OneCoin Scam? Yes It Is In My Opinion!
Unregulated digital currencies are a hotbed of interest for people looking to make money. With the recent raid of UFUN and the shutdown of GemCoin as highlights, digital currencies have become a common component of online scams. My subscribers have requested I take a look into OneCoin. Here is what I have found.
Update: The Italian Competition Authority has halted One Network Services Ltd. sales activities, the company which has been promoting the OneCoin scam in Italy.
June 10, 2015 Bank of Hungary issues warning on OneCoin pyramid scheme.
OneCoin Scam Claims
We make it possible for everybody to access and understand the industry of virtual currency and profit through our unique online trading academy.
We offer a high-income opportunity with an extensive bonus program connected to the best lifestyle awards. We offer our traders a one time opportunity to profit from holding the two of the hottest and most innovative products in the emerging crypto-currency market – OneCoins and Aurum Gold Coins, an unique hybrid currency that is backed up by real and solid GOLD.
By joining the One concept, you not only get the best online training on how to profit from crypto-currency, but moreover you position yourself in an unlimited revenue generating program, providing you with all the tools you need to succeed.
Here is how OneCoin is presented:
OneCoin Scam Reality
OneCoin Founder and Owner Dr. Ruja Ignatova
Ex-President Nigel Allan
Master Distributor Sebastian Greenwood
OneCoin Ltd, Suite 2B, 143 Main Street, Gibraltar, GX11 1AA
Here is how OneCoin is described by the company:
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 OneCoin team is running events throughout South East Asian, Europe, India and Africa. Their goal is to build interest in their digital currency and money making opportunity. Two of the major participants in this company have been involved in multiple scam businesses.
Do not deal with Ausante as it is unlicensed in Australia. Ausante has made unsolicited calls or sent emails about investing, financial advice, credit or loans and does not hold a current Australian Financial Services (AFS) licence or an Australian Credit licence from ASIC. – Source Moneysmart.gov.au
Here is what happened to the OneCoin president Nigel Allan:
Please be aware that due to breach of OneCoin business policy, Mr. Nigel Allan effective from 01 of January 2015 is no longer acting as a President of OneCoin. With respect to the above, please be informed that , Mr Nigel Allan as of Tuesday 24 February 2015 is officially terminated from developing or promoting any network position with OneCoin.
Given the above we hereby kindly ask all members to be careful when conducting communication with Mr. Allan.
OneCoin – Legal and Compliance
I would like to add some personal words to the announcement above.
Nigel has betrayed my trust, proven to be illoyal and living up to his online reputation. Therefore I have decided that he has to leave the company immediately and has no place in the OneCoin network.
After his track record I assume it will be very difficult for him to find a new project.
– Source Facebook
The OneCoin blockchain is private and the algorithm is unknown. In my opinion, this company is not worth placing your money or trust in.
Rookie Price: Free – The Rookie is a free package that includes information on OneCoin, the e-book: Think and Grow Rich and a newsletter regarding the development of OneCoin.
Starter – 1 split
Price: 100 Euro
The Starter includes the first level of the OneAcademy online education program. It is an introduction to financial products and trading and provides the student with online reading materials, video presentations, quizzes and certificate to start exploring the OneExchange.
Trader – 1 split
Price: 500 Euro
The trader package includes both level 1 and level 2 of the OneAcademy online education program. This package is for the people who wish to start learning about trading with asset classes such as gold and crypto-currency among others.
Pro Trader – 1 split
Price: 1000 Euro
Tokens: 10 000
The Pro Trader package includes levels 1, 2 and 3 of the OneAcademy online education program. After completing these courses, you will achieve intermediate trading skills that can help you profit from mining and trading OneCoins.
Executive Trader – 1 split
Price: 3000 Euro
Tokens: 30 000
The Executive Trader package include levels 1, 2, 3 and 4 of the OneAcademy online education program. This package provides a detailed description of tools.
Tycoon Trader – 2 splits
Price: 5000 Euro
Tokens: 60 000
The tycoon trader package is the ultimate product package, it includes all the 5 levels of the OneAcademy online education program.
Premium Trader – 2 splits
Price: 12,500 Euro
Tokens: 150 000
The Premium Trader package is the ultimate product package for people interested in mining and cryptocurrency, it includes 6 levels of the OneAcademy online education program.
