After
the success of Bitcoin, dozens of virtual currencies have tried to be the “next
Bitcoin”. OneCoin is one such virtual currency that wants to capture a slice of
Bitcoin’s dominant market share. Find out everything you need to know about
OneCoin today in our review.
What is OneCoin?
OneCoin
is a virtual currency that primarily does its business outside the United
States. The company is headquartered in Europe and focuses on core markets in
Southeast Asia, Europe, India, and Africa.
OneCoin
is early in its development. The company’s stated goal is to create a market
with over 1 million traders while issuing 2.1 billion OneCoins.
According
to the official OneCoin website, OneCoin.eu, there are currently over 162,000
members and over 104 million OneCoins have been mined so far.
The
currency itself is a cryptocurrency. The company claims to use “the latest
cryptographic technology and security standards.” OneCoin has also partnered
with another virtual currency called the Aurum coin.
The
Aurum coin appears to be made by the same company as OneCoin and calls itself a
“hybrid crypto-currency”. It also claims to be backed by real gold reserves.
One
of the key differences between OneCoin and Bitcoin is that OneCoin is based on
commission sales. OneCoin traders can make significant commissions by
recruiting other people into the program and passing through the “online
trading academy.”
OneCoin
lists two addresses on its official website. One address for OneCoin Ltd. Is at
Suite 2B at 143 Main Street in Gibraltar. The other address is for One Network
Services Ltd., which is located at Tsar Osvoboditel 12, 1000 in Sofia,
Bulgaria.
OneCoin
heavily advertises its “opportunity”. Anyone can use this opportunity to begin
enjoying the “OneLife”. What does that mean?
It
means when you buy OneCoins, you can also subscribe to an online training
program that teaches you how to make more money by selling OneCoins to other
people.
The
company claims to provide superior lifestyles to all its representatives.
At
the official OneCoin website, OneCoin.eu, the company says the following about
the OneLife lifestyle:
“OneLife,
issues OneLife vouchers to its members, that can be redeemed for luxury
holidays, hotels, restaurants and experience days. Want to have an
unforgettable week in Bali? Or take your family, friends and loved ones on a
true life changing experience? Make sure you get in on the action and fun that
OneLife provides.”
You
can sign up through the official OneCoin website. Like most multilevel
marketing companies, you’ll need to pay to join.
There
is, however, a free package available. This free package is called The Rookie
and gives you 5 Aurum coins as well as a regular newsletter that provides more
information about OneCoin.
If
you want to actually join the program and begin making money, then you’ll need
to buy any of the product packages above The Rookie. After purchasing these
packages, you’ll gain access to the OneCoin back office as well as the
OneAcademy online training program and additional marketing tools. You’ll also
be able to create a business profile.
What is the Aurum Coin?
The
OneCoin and Aurum coins are somehow connected to one another. It seems like the
same company owns both currencies, although the relationship is never really
made clear. In any case, most of the OneCoin starter packages also include
Aurum coins.
Aurum
coins are described as a hybrid cryptocurrency. The currency claims to be based
in Dubai and calls itself a “pioneer in the world of virtual currency.”
Each
Aurum coin also claims to be backed by 1mg of solid gold that is physically
stored at a vault in Dubai. That works out to a concrete value of about 4 cents
per Aurum coin.
There’s
very little information about the Aurum coin available online. When you search
for it online, you’ll typically only find sites related to OneCoin.
Is OneCoin a Scam?
There
are dozens of red flags that indicate OneCoin is a scam and a Ponzi scheme. We
saw this happen with UFun as well with their UTokens.
First,
there’s the fact that OneCoin is staying far away from the United States. The
US financial industry is heavily regulated by the SEC. If OneCoin ever made it
to the United States, it would likely face intense scrutiny by the SEC because
the company offers an unregistered security.
Second,
there’s the fact that OneCoin is based in Sofia, Bulgaria. Bulgaria is one of
the worst-regulated countries in Europe. Did the founders register their
company in Bulgaria hoping to avoid regulation and scrutiny?
Third,
there’s absolutely no information about OneCoin available on the official
website or anywhere online. The company doesn’t list any information about its
management team or company structure. Whenever an MLM doesn’t provide
information about the people running the company, that’s a huge warning sign.
There’s
also the biggest problem: the company doesn’t explain how to use OneCoins to
make any purchases. Which retailers accept OneCoins or OneTokens? Can they be
used to purchase anything? It sure doesn’t seem like it.
In
fact, the only way to make money through OneCoin appears to be through its
binary compensation plan. You pay to join the company and then hope you can
convince other people to pay thousands of Euros in joining fees. If you can
convince people, then you’ll earn a 10% cut of their joining fee.
OneCoin
claims to pay its commissions down four levels, although it doesn’t explain
whether these payouts are paid daily, weekly, or monthly.
For
all of these reasons, OneCoin appears to be a scam or Ponzi scheme with no real
value or substance.
How Much Does it Cost to Join OneCoin?
OneCoin
entry packages are available at 7 different levels. Those levels range from
free to 5,000 Euros. Here’s how each package breaks down:
The Rookie (Free)
You
get a OneCoin eBook called Think and Grow Rich as well as a weekly newsletter.
You also receive 5 Aurum coins for free.
Activation Kit (30 Euros)
The
Activation Kit gains you basic entry into the company and also includes an
eBook copy of The Richest Man in Babylon.
Starter (110 Euros)
The
Starter package gives you access to the OneAcademy online education program.
This program introduces students to the world of financial products and
trading. Students can watch videos, view online reading materials, and complete
quizzes to help them make money by selling OneCoins.
Trader (550 Euros)
Trader
packages give members access to both level 1 and level 2 of the OneAcademy
online training program. The main difference between level 1 and level 2 is
that level 2 covers topics like gold and cryptocurrency.
Pro Trader (1100 Euros)
This
package gives students access to the first three levels of the online trading
program. These three levels promise to give users the “intermediate trading
skills” that can help them profit from mining and trading OneCoins.
Executive Trader (3300 Euros)
You
gain access to levels 1, 2, 3, and 4 of the online OneAcademy training program.
You also get a “detailed description of tools that will improve the
profitability of your trades significantly.”
Tycoon Trader (5500 Euros)
The
tycoon trader claims to be the “ultimate product package.” It contains all 5
levels of the OneAcademy training program and promises to help any trader raise
their skills to the highest level and maximize the profits they earn from
OneCoin mining and trading.
Conclusion: Who Should Join OneCoin?
OneCoin
is marketed primarily towards Europeans and people in developing countries. The
currency is also growing throughout Southeast Asia, India, and Africa. It has
not yet broken into the North American markets and the company doesn’t appear
to have any plans to do so in the near future.
With
that being said, OneCoin could be a good opportunity for those who enjoy the
idea of cryptocurrencies and want to join a new virtual currency early. When
Bitcoin was first launched, it was priced at 10 cents. Today, it consistently
hovers between $200 and $300. OneCoin wants to create a similar trajectory and
make all of its members rich through commission-based virtual currency sales.
Still,
there are plenty of red flags surrounding OneCoin – including the fact that the
company is registered in Bulgaria and offers little information about its
executive team or sales structure online.
If
you’re really committed to joining OneCoin and learning about a new
cryptocurrency, then I strongly recommend waiting several months to see if
OneCoin becomes less secretive or gains any traction. Otherwise, you could be
spending thousands of Euros on nothing.
