How Non To Blockchain - A Await At Onecoin
In the recent weeks at that spot has been a resurgence of tidings most OneCoin, what appears to last a high-profile MLM ponzi scheme disguised every bit an altcoin. From what I tin gather, the renewed popularity of the theme was sparked past times OneCoin's Coin Rush Global Event:
Watching this video every bit someone that has been around Bitcoin for 5 years now, at that spot are to a greater extent than ruddy flags hither than yous would run across during International Workers' Day inward some places. In fact, the video too OneCoin inward full general are such a proficient instance of how yous tin bamboozle people past times maxim just the correct affair that it mightiness last a worthwhile practise to dissect a lot of it.
Going onto a cryptocurrency website yous desire to await for a few key pieces of information:
Getting all 5 of the higher upwards points is a proficient start for whatever currency, but every bit nosotros tin see, fifty-fifty some of the largest coins are missing i or 2 of those features. Lacking all 5 does non bode well.
Putting all of that aside, let's await at the video proper too run across what the outcome is about. Apparently the large tidings that 24-hour interval was that OneCoin is retiring it's onetime blockchain (!) too launching a novel i inward Oct too so they tin construct to a greater extent than onecoins (!!). The justification being, too I kid yous not, that they demand to a greater extent than coins to grow, since at that spot mightiness non last plenty coins for novel merchants, Latin America, India, etc.
Let that sink inward for a bit. Influenza A virus subtype H5N1 cryptocurrency that is non explicitly tied to a fiat currency is running out of coins for people. So instead of letting costless marketplace organically settle on a cost it thinks the coins are worth too say, buying the coins from the marketplace to give to the novel merchants if they want, they instead create upwards one's heed to construct to a greater extent than coins...
The number is also to a greater extent than complicated than just that. OneCoin Delegated Proof of Stake, but no, OneCoin does it differently - "People are signed upwards too assigned to mining pools on a outset come, outset serve basis. Whenever a house is costless yous tin bring together a pool.". The procedure appears to be:
But fifty-fifty all of that is non the whole story. Enter the splits and tokens. You don't straight purchase the onecoins, instead yous purchase packages that include tokens too splits:
Apparently inward monastic tell to pop off along the cost attractive, yous carve upwards the tokens every bit yous would society shares. In the destination it agency that yous have got a higher quantity of tokens that yous tin job for mining, but the value stays the same, I think. The splits plainly tin solely last used on the tokens, non the coins that are mined, too yous tin combo the diverse packages inward some "strategy" to have to a greater extent than too to a greater extent than splits.
This seems to accomplish a few things:
So inward other words, the entire organisation looks similar a shady mobile app:
If that wasn't enough, yous also can't forget most the tally bonus for people yous refer:
Because nil inspires to a greater extent than confidence than a pyramid-like construction amongst the money flowing to the top...
There is also something most non genuinely purchasing tokens, but instead purchasing preparation from OneAcademy that conveniently comes amongst tokens, BVs too what have got you, but at this indicate I recall I made my point. Purchasing whatever cryptocurrency is elementary - yous bring your money, yous acquire your tokens. With OneCoin, a elementary merchandise is a drawn out procedure taking many months amongst null transparency. Mining is a joke, the numbers are multiplied over too over. But the story doesn't destination there...
During the Coin Rush Global Event, at that spot have got been a number of claims made most OneCoin too other coins every bit well. After hearing a lot of them, i feels the urge to scream "show us your proof". In no particular order:
Even later pointing out the diverse problems for a long while, at that spot is notwithstanding a lot to a greater extent than that needs to last addressed. Going into item on everything would in all probability construct this lengthy article in all probability twice every bit long. So let's destination off everything else inward some quicker fashion. What follows are diverse claims, quotes too other titbits from the video presentation:
OneCoin, officially based inward Dubai, boasts an impressive "ecosystem", consisting of 10 distinct items:
OneCoin, peradventure going inward Microsoft's footsteps of wishing their products to last abbreviated into "The One" has raised a lot of ruddy flags on all fronts. It does non instil whatever confidence inward its products, its job concern strategy, or legitimacy of its creators. It takes money from a lot of people, turns it into a flashy demonstrate to boost confidence, too talks most its "community" too "family". The way it does job concern is overly complicated, intentionally opaque, too unverifiable. It is a blockchain too cryptocurrency solely past times self-proclamation. Keep every bit far away every bit yous tin from anything related too taste the slow-motion develop wreck.
