OneCoin Ponzi Scheme Adjusts Tactics To Recruit More Members

There has been a lot of talk about various Ponzi schemes active in the world of Bitcoin and how some of these projects seem to target novice users specifically. Recruiting new members by hosting a fancy seminar or meeting is a great way to keep up the illusion of legitimacy, and seems to be what OneCoin has been doing for quite some time now. As most people are well aware of by now, this program is nothing more than a scam waiting to collapse at any moment.

Also read: Wirex Launches Buy Bitcoin Service with PayPal

OneCoin Seminars Keep Luring In People

TheMerkle_Ponzi Scheme OneCoin

For some of the more prominent scams and Ponzi schemes in the Bitcoin game, establishing an online presence alone is no longer sufficient. As the customer base grows, more money has to keep flowing into the scheme to keep early investors happy, otherwise the pyramid will collapse. What better way to find new members then by using part of company profits to hold seminars and meetings in the hopes of luring in new suckers?

Attending these events may give companies like OneCoin some sense of credibility, as they hold these seminars at fancy locations wearing fancy suits and ties. Novice digital currency users seem to give into the illusion, after all people in suits and ties would never lie to anyone, right?

Investing in digital currency and Bitcoin has a particular appeal to a variety of people. Companies like OneCoin can promise incredible returns on investment in a short timespan for anyone willing to take the plunge, but it is very doubtful anyone will ever see their original investment, let alone any profit. That is, unless these people start referring their friends and family to become a part of the MLM structure.

What is of particular worry is how OneCoin representatives are willing to take various forms of payment from novice users to keep their scheme going. Even cash payments are accepted, as these types of transfers are non-refundable and completely anonymous, unlike Bitcoin payments which are pseudo anonymous or wire transfers which bear no anonymity at all. Although no one should ever deal with companies willing to accept cash payments for a product they probably can’t deliver, some people will still fall for it.

Unfortunately, it can be rather difficult for people to get their funds out of OneCoin once they join the ranks, as getting cash refunded is impossible. Credit card transfers or Paypal transfers can be charged back if done in time, and if enough refund claims are registered, payment processors might freeze OneCoin’s accounts.

Ponzi schemes like OneCoin attract a lot of negative and unwanted attention towards digital currency in general, even though none of these schemes have anything to do with Bitcoin directly, the fact that they refer to Bitcoin as their competitor sheds a negative light on the currency. Granted, most of them claim they invest in and trade with Bitcoin, but the reality is they only collect money from investors to fuel their MLM machine and keep the scam going as long as possible.

Source: Reddit

Images credit 1,2

If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.

  • RJF

    Good article, we will see how long they last. About attracting negative attention to the crypto-currency industry, correct, people are drawn to the bad news and then paint the whole industry with that brush. I wouldn’t worry too much though, Bernie Madoff fleeced thousands with his scheme. Last time I checked, Wall Street was still there and prospering!

    • Jason c

      Funny you say it’s a good article- it was purely opinionated words with no facts to back them up/ this is not journalism – it’s also interesting the author is a bitcoin backer- can you say- conflict of interest

      • Bitcoins and Gravy

        That’s true Jason. The author could have give us some meat with this potatoes article. But then again, Onecoin is so OBVIOUSLY a scam that it hardly deserves a discussion or dissection at all.

        • Expanse <3

          Seriously?! It is a scam?

          • Dennis

            Yes, seriously.

          • Expanse <3

            Well, Thank you for the confirmation. 🙂

          • Bruno Parhiala

            No is not a scam Onecoin Founder is Dr. Ruja Ignatova holds a Ph.D. in Law, a degree in Law (MJur) from the University of Oxford and a Masters Degree in Law and Economics from the University of Konstanz.. Dr. Ignatova set up the goal of changing the way people think of investments and transactions. When she founded OneCoin, Dr. Ruja made the first step in creating the top one digital currency worldwide. the Blockchain is been public an audited

          • Lol

      • Dennis

        Drive-by shill Jason, there is no conflict of interest between Onecoin and Bitcoin, just between Onecoin and sanity.

