Is Onecoin a Scam?

Is Onecoin a Scam?

Is Onecoin the Next Bitcoin?

There’s a new thing out there called Onecoin.  Apparently it’s the greatest thing ever:

OneCoin is more than just a cryptocurrency. To make it successful and unique, we have created a whole concept and universe to make One a market leader in the crypto world. We offer core financial education on crypto-currency in the OneAcademy, an online exchange, and we partner with one of the hottest and newest hybrid crypto-currencies – the Aurum coin. OneCoin uses the latest cryptographic technology and security standards and has a solid marketing concept – enhanced by the OneLife Plan. The page of their wonder

I have been asked this question a lot recently – Should I invest in Onecoin?  I’ve done some research into it and my honest opinion is no and here’s why:

Onecoin appears to be counter to what a cryptocurrency is – decentralized and open-source.  Onecoin appears to have barriers to entry, either in the form of a financial transaction or handing over of personal information, which wouldn’t make it open source in the strictest sense.  Also, I would not classify 3 or 4 servers as decentralized, most traditional banks and payment method operators run some form of fail safe system which would consist of multiple server locations, this would not make them “decentralized”.

The sheer lack of information on their website is troubling – nothing regarding the nature of the algorithm and nothing regarding the people behind onecoin.After doing some research, it would appear that the people involved have been accused of fraudulent activity in the past.Other things ring alarm bells: the WHOIS registration details are set to private, with the website itself based out of Sofia, Bulgaria.  If any company, especially one that is focusing on finance (and what appears to be multi-level marketing), is not completely upfront about the identity of those in charge, I would walk away.

The “Aurum” coins aspect of OneCoin looks like such BS – they claim it’s backed by 1mg of gold, stored in a vault in Dubai.  But then there’s nothing to back those claims up.  It’s like me walking into a shop, going to the counter to pay and handing them a piece of paper, with “There’s €50 worth of gold in a vault in Dubai that is now linked to this piece of paper” scrawled on it in crayon.Personally, this whole thing looks like nothing more than a ponzi scheme and it’s a shame that people are using the “cryptocurrency” name as a buzzword to generate interest, when in the end, it’ll serve to dirty that name.

We asked Ruja Ignatova (the super awesome businesswoman behind Onecoin) some questions:

  1. So as I understand, Onecoin is mainly centralised cryptocurrency? Centralised mining, centralised blockchain and centralised public exchange? Which components of the Onecoin system are decentralised?

OneCoin will have two phases in development. One is “centralized” while we mine. As we sell the mining rights we have to make sure that everyone who pays let us say 100 EUR also receives the same amount of coins as someone who pays 100 EUR too. So in the beginning we will mine for the network. Once we reach a good development and number of coins, we will open the exchange for other people. The end goal is to make the whole coin public so people can trade on all exchanges, but it has to be fair to the network. We are discussing now with some of the big names if they can audit the blockchain – so that the members and people outside have trust in it

 

  1. This is more philosophical question maybe but you are saying that one of the main reason why Bitcoin is bad, is his decentralised form, many exchanges and because of that volatility and lack of liquidity? In my opinion, volatility is very normal in small mass of usage like Bitcoin today is, compared with fiat currencies. But it has already improved as the usage and trading numbers getting bigger. You think, that you solve liquidity and volatility with centralised exchange? So basically you’ll make another central bank which has theoretical possibilities to control or even change the price, limit transaction or other kind of activities? If so, then how are those possibilities avoided?

 

Now one of the big issues in my opinion is that Bitcoin’s target group is an elite. This are either peple who are very sophisticated (IT knowledge) or people who have enough money to diversify in other assets. It is not a coin for “small” people. So in my opinion targeting this target group and making the coin useable can create liquidity to the market. In the beginning we need the central exchange, as we cannot reach the numbers of bitcoin within a short time if we do not do any central planning, marketing and education of people

  1. How you are doing KYC?

This is the benefit of the centralized approach we choose in the beginning. KYC is done on our website. Whoever takes out more than 2.500 EUR of the system needs to upload the needed documents

 

  1. Who holds the private keys of the Onecoin? Onecoin company, or user itself?

Currently the company

 

  1. What consensus method are in used to process the transactions? Is it POW, POS, POB or something else or is it any? If not, is a mining somehow related with consensus algorithm at all?

POW

 

  1. About mining difficulty. In Onecoin presentation has said that mining difficulty depends on the amount of the onecoins has already mined. So it doesn’t depend amount of mining computation resource? How is regulated variable computation resource and algorithm difficulty then? I mean, how is regulated calculation time of the mining problem?

