Is OneCoin a Scam – My 2 Cents Worth

onecoin-mainName: One Coin

Website(s): www.onecoin.eu

Price: From Free to €18,800

Founder: Dr. Raju Ignatova

 

Bare Naked Scam Rating: 4 Thumbs Down

onecoin-rating-small

Is OneCoin a Scam?

You must be curious as to whether OneCoin is an opportunity that you can dive into. As you know, investors of Bitcoin in the early days became overnight millionaires just by simply trusting on the cryptocurrency. One of the reason for Bitcoin’s success was because of the high demand for the coin.

Will there be any demand for OneCoin? Will OneCoin be the next Bitcoin? In this review, I am going to share with you everything you need to know about Cryptocurrencies and OneCoin in order for you to make an informed decision.

What is OneCoin?

OneCoin is founded by Dr Raju Ignatova in 2014, but has yet to be listed on any Crytocurrency exchange, in other words the current value of OneCoin is zero. OneCoin is basically a Multi-Level Marketing (MLM) Company which distributes Crytocurrencies, much like Global Coin Reserve.

onecoin-what-isOne thing you need to understand is that the risk of investing into a new Cryptocurrency which has not been listed on any exchange is extremely high. One might argue that OneCoin could just be the next BitCoin, but the fact is that preceding the success of Bitcoin, many other new Cryptocurrencies have entered into the market, but failed to mimic the success of Bitcoin.

One good example is Global Coin Reserve. Global Coin Reserve (GCR) has listed its coin, the GCR coin, in a Cryptocurrency exchange in August 2015, but it has lost 98.94% of its value in a short span of 6 months. Imagine those people who were heavily invested in the GCR coin at the very beginning, they would have lost almost everything. You can see screenshots of GCR coin price charts here.

The way Global Coin Reserve work is almost similar to OneCoin. The leaders of the Crytocurrency company will get as much people to signup to their Cyptocurrencies, providing people with a hope to be rich. You need to know that these leaders started to make money on the Crytocurrency even before it is listed on any exchanges. They earn the money from you through a compensation plan which I will share with you below.

Once the Cryptocurrency is listed on an exchange, the price or value of the cryptocurrency is basically determined by the supply and demand, the leaders will have no influence in it.

Now, if you understand the risk of getting into such opportunity, then let us go deeper into OneCoin.

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How does Cryptocurrency work?

Before we go deeper into OneCoin, I thought maybe you might be interest to know how a Cryptocurrency work.

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Now we know what a Cryptocurrency is, lets further understand how OneCoin works.

The OneCoin Product

onecoin-product

It is unclear how much OneCoin you will receive from purchasing either of these packages. It only seem to me that the packages are for educational materials that will teach you how to mine and trade cryptocurrencies. Don’t you think that paying €12,500 for an educational package is exorbitant?

My guess is that you will earn OneCoin when you start bringing in more people to signup with the opportunity. In the compensation plan video below, it explains that you will receive 60% of your commissions made from your referrals in cash, and 40% in OneCoin. So it doesn’t mean that if you invest €12,500 you will receive OneCoin in return, it only gives you the opportunity to earn more OneCoin.

OneCoin Compensation Plan

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As I have mentioned, before OneCoin is listed on an exchange, the value of it is zero. So, the only way that you can make money with OneCoin at this moment is through its compensation plan. Furthermore, there is a risk that OneCoin may not even be listed on an exchange.

If that happens, OneCoin could very well be seen as a pyramid scheme, because there are basically no product distribution in the company. Wikipedia has done a great job explaining what a Pyramid scheme is in the picture below:

guaranteed-sign-ups-pyramid scheme

Some might argue that when you purchase a OneCoin package, there are educational materials embedded into each respective packages, and it should be considered as a product, but if you give it some thought, the educational materials are worthless if OneCoin is not listed.

One thing for sure is that the OneCoin opportunity is not for those people who expects to earn money without putting forth any effort. If you want to make money from the OneCoin opportunity (before the coin gets listed in an exchange), you have to put in tonnes of hard work and effort to enrol as much members as possible.