Related Links:
The Bitcoin Bullshit List
Your postal service advocates a new:
(x) Altcoin
(x) Permissioned blockchain
(x) Centralised / decentralised exchange
(x) Remittance service
(x) Gambling website
(x) Investment scheme
(x) Wallet
(x) Mining service (hardware, software, etc.)
(x) Mining pool
Your persuasion volition non work. Here is why it won't work.
(x) There is already a production on the marketplace that does precisely what you’re doing, but (x) faster / (x) cheaper / (x) ameliorate / (x) is to a greater extent than established / (x) is non a scam
(x) You are proposing exorbitant fees for the job of your production that are unsustainable inward the long run
(x) Your production gives unfair preferential handling to (x) yourself / (x) the earliest adopters / ( ) early on investors / ( ) select few / ( ) _____________________
(x) You violate the meat principles of Bitcoin, including: (x) meat cryptography of the protocol / ( ) 21M money trammel / ( ) money distribution / (x) ownership of individual keys / (x) inclusive nature of the network / (x) pseudonymity of users / (x) lack of transaction censorship / ( ) ______________
(x) You hope unreasonable render on investment without a clear job concern model of where the money is coming from
(x) Your projection cannot last run legally at your jurisdiction
(x) Your projection volition non last compliant amongst the electrical current ( ) KYC / ( ) AML / (x) gambling / (x) MLM regulations
(x) You rely on proprietary ( ) hardware / (x) software / ( ) intellectual belongings / ( ) _________
x) Your solution is worse than general-purpose computing hardware / software
(x) Your production is poorly implemented
(x) Your presale tokens have got no economical value
(x) Your adoption goals are unrealistic
(x) Your production has null transparency
Specifically, your conception fails to job concern human relationship for:
(x) The existing regulations
(x) The required Money Services Business license
(x) The anonymous nature of cryptography
(x) The geopolitical map of the world
(x) Adaptability to growth of the marketplace cap
(x) The miner incentives
(x) Public reluctance to have got weird novel forms of money
(x) Huge existing software too hardware investment inward Bitcoin
(x) The known safety exploits of the existing Internet services
(x) Secrecy of information decryption
(x) Increase inward currency unit of measurement provide non beingness the same affair every bit increment inward wealth
(x) Disproportionate increment inward currency units drains wealth from i grouping into another
(x) The long-term sustainability of the project
too the next philosophical objections may also apply:
(x) It is a MLM scam
(x) It is a heart too dump
(x) It is a (x) ponzi / (x) pyramid / ( ) ___________ scheme
(x) Influenza A virus subtype H5N1 known (x) scammer / (x) soul amongst wretched reputation is involved amongst your project
(x) Why should nosotros have got to trust yous too your servers?
(x) Incompatibility amongst opened upwards rootage or opened upwards rootage licenses
(x) Feel-good measures create nil to solve the problem
(x) Extraordinary claims require extraordinary testify (aka “Proof or GTFO”)
(x) I don’t trust YOU amongst the money
Furthermore, this is what I recall most you:
(x) Sorry dude, but I don't recall it would work.
(x) This is a stupid idea, too you're a stupid soul for suggesting it.
(x) You’re a scammer too yous should experience bad.