I am not sure I understand the question here correctly. We definitely try to explain the topics as simple as we can for the network as most people do not understand the technical background – can we specify the question

 

  1. How much will be transaction time of the Onecoin transactions? Confirming time?

10 min

 

  1. How opensourced the whole project is? I haven’t see any github, codes or any other technical materials. One of the main Bitcoin success reasons was its opensource form and big community behind that. If you are closed then how you plan to get together the critical coin usage mass?

see answer on point 1

 

  1. Why you don’t accept Bitcoins or any other cryptocurrencies as a payment method? They are not support by KYC is a wrong answer :). 

We are thinking about this actually – but until now there has been no demand for this from the members

 

  1. Regarding the MLM system, as I understand, the main product what you are actually selling is the educational materials?

yes

 

So this is why I have no faith in Onecoin and I do not suggest anyone investing in it.  Also the Onecoin people are spreading rumors that the members of the Estonian Cryptocurrency Association have invested more than €20 000 into it – which frankly is not true.  We posted our opinion on the Estonian Cryptocurrency Association website and received an angry letter from them shortly after publishing it.  So if this really is a legit money making machine that will solve all of the problems of society then why do they need to make things up, I wonder…

If you are interested in cryptocurrencies – read about the real thing! Also an updated version of this article on Steemit.

P.S. Steemit is pretty f*ing cool!

Why don’t you get yourself the real thing instead – Coinbase will give you a tenner when buying some coins here! If into trading my favourite platform for Bitcoin is SimpleFX.

 

Liina Laas

Member of the Board

Estonian Cryptocurrency Association

 

 

64 Comments

  1. Does sound scammy. Ripple and Bitcoin are the only good coins all others cannot be trusted

    Reply
    • there are many other great coins also like peercoin, tipping coins, dogecoin, reddcoin, fedora coin etc

      Reply
      • Are these all safe to be invested?

        Reply
        • I invested in OneCoin and i can say, that it is a great and correct company. I’m already earning with it. Of course you never know which business will stay alive for a long term. Investment is always a risk that’s why a person needs courage for this. Everybody makes his own choice…..

          Reply
          • That’s great to know. Have you already made a profit ?

          • i have also invested in one coin and made over 1800 euros in 6 months and also mined over 18,000 coins at todays value of 7 euros per coin that is 126,000 euros and i invested a total of 8,000 euros not bad invesment in 6 months right

          • Sounds great. So you invested 8000€ and your profit is 1800? How much of that have you managed to withdraw?

      • Please explain to me all of those. Are they legitimate? What money can I make?

        Reply
    • Will you please write to me. I am new at this. I am a member now of One Coin. I am really apprehensive about all I’m reading today. One Coin..a. Scam? Or not?

      Reply
      • Hi,

        My opinion is I’d rather stay away from it – it appears to be a standard pyramid scheme as what you are paying for is essentially “coaching” and you earn credits for getting new users. Which in itself is not evil in any way, there are many multi level marketing schemes that are legit. But I don’t see any benefit in this. Also it hasn’t got much to do with the essence of cryptocurrencies. My advice is – proceed with caution.

        Reply
        • You obviously haven’t read much about OneCoin, as receiving bonuses for getting new clients to join is only one part of it as the value of the coins you mine are continually going up, which means your investment is going up, just like bitcoin that started at $0.20 and increased in value to $1004, though decreased in value and stabilised at $608.80.

          OneCoin has seen the errors that made Bitcoin plummet, which would lead to a healthy investment increase without the downsides.

          Reply
    • Not true I Omar suleman invested in one coin on 28th of Jan 2016 £27900 I have made £38900 yes I got the money only shit thing is you can only take 160 Euro a day and get charged 3 Euro to transfer in your account

      Reply
      • And how much money have you actually gotten out of there? With a limit of 160 per day it will take you 245 days to withraw your money (that is if they don’t declare bankruptcy or disappear before that) and will cost you 730€ If this is a legitimate cryptocurrency, why can’t you withdraw your money? I make a lot of profit with Bitcoin and other cryptos, no one is restricting me from using my money. They promise to make people into millionaires. How can you possibly get your millions with a 160€ limit per day :D?

