DEFINITION of OneCoin
OneCoin claims to be a blockchain-based digital currency system and is promoted by OneCoin Limited, a company that operates worldwide with offices in Europe, Hong Kong and the United Arab Emirates.
OneCoin was launched by a Bulgarian national named Ruja Ignatova. OneCoin claims to work like any other standard cryptocurrency whose crypto coins can be generated through the data mining process and can be used to make payments around the world. It comes with its own electronic wallet and a total of 120 billion coins are available on the OneCoin network.
However, OneCoin would also be a Multilevel Marketing System (MLM) or a Ponzi scheme.
Although there is no clarity on a functional blockchain model or OneCoin payment system, it is known to sell various educational materials, including promotional and discounted combined packs, to participants. These courses cover cryptocurrencies, trading, investing and related topics such as financial analysis and asset management.
A user has to pay for these programs. In addition, participants are encouraged by sponsorship awards to attract more participants, a mechanism that corresponds to an MLM scheme. There are several reports alleging that OneCoin is a ponzi scheme and local authorities have taken action against it in several countries, including those of Bulgaria, country of origin of OneCoin, as well as in the United Kingdom and India.