Bitcoin Bullshit Tier
You are advertising a novel Bitcoin / crypto related project. Based on the information provided, yous have got reached the Bullshit Tier of four for the next reasons:
Bitcoin Bullshit Tier 1 - marketing babble, engineering scientific discipline misunderstanding
(x) “Blockchain”
(x) “As proficient every bit / ameliorate than Bitcoin”
(x) Misunderstanding the technology
Bitcoin Bullshit Tier 2 - willful misinformation, bait too switch
(x) Selling overpriced / underperforming hardware or software
(x) Claiming your projection tin accomplish something difficult without a clear explanation of how to create so
Bitcoin Bullshit Tier three - Many ruddy flags
(x) Assuring your production is legal
(x) Speaking most profits / render on investment
(x) Providing no society contact information
(x) Multiplying coins
(x) Rebooting the blockchain
(x) Company beingness hosted inward difficult to orbit countries
(x) Claiming your production services / is available at a large sum of institutions without a proof
Bitcoin Bullshit Tier four - Outright scams
(x) High render on investment
(x) Describing a fiscal safety too claiming it’s non a security
Sumber http://tpbit.blogspot.com/
Coin Rush Global Event
Watching this video every bit someone that has been around Bitcoin for 5 years now, at that spot are to a greater extent than ruddy flags hither than yous would run across during International Workers' Day inward some places. In fact, the video too OneCoin inward full general are such a proficient instance of how yous tin bamboozle people past times maxim just the correct affair that it mightiness last a worthwhile practise to dissect a lot of it.
The Basics
Going onto a cryptocurrency website yous desire to await for a few key pieces of information:
- Who is developing the projection / the code? You desire to discovery at to the lowest degree a competent evolution squad identifying themselves. Examples: Bitcoin, Ethereum, Ripple. For OneCoin, the best resources I could come upwards across was OneDream Team's "Top Leaders", which solely boasts some news.
- Where is the society located? It is specially of import for exchanges too other companies you're giving money to, but tin last useful for the meat evolution squad if applicable. Examples: might non last a currency at all, but instead some "funny money". For a smorgasbord of examples, yous tin banking concern check out CoinMarketCap, indexing things every bit depression every bit $8 marketplace cap for COIN. OneCoin, despite boasting 5.2B USD marketplace cap, is conspicuously missing...
Getting all 5 of the higher upwards points is a proficient start for whatever currency, but every bit nosotros tin see, fifty-fifty some of the largest coins are missing i or 2 of those features. Lacking all 5 does non bode well.
That's non how blockchain works
Putting all of that aside, let's await at the video proper too run across what the outcome is about. Apparently the large tidings that 24-hour interval was that OneCoin is retiring it's onetime blockchain (!) too launching a novel i inward Oct too so they tin construct to a greater extent than onecoins (!!). The justification being, too I kid yous not, that they demand to a greater extent than coins to grow, since at that spot mightiness non last plenty coins for novel merchants, Latin America, India, etc.
Let that sink inward for a bit. Influenza A virus subtype H5N1 cryptocurrency that is non explicitly tied to a fiat currency is running out of coins for people. So instead of letting costless marketplace organically settle on a cost it thinks the coins are worth too say, buying the coins from the marketplace to give to the novel merchants if they want, they instead create upwards one's heed to construct to a greater extent than coins...
The number is also to a greater extent than complicated than just that. OneCoin Delegated Proof of Stake, but no, OneCoin does it differently - "People are signed upwards too assigned to mining pools on a outset come, outset serve basis. Whenever a house is costless yous tin bring together a pool.". The procedure appears to be:
- You ship OneCoin money to purchase the correct to mine the coin
- You sign upwards to mine
- You hold off for your plow to mine
- You acquire your coins
In other words, it's similar purchasing coins from an substitution (send money, acquire coins), but amongst an arbitrary hold off catamenia (currently 3-6 MONTHS!) betwixt sending money too receiving coins. As Ripple's Consensus algorithm than anything mining-related.
Splits too tokens
But fifty-fifty all of that is non the whole story. Enter the splits and tokens. You don't straight purchase the onecoins, instead yous purchase packages that include tokens too splits:
Apparently inward monastic tell to pop off along the cost attractive, yous carve upwards the tokens every bit yous would society shares. In the destination it agency that yous have got a higher quantity of tokens that yous tin job for mining, but the value stays the same, I think. The splits plainly tin solely last used on the tokens, non the coins that are mined, too yous tin combo the diverse packages inward some "strategy" to have to a greater extent than too to a greater extent than splits.