Festival – 2 splits
Price: 18,800 Euro
Tokens: 250 000
For a limited amount of time, starting on November 9th, 2015 and ending February 8th,
2016 OneCoin gives you a onetime opportunity to grab the Festival Pack.
2 additional splits only if you upgrade from Premium
– Source Onecoin.eu
OneCoin claims that they are not selling crypto-currency, only “training material.” The OneTokens are simply a bonus that you can redeem for mining OneCoins. The OneAcademy training packages have now been found to contain plagiarized material. See the comparisons by benzmith (PDF)
A partial list of books they have plagiarized from:
(The PDF page number is just where the plagiarism was detected from the sample. Content above and below the discovery is most likely infringed as well)
- Bitcoins, litecoins, what coins? A Global Phenomenon – John Stevensen -€2.74 (Level 2)
- Gold Trading Boot Camp – Gregory T. Weldon €24.99 (Level 2)
- High Powered Investing for Dummies €18 (Level 3)
- Investopedia – Free Content (All Levels – Significant amount)
- Technical Analysis for Dummies (Level 1 & 3)
- The Collapse of the Dollar and How to Profit from It By James Turk, John Rubino €10 (Level 1)
- Rich Dad’s Guide to Investing in Gold and Silver by Michael Maloney (Level 1).
- How does the stock market work? by Pauline Estola (Level 1 First Paragraph)
- Personal Finance For Dummies (Level 2)
- Crypto Mining Blog (Level 2 Package) Some words were replaced (e.g. “fiat currency” was changed to “normal currency”)
- Fractured Hope by Sipho Mzolo (Level 2)
- Financial Crime and Gambling in a Virtual World: A New Frontier in Cybercrime By Clare Chambers-Jones, Henry Hillman (Level 2)
- Crypto Anarchy By Isaak Crofton €25 (Level 2)
- How A BitCoin Transaction Works Infographic. (Level 2)
- Bitcoinmining.com FAQ: What is BitCoin Mining (Level 2)
- Bitcoin.org FAQ: Can bitcoins become worthless? (Level 2) Last Paragraph
- Commodities For Dummies by Amine Bouchentouf (Level 1 p42)
- Candlestick Charting Explained by Gregory L. Morris with Ryan Litchfield €32 (Level 4 p45-p58)
- Innovation Expedition: The Future of the BitCoin (Blog) by Stephen Murgatroyd (Level 4 p67)
There are many more passages that are copied from ebooks that are not readily searchable. Ruja has sourced additional material from behind paywalls or ebooks that have not been web indexed or scanned by Google Books. – Source Onecoinscam.com
The “products” are the instructions on how to make money in this scam. The money from new recruits is what is used to pay the people that are participating in this Ponzi scheme that is linked with a pyramid recruiting scheme. There are no retail products for you to sell.
1. Direct Sales Bonus. On all personally generated sales you will receive a 10% bonus based on the Business Volume (BV) associated to the various packages.
The members that join ONE with you as a sponsor will be placed on your Right or Left side. We let you decide, if you would like to place them alternatively or at a preferred side.
2. Network Bonus. You get paid 10% of the Business Volume that you accumulate on your weaker side. 60% of these payments will go to your cash account, 40% will fund your mandatory account.
Depending on the package you have – you can earn matching bonus on up to 4 Generations and up to 25%! Qualification: 2 x personal sales of Trader Package or higher, 1 left and 1 right.
Trader 10% 1 Generation
Pro Trader 10% 1 Generation 10% 2 Generation
Executive Trader 10% 1 Generation 10% 2 Generation 20% 3 Generation
Tycoon 10% 1 Generation 10% 2 Generation 20% 3 Generation 25% 4 Generation
To withdraw money you will need to give OneCoin the following information to verify your account:
- A government ID with your picture on it.
- A bank statement with your full name on it.
- A proof of address which can be a utility bill.
In my opinion, the compensation plan is a clear pyramid recruiting scheme. The money that is made is from new people recruited into the scam. They use the history of the increasing value of bitcoins to get you to invest your money in this scam.
Average income or value from the OneCoin IMA Compensation System, the Training Package information, or the trading of OneCoin rewarded tokens has not been established.
You may return purchased OneCoin Products in the following circumstances (excluding personalized or customized items):
1. The purchased package may only be refunded to You in case You have not logged in for the period of 14 (fourteen) days.
2. No refunds will be made after You have logged into Your account. By doing this we consider that You are accepting our conditions and no refunds of Your payment shall be made.
3. You have the right to withdraw from this Contract only if You have not logged into Your account, started using the platform and gained access to the product. – Source Onecoin.eu
OneCoin Scam Conclusion
In my opinion, OneCoin is a Ponzi scheme that is linked with a pyramid recruiting scheme disguised as a new digital currency. Any money you spend will not be refunded once you login to your OneCoin account. They use the history of the increasing value of bitcoins to sucker you into their scam. Each individual who profits does so primarily from the payments of others who are themselves making payments in order to obtain their own profit. Avoid the OneCoin scam.