        Reply
        • Liina far as I know they are restricted the withdraw to 60 or 160 euros per day depends of packet ,and they are doing this beacouse at this moment they are not on the stock market and the coin cannot be trade yet . The reason is untill they have a big ammout of coins to go out in the market , the price will not drop down by someone selling a lot of coins so far as I understand the price will rise up (beacouse noone can withdraw a big ammoint of money at one click) until they will be able the open the coin to the market when you can trade it buy it and sell it how much you want.

          Reply
          • Yes they have to restrict until they go public in 2018- Otherwise everyone would cash out at todays rate. Also the company have started to offer IPOS Initial Public Offer ! I have been part off one coin for 3 months and so far no problems/ With one coin it is not public until 2018 and is not on coin market cap the reason for this is a lot off crypto currencies went public and they were not successful as bit coin was. One coin uses KYC and when it does go public with 10 million members I don’t see it failing , From this month merchants are coming on board. This is a plan that is actually working so far… The reason why people are put off is because off the Binary compensation plan. My opinion, Yes their is always a risk regardless what business or cryptocurrencey you choose to do. Very good opportunity too miss if one coin does go public. Drop me an email if you would like further information.

          • Legit crypto exchanges also use KYC. Otherwise everyone would cash out – that is how trading works. If you have a genuine currency, why stop people from selling? Unless you know, it’s a ponzi…

      • Thank you very much Omar for this nerves calming answers… I almost run out of one coin because of this articles. One thing I know is that, one coin is using modern day compensation and marketing plan to win the market

        Reply
    • Scamming up OneCoin in order to promote Coinbase! Seriously??? Talk about honesty…

      Reply
      • Onecoin has successfully scammed itself up completely on its own 🙂 I did indeed add the link to coinbase as I was getting a lot of emails about this article and asking where is the best place to get Bitcoin.
        You’re welcome people!

        Reply
    • DO NOT INVEST WITH 1COIN or OneLife as they recently transferred the name to because of too much criticism. I invested 900 EUR, I have never seen a single dime back, these are only numbers you are seeing on the screen, dont be fooled, STAY AWAY, all those people on this forum that are saying its good, they are working with 1Coin

      Reply
  2. and banx and bitshares and 42 looking good out the gate

    Reply
  3. A lot of the information you say Onecoin don’t provide re it’s ownership and founder is readily available if searched. I don’t think your review is really argues the points fully. It’s mire a case of spreading doubt it mud slinging easily done. So whats the real issue here could you have an association with a payments system company that stands to loose massive market share should cryptocurrencues start to take over from hard cash? There’s a balance to be struck.

    Reply
    • This is my opinion on Onecoin. I fully support the growth and spread of cryptocurrencies but I don’t really consider Onecoin as what cryptocurrencies stand for. I am a member of the board in the Estonian Cryptocurrency Association and do work towards promoting the use of cryptocurrencies. However I have my doubts on Onecoin – the product that is essentially being sold is education which is pointing towards it being a pyramid scheme – which is totally fine but I personally would not invest in it and also what raised our concerns were the lies being told. For example in the Estonian community they are saying that members of the Estonian Cryptocurrency Association have invested tens of thousands of euros into Onecoin – which simply isn’t true. Also our confidence in Onecoin wasn’t really heightened after a chat to their CEO. If something is legitimate I would like to ask what need is there to spread lies and rumours. I personally would not invest or get involved in Onecoin. That is my opinion, who knows I might be missing out on the biggest goldmine in history but hey…

      Reply
      • So what else can one get involved in like this where you can make money and where its totally legitimate?

        Reply
        • There are plenty of legitimate cryptocurrencies about. Right now the price of Bitcoin for example is low – a great thing to invest in for profits.

          Reply
      • Interesting information. There is one thing to always consider. The same way Bitcoin can’t be blamed for what some people say or do. We all know of the news where some people have been scammed buying bitcoins. That had really nothing to do with what Bitcoins stands for or is. The same goes when information is being spread by some members of a community. If the information would come from the company owners I would say Houston we have a problem. But controlling what thousands of community members write or say is somewhat impossible. So with all information comming, good or bad, we need to use some criticism. My thoughts

        Reply
      • Liina. I have been part off one coin for 3 months. I would advice you to reconsider about one coin it does have potential.

        Reply
        • How much actual money have you got out of it?

          Reply
  4. Apparently the Owner and CEO ‘s name is Dr. Ruja, she is a lawyer who also wrote 2 books on The Importance of Educating Yourself on how Monetary Systems Really Work Behind The Scenes and What To Do to Protect Yourself with Digital Currency. Apparently the Only International Global Currency Owner To Be Featured On The Prestigious Cover of The International “Forbes Magazine”. Does anyone know anything about this information?