Why I do not think OneCoin is worth your money, hard work and effort…

The biggest reason why I do not think OneCoin is worth your money and hard work is that in order to make any significant income from OneCoin, you have to purchase at least the “Pro Trader” package which cost €1,000. I do not know about you, but I do feel that €1,000 is rather steep for a business opportunity. Most people would not have that amount of money to start with.

Secondly, the risk of OneCoin being devalued, or not being listed on an exchange is extremely high. I have not seen success from any cryptocurrencies that are distributed by an MLM company. It remains to be seen if OneCoin would ever be successful, but would you be bold enough to take that risk.

Thirdly, you have to be an awesome salesman to promote a “Dream” to others. Think about it, selling insurance is hard enough, but selling a “Dream” is twice as hard. I am just worried that you will have a hard time promoting OneCoin.

Lastly, you might just be seen as a “Conman” unknowingly, if OneCoin never get listed on an exchange. You might even risk losing your friends and family if things doesn’t work out with OneCoin.

So, in my opinion, paying such an hefty sum to participate in an opportunity where there are more cons than pros is not worth it at all.

I am sure there will be many OneCoin distributors who will disagree with me, and may discredit my opinions, but just think about why I am going through these hoops to get my message across to you. I could have made more money if I were to write a positive review on OneCoin, but I didn’t because the main reason for me to start this website is to prevent you from joining business opportunities like this in the first place.

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My Sincere Advice to You

Because of the high risk involved in the opportunity, coupled with disadvantages that you will face as a distributor of a MLM company, I would not recommend you to join OneCoin. However, if you are so certain that the OneCoin will be the next hit, then go ahead with it. I wish you all the best.

If you feel that OneCoin is not for you, but you would still like to know how to make money online, I would highly recommend that you check out my #1 Recommended Online Business Course. In there, you would learn how many people, like myself, achieve success online.

Alternatively, if you are a risk taker and you would like to participate in online trading, I would suggest that you check out this program which allows you to copy and learn from other successful traders.

As always, I welcome your feedback on One Coin, especially from those who experience first hand with the opportunity. You can leave a comment at the bottom of the page and I will be happy to discuss this with you. If you find my article helpful, please help to share it by clicking on the social media buttons (Facebook, Twitter, Google Plus) below.

Your pal,

Jack

My Secret to Online Sucess

About the author

Jack Cao

Jack is an experienced online marketer who would like to extend his help to whomever wants to learn more about building a successful online business. Connect with me on Facebook, Twitter, and Google Plus. Read more about Jack and BareNakedScam.com here...

7 comments
Timothy Curry -

Great article and evaluation. I’ve been following Onecoin for the past 11 months now, and have done quite a bit of investigative work on it, including having attended one of their smaller “conferences,” here in California. Having been in the Bitcoin and cryptocurrency space now for 36 months now, and actually working on several blockchain and “crypto” related projects over the past 2 years, Onecoin CONTINUES to raise more red flags than a national parade in Beijeng! Without exception, I have not met anyone involved in Onecoin who even has a Kindergartner-level knowledge of how crypto-currency or blockchain’s work (with the expception of one prominent person in Onecoin who has been doing some digging, and whom I’ve been talking to). The majority of others involved suffer from ignorant bliss, contrary to sound logic about Onecoin’s players and how they go about their business.

Here are a few links that you may find interesting:
1.) This is one of their official slide-shows. Notice how often they say the word “bitcoin.” Bitcoin actually has utility as both a currency and technology and http://www.blockchain.info demonstrates how often it is usde around the globe. As you mention, Onecoin doesn’t even have a real exchange (www.xcoinx.com is run by them and is a sham for which they “make up” the value, and it is not market driven, at all). Pay attention to slide #7 as this is a HUGE logic fallacy!
http://www.slideshare.net/bharatkarnani/one-coin-official
2.) The biggest media company in the space (which often writes very positive stories about “alt-coins” also believes its a huge scam:
http://cointelegraph.com/news/one-coin-much-scam-onecoin-exposed-as-global-mlm-ponzi-scheme
and
http://cointelegraph.com/news/fool-me-once-top-5-bitcoin-related-scams-for-2015
3.) Beware of Onecoiner propaganda. machine Their upline’s preach a strong arm and dictative approach to anyone or any media source who try to shed light on the scheme. Rather than challenge the facts with logic, they literally are taught to put both fingers in their ears, close their eyes to it and murmur, “lalalalalalalala!!!!!!.” It’s actually quite cultish.