This seems to accomplish a few things:
- Make the procedure to a greater extent than opaque
- Incentivise people to purchase to a greater extent than too to a greater extent than packages to acquire the best value for their money
- Make people experience similar they are inward command of how to acquire the most money too acquire ahead of everyone else
- Widen the distance betwixt existent money too onecoins past times extra few steps inward a freemium-like model
So inward other words, the entire organisation looks similar a shady mobile app:
"Money, money, money money money money"
If that wasn't enough, yous also can't forget most the tally bonus for people yous refer:
There is also something most non genuinely purchasing tokens, but instead purchasing preparation from OneAcademy that conveniently comes amongst tokens, BVs too what have got you, but at this indicate I recall I made my point. Purchasing whatever cryptocurrency is elementary - yous bring your money, yous acquire your tokens. With OneCoin, a elementary merchandise is a drawn out procedure taking many months amongst null transparency. Mining is a joke, the numbers are multiplied over too over. But the story doesn't destination there...
Show us your proof
During the Coin Rush Global Event, at that spot have got been a number of claims made most OneCoin too other coins every bit well. After hearing a lot of them, i feels the urge to scream "show us your proof". In no particular order:
- OneCoin has 2 i M 1000 active users, no other currency has every bit much - I would dear to run across a proof of that claim, since it non solely asserts a lot of people are using OneCoin, but claims to know how many people are using other cryptocurrencies, which is an information that is difficult to come upwards by. Someone estimated Bitcoin to have got 50M users past times 2015, but that's a guess. How many people are genuinely active on Bitcoin or OneCoin, that would last interesting to know.
- OneCoin has 4.5B USD marketplace cap - seeing every bit the coins aren't actively traded at whatever reputable substitution too the blockchain is non verifiable, whatever number yous throw out at that spot is every bit valid every bit whatever other.
- Bitcoin has almost no merchants taking it - at that spot are 8000 physical locations taking Bitcoin today, inward 2014 BitPay estimated the number to last over 20k. All inward all, it would last interesting to run across where the information is coming from, since it's non that piece of cake to come upwards by
- OneCoin is inward 195 countries, it's bigger than Western Union - It would last genuinely interesting to run across the actual listing of their operations. There are 195 countries inward the world, which agency they would have got to operate inward the US, North Korea, Islamic Republic of Iran Sudan, Syrian Arab Republic too Myanmar at the same time, violating a lot of international sanctions.
- OneCoin tin create to a greater extent than transactions than Visa too Mastercard combined - this would hateful it tin handgrip more than 2'000 transactions per second, it would last an impressive sum of information to synchronise inward a blockchain
- OneCoin stores all client KYC information encrypted on the blockchain - this would non solely last a huge customer information protection concern (blockchain past times Definition is shared betwixt multiple parties, too so all yous demand is a blockchain too encryption key leak too someone has compromised all of that data), but also an tin last an number of how decryption would last handled under a warrant
And from other sources:
- proof of solvency, invite some reputable auditor to perform the check, nothing?
The Icing on the Cake
Even later pointing out the diverse problems for a long while, at that spot is notwithstanding a lot to a greater extent than that needs to last addressed. Going into item on everything would in all probability construct this lengthy article in all probability twice every bit long. So let's destination off everything else inward some quicker fashion. What follows are diverse claims, quotes too other titbits from the video presentation:
- It takes over a twelvemonth to mine i bitcoin - unless you're 21.co, nobody advocates Bitcoin mining to newcomers. Just similar mining gilded inward existent life, it's best left to professional person companies
- There are "Mickey Mouse coins" that re-create OneCoin's concept - don't flatter yourself, everyone is aping Bitcoin
- Just similar yous demand a driver's license to drive a car, yous demand a drivers license for the cryptocurrencies - i of the beautiful things most Bitcoin is that it's inclusive - anyone tin job it, yous don't demand a permission. While didactics is valuable, forcing people to become through a essay earlier they tin job cryptos is missing the point
- OneCoin wants to last number 1 cryptocurrency world-wide inward 2 years
- When Bitcoin was i twelvemonth old, it was worth fifteen cents too nobody cared most it - it took 2 years for Bitcoin to last worth fifteen cents, but similar a shot the speed at which proficient coins accelerate inward cost has increased thank yous to Bitcoin. Dissing on the history to construct your money appear ameliorate is a fake equivalence
- OneCoin is i twelvemonth onetime too it already wrote history - non really, but it volition for certain write history i time the jig volition last up
- They are aiming to have got xx i M 1000 active users too 1 i M 1000 merchants inward 2 years
- "We are the bigger community - nosotros create upwards one's heed what the philosophy of cryptocurrency is"
- The merchant / Latin America / Republic of Republic of India marketplace capitalization is X trillions, OneCoin is solely worth 5 billion, it only does non piece of work - normal money would allow the cost to grow to adjust the marketplace too job the 8 decimal places the money has. Saying that yous demand to increment the sum of coins to grow is similar maxim yous demand to piece an apple tree into to a greater extent than pieces to arrive bigger
- "We tin unopen novel registrations, turn down merchants... Or construct to a greater extent than coins!"
