Just last week, Sanjay Saxena, the Joint Commissioner of Police at Mumbai told a packed audience at a Moneylife Foundation seminar that if you have lost money to a get-rich-quick scheme, then the only thing to blame is your greed as basic human nature and weaknesses does not change. Despite the fiasco of BitCoin and several other cryptocurrencies, one more virtual cryptocoin OneCoin is being aggressively marketed in India under the pretext of selling educational material and ‘once in a lifetime opportunity’.
According to information received from sources, several intelligent and influential people involved in this 'business' are approaching others under the pretext of offering 'future of payments'. Authorities from many countries like Bulgaria, Finland, Sweden, Norway and Latvia have warned citizens of potential risks involved in business like OneCoin.
OneCoin is marketed as a virtual cryptocoin, based on cryptocurrencies, but without an actual public and transparent blockchain. This is promoted by OneCoin Ltd, an offshore Gibraltar company led by Bulgarian Ruja Ignatova. As usual with several multilevel marketing (MLM) and money circulation operators, OneCoin also says it does not sell any cryptocoin but education material for trading. Members buy educational packages ranging from 100 euros to 25,000 euros and each package includes tokens, which can be assigned to "mine" OneCoins.
According to Wikipedia, OneCoin is said to be mined by servers at two sites in Bulgaria and one site in Hong Kong. In a typical OneCoin recruiting meeting most of the time recruiters talk about investing in cryptocurrency and the educational material is barely even mentioned.
Talking about the hype and commotion around OneCoin, a report from UK-based Mirror
says, "The audience was tempted with a Special Combo Package. You get 506,000 tokens, and six splits turn them into 32 million tokens. The cost was roughly £28,000 and those splits would turn that into £1.2million. And that’s also even if OneCoin doesn’t increase in value – that financial miracle again."
"OneCoin members even have a little sign they make to each other, holding their thumb and forefinger to make a circle. Maybe it’s meant to symbolise a coin. It certainly added to the feeling that this was more of a cult than a sound financial institution. To me the sign looked like the number zero – which happens to be the amount I would invest," the report by Andrew Penman says.
Earlier in July, Financial Services and Markets Authority (FSMA) from Bulgaria issued a warning about OneCoin stating that OneCoin has not received any form of recognition whatsoever from the Authority. "The same is true of the persons who are promoting OneCoin. They do not hold any authorisation or any other form of recognition from the FSMA," the Bulgarian Authority added.
In an article, Insidebitcoins.com
says OneCoin is raising a lot of questions and providing next to no answers. "And the answers we can deduct point to OneCoin being a major MLM scheme are an attempt to lure in people with the words 'cryptocurrency' and 'Bitcoin'. All the while having nothing to do with either, by the looks of it. Use this website at your own risk," it concludes.