    Reply
    • She was supposedly featured on the cover of bulgarian Forbes. Forbes gave a official statement that it was not true, showed the real cover of that issue and noted that the cover with Raja that onecoin actively circulate is a paid advertisement. If they are a legit company, why would this be needed…

      Reply
  5. Ponzi scam. Period. The Forbes cover is a paid advertisement and the cryptocurrency market cap their sellers post is a fraud. OneCoin isn’t even in the top 100 much less #2 behind Bitcoin. My advice? Run.

    Reply
    • Dude, Onecoin is the second next to BItcoin, look at this website http://www.xcoinx.com/.
      How do you explain it a scam ?

      Reply
      • Hahaha
        Xcoinx.com has no source, no contact information, no advertisement. It’s also the only cryptocurrency market capitalization site that has ever listed One Coin. (Go on, try to find another. I know I tried)
        Over 1 billion of market capital and not all over the net? Surely you jest.

        Reply
      • Are you serious dude??? WTF, xcoinx.com is a subsidiary partner of 1Coin, so why would i trust anything from XCOINX if they are hand in hand with 1Coin

        Reply
  6. In one of the replay’s Liina asked if charlie has made a profit. Here is my 3 month profit overview. Joined 3 months ago with 530e package. After 2 months received my OneCoin’s. For 530e i received 916 OneCoin’s. From June 15, 2015, inside marketplace is open for trading between members. As of Sept.13, 2015, selling price is 1.85e.

    After 3 months, my profit is: 530e = 916 OC x 1.85e = 1694e – 530e = 1164e.
    I have withdrawn cash to my personal bank account twice. Arrived after 3 business days.

    About legit questions. Here are two documents about blockchain audit and bonus plan legislation.
    https://dl.dropboxusercontent.com/u/59679754/Legal_Opinion_Germany.pdf
    https://dl.dropboxusercontent.com/u/59679754/Audit_May2015.pdf

    To meet the owner and CEO Dr. Ruja Ignatova, you can attend the event in Macao:
    https://www.onecoin.eu/news/details/onecoin_macao

    All the best,
    .a.

    Reply
    • .a every member of one coin has confirmed that you can only withdraw or sell around €140 worth each day….
      So although you claim to have made €1164 how much of this have you actually transferred back to yourself?

      And more importantly how long did it take you to take your money back out?

      Your claim of transferring your profits over in two single transactions contradicts what’s being said by other members….

      Reply
  7. I just attended one of their meetings and they claimed that ebay accepts 1coins. They must think I was born yesterday.

    Reply
  8. Hi Jonathon.
    I do not know in which meeting did you participate and who was that brave person who said “ebay accepts onecoins” .As much as i know it is totally not true! ……or you misunderstood something!
    I’m a member of onecoin and after one and a half year i’m still stating that OneCoin is the greatest company in the market nowadays! It was a big event with the founder Dr. Ruja Ignatova a few days ago in Hungary. She talked about future plans as well…..amazing…..if somebody interested in it i can send some video in privat message.

    Reply
  9. Hi Liina Laas,
    Very Sorry i did not reply sooner. My answer for your question above: Yes i have already made a profit…..i have several acoount and i ask for withdrawal my bonuses. Sometimes i buy also Tokens from my bonuses. I sold some of my onecoins on the inner exchange, when i have needed more money, but normally I keep my onecoins for the future.

    Reply
  10. This is for those low life loser in here.
    JACK MA CEO Alibaba SAID.

    Jack Ma, founder of Alibaba said “The worst people to serve are the Poor people. Give them free, they think it’s a trap. Tell them it’s a small investment, they’ll say can’t earn much. Tell them to come in big, they’ll say no money. Tell them try new things, they’ll say no experience. Tell them it’s traditional business, they’ll say hard to do. Tell them it’s a new business model, they’ll say it’s MLM. Tell them to run a shop, they’ll say no freedom. Tell them run new business, they’ll say no expertise.
    They do have some things in common:
    They love to ask google, listen to friends who are as hopeless as them, they think more than an university professor and do less than a blind man.
    Just ask them, what can they do. They won’t be able to answer you.
    My conclusion:
    Instead of your heart beats faster, why not you just act faster a bit; instead of just thinking about it, why not do something about it. Poor people fail because of one common behaviour:
    Their Whole Life is About Waiting.”