- "Biggest money out at that spot is Ripplecoin [sic], amongst 100 billion coins[sic]", too OneCoin volition increment its number of coins to 120 Billion to last bigger than Ripple - that volition notwithstanding construct yous three times smaller than Fedoracoin, why non become for more?
- You can't increment the sum amongst the electrical current blockchain, demand to retire the blockchain too launch a "new, to a greater extent than powerful blockchain" - yous could, if your developers were upwards to snuff. Or maybe you're doing this to delete some onetime information from the onetime blockchain, or innovate some unlike balances that aren't supposed to last there?
- Every job concern human relationship residual volition last doubled later the blockchain is updated - again, increasing the numbers is non the same every bit increasing the value those numbers represent
- When posting a inquiry "will my coins last worth less later the update", the respond is non a clear "yes or no", but instead maxim that the value of coins comes from construct too usability
- Restaurant or retail shop volition never bring Bitcoin - 8000 times false
- "OneCoin volition write history, too the cryptocurrency comminuty volition have got to rewrite philosophy"
- "In 2 years nobody volition speak of Bitcoin anymore"
And in conclusion - "OneCoin Cryptocurrency is Unique, Safe, Global & With No Risk of Inflation", other than the doubling of the coins, the extra sum of coins that volition last pumped into the organisation later the switch, etc. Those petty things.
The Ecosystem
OneCoin, officially based inward Dubai, boasts an impressive "ecosystem", consisting of 10 distinct items:
OneCoin's ecosystem
- OneAcademy, an e-learning platform teaching most tarding, stock exchange, cryptocurrency, etc. inward a 6-level program, boasting over 2'000'000 students too supporting 231 out of the current 195 solid soil countries
- OneExchange, currently non online
- OneLife Network - "a digital platform amongst a unique ecosystem of sophisticated products too social networking tools that assistance members attain fiscal independence", whatever that's supposed to mean. But fret not, they volition offering yous an "Ultimate Trader Package" for the depression low cost of 118'000 EUR, too a tablet to match for 550EUR, solely 5-6 times to a greater extent than expensive than a comparable tablet. No contact information
- Merchants
- OnePay - a payment solution based inward Bulgaria
- OneForex - an substitution that is non functional yet, but it volition somehow last unlike from OneExchange?
- Investment Funds
- OneWorld Foundation - a charity helping the children based inward Bulgaria, not to last confused with one solid soil foundation, or One World Foundation or One World Foundation
- CoinCloud - a cloud storage where yous tin purchase 100GB of information infinite for 1 twelvemonth for 3'030 EUR, which is most 1'500 times to a greater extent than expensive than Google Drive
- CoinVegas - a gambling website based inward Malta
Conclusions
OneCoin, peradventure going inward Microsoft's footsteps of wishing their products to last abbreviated into "The One" has raised a lot of ruddy flags on all fronts. It does non instil whatever confidence inward its products, its job concern strategy, or legitimacy of its creators. It takes money from a lot of people, turns it into a flashy demonstrate to boost confidence, too talks most its "community" too "family". The way it does job concern is overly complicated, intentionally opaque, too unverifiable. It is a blockchain too cryptocurrency solely past times self-proclamation. Keep every bit far away every bit yous tin from anything related too taste the slow-motion develop wreck.
