On October 1, OneCoin, a
self-declared cryptocurrency and trading venture based out of Bulgaria,
has announced at a conference in Bangkok, Thailand that it switches to
the “new Blockchain”, “transferring coins” from the old one to the new
one.
OneCoin has been in focus of Cointelegraph for some time. Recently the authorities of the UK and Sweden has warned investors that OneCoin is
suspected to be a pyramid scheme with no verifiable
evidence to back up any of its business claims.suspected to be a pyramid scheme with no verifiable
According to Tim Tayshun, CEO of Ezcoin, OneCoin is pure
fraud and deception. He gave Cointelegraph his version of events that
took place during the conference when OneCoin had mysteriously doubled
the coin of every member.
When asked whether OneCoin really delivered a new Blockchain to its clients, Tim Tayshun said:
“To 8,500 or so Onecoin cult members attending an event that day, the answer would be a resounding yes.”
“Keep money in the game”
Tim Tayshun continues his story: “Even a day prior to the event, Joby Boughey, formerly involved in the U-Token/U-Fun affair stated in a video on his Facebook page, that after today “nobody will say it’s a scam!” Ken Labine, Canada’s #1 Onecoin dealer, had similar things to say. However, upon closer inspection even my own jaw dropped at the tremendous caper being orchestrated live at the “OneLife Mastermind Event”
at the Impact Arena in Bangkok, Thailand. It was midnight California
time when the fun began and the “chat box” on the live video stream was
opened for all...”
Ruja Ignatova, CEO of OneCoin claimed that the mining
taking place was being shown live onstage on their new Blockchain. Tim
Tayshun thinks that was untrue: “What we could clearly see is that the only thing that was “switched on” was a flashing banner over THIS LOOPED VIDEO.”
As Tim Tayshun recalls, there was no explanation whatsoever
of how or if the old coins were transferred to the new Blockchain. He
also thinks that it is impossible to mine so many coins within just a
minute:
“It was claimed that in roughly 60 seconds, the first Genesis block of the new Blockchain ‘mined’ 1,986,580,000 coins. This is nearly 100x (94.5x) the amount of Bitcoin that will ever have been created over the next 124 years when the last Satoshi is finally rewarded sometime around the year of 2140.”
Tim Tayshun noted that Ruja announced the coin will go
public during the second quarter of 2018. Tim doesn’t believe it:
“OneCoin claims every coin is worth $7.80, and each OneCoin block will
disperse exactly 50,000 coins per minute. The total market cap of top
100 Cryptocurrencies is $12,210,633,867. OneCoin is saying the new
Blockchain will be pumping out coins worth more than the market cap of
the top 100 crypto-currencies combined – every 30 days”.
“So, by snapping her fingers and waving her magic wand and yelling, “Go! Go! Go! Mine!” Ruja is projecting one trillion Dollars worth of coins in 5 years - says Tim Tayshun. - OneCoin logic doesn’t even try to make sense.”
How OneCoin operates
Cointelegraph asked Tim Tayshun to explain how the OneCoin system is working. Tim Tayshun says:
“As we all know, each Ponzi playbook is this: Keep money in the game as long as possible.”
He continues: “Onecoin/ OneLife Network requires new
investor money coming in to pay out existing investors. Otherwise, the
well will run dry and the unsustainable scheme will collapse. Onecoin/
OneLife have invented clever ways of doing this. Mostly, it is to
encourage users to “roll their winnings” into the next package up, or
even the same package (ie., 2-3 or more Tycoon Packages at 5,000 Euro
each are advantageous for speculating investors) which come with more
tokens and higher “mining” incentives, splits and other nonsense. And
the claim that OneCoin sells “Education Packages” is utter nonsense.
Onecoin/ One Life have recently tried to entice new victims with
packages costing as much as 27,500€ and even 118,000€! Which resulted
in the related YouTube video having been taken down for violating rules
on scams.”
Fantasy cryptotech
Tim Tayshun continues:
“Through a variety of magic splits, doubling, auto-mines
and other fantasy crypto-technology terms, investors were promised a ROI
of over 2,000,000 coins worth over $14 million. Onecoin’s uses of KYC
actually as well as not having a wallet betrays their ignorance of
cryptocurrency. Moreover, you can only withdraw a fraction of your
deposit. That means OneCoin is not a cryptocurrency. How they can bring
on board one million merchants without a wallet? Does Johnny Burger King
at the cash drawer have to register his ID to accept payments, or does
he have to call the boss at one of the other stores? Do these “Leaders”
just blurt out the first half-baked idea that comes to their head?”
Future of OneCoin
“95% of victims will be shocked at their own ignorance and for not seeing and listening to so many warning signs, says Tim. Only about 12.5% will even make back their initial investment, meaning that 87.5% will lose any money they have invested. Some of that percentage will lose everything, including their home and life savings, as I know of people who have literally put up mortgages gambling on a get-rich-with-little-work philosophy.”
According to Tim Tayshun, bringing the people behind
OneCoin to book should be the focus of the cryptocurrency community in
order not to jeopardize the genuine cryptocurrencies out there. He says:
“For the real digital money community and for Blockchain
enthusiasts, the best we can do is to not let mainstream media and
regulatory bodies (ie., Govt.’s) look at this as another Mt. Gox (but
much bigger), and try to create stricter regulations, laws, compliance
and oversight which will only stifle innovation in this field and make
it more expensive for start-ups and honest players in the space to
continue pushing the boundaries of this technology. The community will
need to push to convey the understanding that this has nothing
whatsoever to do with cryptocurrency or the Blockchain technology. That
has always been one of my greatest worries when watching this unfold.”