Is One Coin a Scam? What You Should Know
If you are thinking about investing in OneCoin then I recommend you read my little review first. I am a huge fan of the cryptocurrency market and do my fair share of investment myself. I was reading about OneCoin and there is a lot of controversy surrounding it. So I took a deeper look into this all and found some things you should know.
If you are wondering is One Coin a scam then this is for you. In this review I’ll be going over some of the controversy surrounding it as well as my opinion as to whether or not its something I would recommend getting into.
One Coin Review
- Website: onelife.eu
- Recommended?: Not Really, more on this
OneCoin was founded by a woman named Dr Raju Ignatova in 2014 in Bulgaria. And overall this company is pretty confusing. They claim to be transparent but I would beg to differ on that statement.
Basically what they do is sell educational packages among other products. And when you buy these educational packages you get what they call “tokens” which can then be used to mine OneCoins, which are their form of cryptocurrency.
OneCoins don’t really have any value outside of the OneCommunity at this point. This is because it is not traded on any exchange. So pretty much right now the fate of this cryptocurrency hinges on the expansion of the OneCommunity.
Its all pretty confusing to me and seems like they are beating around the bush here.
What makes me really suspicious of the legitimacy of this company and their cryptocurrency is the fact that they are an mlm company, which means that members of OneCoin can go out and recruit other people to buy “education packages” and make money off of doing so. They can also get paid when those people go out and get others to buy in.
This mlm side of OneCoin makes me very uneasy and I’ll get more into this in a second. But first I want to go over these educational products that they sell…
Their educational packages are part of their “OneAcademy” product line. They range anywhere from being free to up to 18,800 Euros. These packages include materials on investing, trading, and mining cryptocurrencies among other similar teachings. A lot of their focus is specifically on mining OneCoins.
Here is a screenshot of these packages…
In order to access their exchange, which is called OneExchange, you need to purchase the Starter package. But even with this package you won’t have full access. You will have limits of exchange that you won’t be able to go past. The more expensive of a package you buy the access you will have in the exchange.
They are also coming out with other products and have a bunch more at this point including…
MAB (mobile application builder)
This allows companies to build their own small applications for their business and allows them to accept OneCoins through it.
This is a cloud storage service where you can store data.
They have their own tablet now. Here I’m talking about a tablet like an iPad, just not quite that good. They claim it is very good and competes with other high-end tablets but I can’t back up this statement.
This is a site similar to Groupon. The difference is that it is specifically designed for sellers that accept OneCoin as payment.
They are still coming out with new products but the main product is still the educational packages discussed above, which is their big money maker.
The MLM Side of OneCoin
As I mentioned, OneCoin is also a mlm, which is pretty much the reason there is so much controversy surrounding it. Members of OneCoin can go out and recruit other members in and make money off of their efforts. This is a structure where the top get rich and the bottom struggle to make anything worthwhile.
The thing about this mlm though is that you don’t get paid all in dollars, you get paid in Tokens and dollars! Yay (joke). There are 4 different ways to earn money and I’ll go over each…
The first way to make money is by selling their products directly to others. You will receive 10% commissions on any of the sales you make personally.
60% of these commissions will be in the form of cash, while the other 40% will be in Tokens.
Fast Start Bonus
In the first 30 days if you make $5,500 in sales from your entire organization (sales made by you and those in your downline) then you get this fast start bonus which will give you an additional 10% commissions on the direct sales you make for that month.
100% of this will be paid to you in the form of Tokens.
Binary Team Bonus
This is a binary structure, which means there are 2 positions beneath you and everyone else. These 2 positions then branch off and make your right side and left side.
If you recruit 2 people in, and they recruit 2 people in, this pyramid structure can keep growing and growing.
I am not sure how far down you can earn money but I have seen in a presentation a member speaking about earning at least 12 levels deep.
You will get paid 10% commissions of your weaker side of this binary structure. For example: if your left side makes 50,000 Eur in sales this month and your right side makes 40,000 Eur in sales, you will earn 10% of the 40,000 Eur because that is your smaller side this month.
You will earn your commissions as follows: 60% cash, 40% Tokens
Here you get bonuses for the money that people on your team earn. You will get paid 4 generations deep.
Your 1st gen are the people that you personally recruited, your 2nd gen are the people that they recruited, and so on.
You will earn these matching bonuses as follows…
- 1st Gen – 10%
- 2nd Gen – 10%
- 3rd Gen – 20%
- 4th Gen – 20%
And that is the compensation plan. Confusing right? You can watch this Youtube video below if you want it explained a little better. This is for educational purposes only and I don’t own this video.
Pyramid Scheme Maybe?
There is A LOT of pyramid scheme talk when you read about OneCoin.
Ok, so obviously the compensation plan above is focused on recruitment. Its all about recruiting other people in beneath you and earning money off of them and their efforts. The line between mlm’s and pyramid schemes can be somewhat skewed at times.
One of reasons that OneCoin looks even more like a pyramid scheme is because this cryptocurrency isn’t listed on any exchanges. This means it has no real value outside of the OneCommunity. This means that pretty much the only way you can make real money of value is by recruiting other people in and making money off of their comp plan.
Can You Trust OneCoin?
In my opinion OneCoin is a very shady business with a lot of darkness surrounding it. Even the person behind it all, Dr Raju Ignatova, there is a lot of weird things that done make sense that I read.
The company around OneCoin claims to be transparent but it seems like they are everything but that. Everything is confusing about his place and it makes me uneasy.
As far as trust goes, there is no good reason for me to trust this place. And another thing that worries me is how they don’t enter the US. Is it because they are afraid the SEC will kick them right back out?
Final Thoughts & Should You Invest?
One thing is for sure… I sure as heck won’t be investing in OneCoin. The only value it has at the moment comes from using it in the OneCommunity. You could use it with DealShaker, which is their one product that is similar to Groupon, and you could use OneCoins for other “One” products. But outside of this OneCommunity these OneCoins aren’t worth anything. They aren’t available on any exchange and that is a big problem.
Honestly I don’t see the value in OneCoin. There are a lot of legitimate cryptocurrencies out there that have real value and this just doesn’t seem to be one of them at this point. If the OneCommunity continues to expand then this can go up in value, but there is not telling if that will happen or not. I don’t really see this going anywhere and I don’t recommend it.
I think I’ll just stick with investing in Ethereum and making money online at the moment. And on this thought, if you are interested in making money online you can read about how I do so. I make a living working for myself online and I wrote a post all about it. In this post I explain what it is that I do, how it all works, and how others can get started doing the same.
Questions, comments, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