  • This guy thought it was a SCAM too until he met with the Founder, Dr. Ruja Ignotiva. After speaking with her he did a two page article and put her on the cover of FinancialIT magazine. “OneCoin is leading the charge of acquiring the masses into the
    crypto currency shift across the globe. They’re doing an amazing
    job at taking what normally is the complicated idea of crypto
    currency and making it ultra simple and easy to understand so
    anyone can get involved and profit from it.”
    Chris Principe- Publisher of Financial IT Magazine

    • Bitcoins and Gravy

      Sounds like Chris Principe is a moron. There are lots of them on the planet.
      Ignore them and move on. Keep busy with your own projects and keep producing.
      Hi Katherine! Nice horse!
      : )
      John B.

      • Markus Panomies Persson

        Chris Principe was bought by Onecoin.

    • Dennis

      Financial IT is a rag that sold Ms. Piggy’s scam a limited run one off edition with her on the cover and meaningless PR blurb to suit.
      XcoinX, the only exchange that supposedly touches onecoin (and is owned by them), has not reopened since closing for “maintenance” three weeks ago. Card conversion/withdrawal has been disabled too. The mugs are totally locked in now.

    • Bruno Parhiala

      Katherine We all know Onecoin is legit some people here has no knowledge because is a new industry they don’t understand the concept , and because ignorance the say all kind of lies , also some of this guys are paid by other MLM to talk bad things , like people from Organo gold , Jeunesse , Zrii, Bitclub network , they say because is a treath to their businesss , Don’t worry Time will tell

      • Hennessy Hemp

        As in a legitimate scam…we take your money…you lose, game over.

        • Bruno Parhiala

          lol hahahaha and this guy sell hemp hohohoho

      • Markus Panomies Persson

        Are you Juha’s son Mr. Bruno? Say hi to him from me! 🙂

    • Hennessy Hemp

      Yes, by removing the crypto-currency from the equation, we can completely simplify the act of taking your money because you are stupid. We have no checks and balances, no mining, no product whatsoever, but we have fake websites that compare us to bitcoin…OneCoin, because you’re an idiot.

    • Carl Mullan

      JP has written an excellent article and truthful. The products sold through Onecoin are obvious scams. Sure, Onecoin seems to be an actual cryptocurrency; so why would I have to pay 27,500 euros to participate? The success of any digital currency does not hinge on how profitable it is for “members” of the MLM or how fast the referral network grows. What a joke. Next month we have an extensive article on Crypto Ponzis, so I’ll be including Onecoin, and it’s MLM operation; now. Thanks for your comment Hennessy Hemp and thank JP for writing this piece. Ponzi scams and fraudulent MLM schemes using digital currency are a plague across the Internet and have been since 1998 when e-gold’s digital currency innocently aided the launch of an HYIP industry. The Ponzi schemes have contributed to the closure of many well-known digital currency businesses over the last 15yrs. The sale of MLM products centered on Onecoin is a VERY prominent MLM scam, as is the Bitclub Ponzi. No need to debate here with the online shills, we let readers and U.S. prosecutors make their decisions. DIY cryptos are the “penny stocks” of this era.

      Carl Mullan

      • Think what you like, 2 Million people are now educated about digital currency and are in profit. There is no Scam here, we’ve been investigated numerous times by countries.

        • Katherine, you got suckered is all I can say. And when the authorities start arresting people they just go after the top earners of the Ponzi and the rest run like Cockroaches.

          • Alexandru Matei

            They just don’t know how deep the shit they got into. And there are a couple hundred that will face charges.

  • Hennessy Hemp

    I talked to one of their recruiters who had me go to a fake version of coinmarketcap that had “OneCoin” listed as the second most popular coin behind bitcoin…I asked if they accepted bitcoin…he said no, us dollar only…I then laughed and laughed, he cried and texted me multiple times after I told him to fuck off.

    • Bruno Parhiala

      Now we added Bitcoin to our network and you can exchange Bitcoin to Onecoin and viceversa , you can use the Bitcoin cashiers to get out your money , Bitcoin is making Onecoin stronger more and more people buying Onecoin with their bitcoins because they fell more secure, steady growth and stable

      • Hennessy Hemp

        Damn…I’ve apparently helped them…hopefully those of you with Bitcoin to spend know not to send it here under any circumstances. This is a fraudulent vendor attempting to defraud anyone that gives them money. If you are foolish enough to give them your money, don’t expect to get it back, ever.

        • IT only took 19 months for this “cryptocurrency company” to actually accept cryptocurrency. Lol

  • Expanse <3

    Nice. We can totally see how it goes on.