arrest of the Ignatovs was a matter of time. The first messages from regulators regarding OneCoin began to arrive in the fall of 2015. First they did this in Ruzha’s homeland, Bulgaria, where they informed potential investors that OneCoin was a fraudulent organization.
Subsequently, similar statements came from the UK, Italy, Finland, Germany, Vietnam, Hungary, Sweden, Latvia and even Kazakhstan. Trading for OneCoin in these countries is prohibited. But this did not stop the organizers from entering other markets in less developed countries.
And if you go to Google trands and type in “OneCoin”, you can see that over the past few years this “cryptocurrency” has been of interest in not the most developed countries of the world, with the exception of Finland, where more than 20 thousand OneCoin investors were affected.
Investors in OneCoin
The company's website states that it complies with the laws of the countries in which it operates and has all the necessary licenses. But financial regulators in different countries say the opposite. One Coin Limited and OneLife Network ltd are in fact trading without licenses and permits, misleading investors.
