Is OneCoin A Scam? - Technical Analysis
TL;dr: People should refrain from any type of Pyramid Scheme especially when it comes to Cryptocurrency:
Onecoin is a Cryptocurrency that has been dubbed as Ponzi Scam and the evidence surrounding it is considerate. The way it works is that members buy training packages that come up with "tokens" and these tokens can be utilized for mining. After mining has been completed Onecoins will be credited to your account which will depend upon the number of tokens you have placed as well as the amount of difficulty to solve a problem.
The following are few of the concerns raised by the cryptocommunity surrounding Onecoin:
However, even in a Privateblock chain read permissions can be made public which would allow them to view the transactions. Despite of claiming that their business model is transparent, they have opted for private blockchain.
ii) Cryptocoins (Bitcoin in general) solve a common problem i.e. how to inject new currencies into the system without causing inflation. The process of creating a new coins is referred as minning which generally involves solving of complex mathematical problem whose complexity will grow as more and more people try to solve it.
This is done by utilizing CPU processing power in order to solve these problems. There is not enough evidence about how mining takes place such as the algorithm and servers that are being utilized for mining.
iii) Almost all other cryptocurrencies such as litecoin, namecoin, dogecoin, dashcoin, ethereum etc can be traded with each other on various platforms such as Bitfinex, Poloniex, btc-e etc. Whereas for Onecoin you will not find a single exchange that would allow you to trade Onecoin with any of these cryptocurrencies.
iv) Several similar MLM (Multi Level Marketing) cryptocurrencies in past have been busted and exposed, one example I can quote is USFIA's Gemcoin which was approximately 32 million dollar ponzi scam. Onecoin is based upon similar concepts of affiliate marketing.
v) Several Financial watchdogs such as UK's Financial Conduct Authority, German's Federal Financial Supervisory and Markets Authority have already warned against Onecoin.
vi) Several Countries have started a crackdown against Onecoin and have seized accounts for Onecoin payment processors. These countries include India, Thailand, Bangladesh, Germany etc.
To invest or not is however a decision that I will leave to your choice.
Onecoin is a Cryptocurrency that has been dubbed as Ponzi Scam and the evidence surrounding it is considerate. The way it works is that members buy training packages that come up with "tokens" and these tokens can be utilized for mining. After mining has been completed Onecoins will be credited to your account which will depend upon the number of tokens you have placed as well as the amount of difficulty to solve a problem.
The following are few of the concerns raised by the cryptocommunity surrounding Onecoin:
Concerns Over OneCoin CryptoCurrency
i) Onecoin is based upon a private blockchain. A private blockchain is kept centralized to an Organization and only that Organization has write permissions to the blockchain as opposed to a public blockchain where anyone can read/write to blockchain.However, even in a Privateblock chain read permissions can be made public which would allow them to view the transactions. Despite of claiming that their business model is transparent, they have opted for private blockchain.
ii) Cryptocoins (Bitcoin in general) solve a common problem i.e. how to inject new currencies into the system without causing inflation. The process of creating a new coins is referred as minning which generally involves solving of complex mathematical problem whose complexity will grow as more and more people try to solve it.
This is done by utilizing CPU processing power in order to solve these problems. There is not enough evidence about how mining takes place such as the algorithm and servers that are being utilized for mining.
iii) Almost all other cryptocurrencies such as litecoin, namecoin, dogecoin, dashcoin, ethereum etc can be traded with each other on various platforms such as Bitfinex, Poloniex, btc-e etc. Whereas for Onecoin you will not find a single exchange that would allow you to trade Onecoin with any of these cryptocurrencies.
iv) Several similar MLM (Multi Level Marketing) cryptocurrencies in past have been busted and exposed, one example I can quote is USFIA's Gemcoin which was approximately 32 million dollar ponzi scam. Onecoin is based upon similar concepts of affiliate marketing.
v) Several Financial watchdogs such as UK's Financial Conduct Authority, German's Federal Financial Supervisory and Markets Authority have already warned against Onecoin.
vi) Several Countries have started a crackdown against Onecoin and have seized accounts for Onecoin payment processors. These countries include India, Thailand, Bangladesh, Germany etc.
To invest or not is however a decision that I will leave to your choice.