    Reply
  11. Lina, loved reading your post.would like to talk more.
    Will you email me kindly?
    Ismailpatel1982@gmail.com
    Greatly appreciated

    Reply
  12. Boy – you guys are truly missing the boat. A new algorithm is being created that will allow the creation of 120 billion coins. One million merchants is the goal. You keep looking for reasons why not. Look for reasons why. Internet is the avenue for lies and negativity. By the way, she is also the cover story for the February edition of Financial IT magazine. I have the magazine in the protective plastic. It’s real. One day when it’s too late.

    Reply
    • Jonathan

      You’re clearly missing the whole concept of coin valuation here!
      If today there are 60bil coins with a total (hypothetical) worth of 408bil (60X6.8)

      When the company offers one of their splits and generates 60bil more coins for a total of 120bil coins the TOTAL NET WORTH STILL remains at 408 bil!!
      This value does not just increase with the creation of more coins it DECREASES it! Because now there are 120 bil coins worth the same 408 bil therefore 408/120 = 3.4 each coin! Halved!!

      This is exactly the same principle as a central bank printing more money for circulation, called quantitive easing.

      I suggest you look this up.

      This whole company is spreading false information and deliberately misleading non technical and naive people by using the latest buzzwords to trick them.

      Naz

      Reply
  13. Is it possible that someone not connected with onecoin did this? What about all the money laundering and buying and selling of drugs using Bitcoin? Bitcoin had no control over this and it wasn’t their intentions. There is evil in this world every where and you have to be able to identify it. Look up onecoin’s KYC procedures. This is to protect the company and it’s affiliates.

    Reply
  14. I do plan to invest on OneCoin. MLM doesn’t bother me, but as a technical savy I just can’t get any info on where the servers are located? Is it a fictive or true mining… Please any lead

    Reply
    • I am pretty sure that the mining is fictive. There is no legit info on it at all. and who’s mining it?

      Reply
      • Yes I’m doubting that it is. It can be true but what’s the point of hiding it. Hiding it only makes me think that it’s fictive and at the end a ponzi scheme

        Reply
  15. Liina and/or anyone else, I have been affiliated with OneCoin for about a year now. I’ve listened to and watched so many people both co-affiliates and people outside OneCoin. What a wide spectrum of negative and positive questions and statements being made. It is amusing to me, especially when people try to influence on speculation and not fact. Yes I don’t know everything but I do know enough in a year’s time to dissipate the anxiety I experienced in the past. I’ve seen great testimonies from many people that were where I was a year ago. If any of you just need questions answered, I will answer them and if I can’t, I will reach to the top to get them.

    Reply
  16. Jay, you are absolutely correct. Unfortunately people ruled by an inability to achieve truthful information and stop at skepticism miss out. Exactly the same way people doubted and missed out on Microsoft.

    Reply
  17. I think you need to define what makes a system a cryptocurrency. Bitcoin came with decentralization and pseudo anonymity but that does not mean we can’t make a cryptocurrency that is centralized and KYCed.

    Reply
  18. You sound just like a Bitcoiner. So if you spent 900 euros, tell me what package or packages you purchased. You would have had to purchase 4 packages to equal 900 and if you did that, you made a very unwise decision and didn’t do the research. It doesn’t add up. You sound like someone I or anyone else should not take advice from.

    Reply
    • “I’ve seen great testimonies from many people that were where I was a year ago.”
      -> definite ponzi scheme, drives via reassurance.
      sorry forever whoever put money in latest.

      Reply
  19. By the way, Ruja announced OneLife will be going public in the 2nd quarter of 2018 and the merchant E-commerce platform will be up soon.

    Reply
    • can we say for a certainty that onecoin will succeed in going public next year, considering all the negative image it has been having from many?

      Reply
      • I think it is safe to say it is pretty dead now…

        Reply
  20. How about you forward to me where I said I spent 900 euros before you call me unwise. You sound like a typical internet junky spreading false information.

    Reply
  21. I reviewed all my posts and not once did I say 900 euros. I don’t post lies unlike some people. I didn’t look at the posts from the person named Jonathon (spelled differently than mine) as I don’t have the time to but there’s a chance he may have written it. I will tell you this, I would have been able to tell the difference in spelling of names and would have addressed the correct person unlike you the negative person. I was going to stay positive and write the word un-positive which isn’t a word but you would have had a hey day in that. Get my drift!!

    Reply
    • Sorry, what is this in response to?

      Reply

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