Here is one such example: You will find a whole series of threads going back over the past year pointing out flaws and red flags in the Onecoin ponzi scheme:
http://behindmlm.com/companies/onecoin/onecoin-a-worthless-get-rich-quick-scheme/

What’s worse, is that onecoin, itself, has flooded search engines with the words “scam,” “ponzi,” “pyramid,” etc. It’s really quite sick.

Reply
Cherie -

Hi Jack,
Thanks for this interesting article about OneCoin. I have been asking my friends about BitCoin etc for months now and no one seems to understand them…what they are, how they work. The only thing people know is that some folks have become amazing wealthy because of them.

It seems that OneCoin is trying to copy the success of BitCoin, only because of their business model, they are charging people a ton of money to do it. Since OneCoin hasn’t even made it onto an exchange, how can their people promote it with a straight face? Definitely sounds like a scam to me!

Cherie

Reply
Timothy Curry -

@Cherie & Jack – a quick YouTube search querry will pull up tons of Bitcoin videos. Check out a few of the short ones. Here are a some of my faves to get you started:
1.) “What is Bitcoin? (v2)” – by WeUseCoins (under 2 min.)
http://www.youtube.com/watch?v=Gc2en3nHxA4
2.) “What is Bitcoin mining?” – also by WeUseCoins (under 2 min.)
http://www.youtube.com/watch?v=GmOzih6I1zs
3.) How Bitcoin Works in 5 Minutes (demonstrates Technical, very good!)
http://www.youtube.com/watch?v=l9jOJk30eQs
4.) How Bitcoin Works Under the Hood (longer and more Technical version of the former – 22 min., but is digestible for a layperson)
http://www.youtube.com/watch?v=Lx9zgZCMqXE
5.) Bitcoin explained and made simple | Guardian Animations (3:24)
http://www.youtube.com/watch?v=s4g1XFU8Gto
6.) Bitcoin Cryptocurrency Crash Course with Andreas Antonopoulos – Jefferson Club Dinner Meetup (ABSOLUTELY ANYTHING with Andreas is amazing. I HIGHLY recommend watching ALL his videos, as he explains Bitcoin in a very approachable manner)
http://www.youtube.com/watch?v=JP9-lAYngi4

There is also a fantastic full-length documentary called, “Bitcoin: the end of money as we know it ” – you may be able to find it for free, but otherwise it is on NetFlix

Bitcoin is considered a “journey down the rabbit-hole” for a reason 🙂

Reply
Carl -

Thank you for taking the time to evaluate this and compose your thoughts for others to evaluate.

I am a bit skeptical, but having missed the bit coin boat (and I did have the opportunity to accept bit coin at my business 7 years ago) I am willing to gamble a bit. As with any investment, you should only invest what you can afford to lose.

I do agree One coin gives the impression of a Ponzi scheme, but I also decided to invest in the pro trader package both because I could afford to lose that amount and if One coin is a Ponzi scheme, its one that has worldwide support. I’m hoping the amount of people to draw on will keep it running for a while. Madoff spun his fiction for 20 years, and he had a pretty small pool to draw on, comparatively.

Reply
James Ken. -

Thank you so much Mr. Jack for this wonderful article. By the way I am a Nigerian, an innocent lady (oh yes! innocent in the sense that she might not necessarily knew deep about the onecoine) walked into my Office today after her otherwise wonderful patronage to our services and products, she began to tell us about onecine package. she ended up exciting my colleagues after assuring them that with #70,000 naira they will make as much as #700,000 naira after one year and they exchanged contacts.

But I kept on reminding myself that there’s no easy money anywhere in the world, so I started searching about it and fortunately I stumbled into this article. well I have shared it with them and I believe they can now make an informed decision.

thank you once again.

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