Related Links:
- What is OneCoin too is it legitimate?
- One Coin, Much Scam: OneCoin Exposed every bit Global MLM Ponzi Scheme
- Onecoin retiring their onetime 'blockchain' too launching a novel i inward Oct to construct to a greater extent than Onecoins!
Bullshit checklist:
The Bitcoin Bullshit List
Your postal service advocates a new:
(x) Altcoin
(x) Permissioned blockchain
(x) Centralised / decentralised exchange
(x) Remittance service
(x) Gambling website
(x) Investment scheme
(x) Wallet
(x) Mining service (hardware, software, etc.)
(x) Mining pool
Your persuasion volition non work. Here is why it won't work.
(x) The proposed safety model is (x) flawed / ( ) non plenty / (x) completely incorrect too thus yous volition last ( ) scammed / ( ) hacked / ( ) stolen from / (x) implode quickly
(x) There is already a production on the marketplace that does precisely what you’re doing, but (x) faster / (x) cheaper / (x) ameliorate / (x) is to a greater extent than established / (x) is non a scam
(x) You are proposing exorbitant fees for the job of your production that are unsustainable inward the long run
(x) Your production gives unfair preferential handling to (x) yourself / (x) the earliest adopters / ( ) early on investors / ( ) select few / ( ) _____________________
(x) You violate the meat principles of Bitcoin, including: (x) meat cryptography of the protocol / ( ) 21M money trammel / ( ) money distribution / (x) ownership of individual keys / (x) inclusive nature of the network / (x) pseudonymity of users / (x) lack of transaction censorship / ( ) ______________
(x) You hope unreasonable render on investment without a clear job concern model of where the money is coming from
(x) Your projection cannot last run legally at your jurisdiction
(x) Your projection volition non last compliant amongst the electrical current ( ) KYC / ( ) AML / (x) gambling / (x) MLM regulations
(x) You rely on proprietary ( ) hardware / (x) software / ( ) intellectual belongings / ( ) _________
x) Your solution is worse than general-purpose computing hardware / software
(x) Your production is poorly implemented
(x) Your presale tokens have got no economical value
(x) Your adoption goals are unrealistic
(x) Your production has null transparency
Specifically, your conception fails to job concern human relationship for:
(x) The existing regulations
(x) The required Money Services Business license
(x) The anonymous nature of cryptography
(x) The geopolitical map of the world
(x) Adaptability to growth of the marketplace cap
(x) The miner incentives
(x) Public reluctance to have got weird novel forms of money
(x) Huge existing software too hardware investment inward Bitcoin
(x) The known safety exploits of the existing Internet services
(x) Secrecy of information decryption
(x) Increase inward currency unit of measurement provide non beingness the same affair every bit increment inward wealth
(x) Disproportionate increment inward currency units drains wealth from i grouping into another
(x) The long-term sustainability of the project
too the next philosophical objections may also apply:
(x) It is a MLM scam
(x) It is a heart too dump
(x) It is a (x) ponzi / (x) pyramid / ( ) ___________ scheme
(x) Influenza A virus subtype H5N1 known (x) scammer / (x) soul amongst wretched reputation is involved amongst your project
(x) Why should nosotros have got to trust yous too your servers?
(x) Incompatibility amongst opened upwards rootage or opened upwards rootage licenses
(x) Feel-good measures create nil to solve the problem
(x) Extraordinary claims require extraordinary testify (aka “Proof or GTFO”)
(x) I don’t trust YOU amongst the money
Furthermore, this is what I recall most you:
(x) Sorry dude, but I don't recall it would work.
(x) This is a stupid idea, too you're a stupid soul for suggesting it.
(x) You’re a scammer too yous should experience bad.
Bitcoin Bullshit Tier
You are advertising a novel Bitcoin / crypto related project. Based on the information provided, yous have got reached the Bullshit Tier of four for the next reasons:
Bitcoin Bullshit Tier 1 - marketing babble, engineering scientific discipline misunderstanding
(x) “Blockchain”
(x) “As proficient every bit / ameliorate than Bitcoin”
(x) Misunderstanding the technology
Bitcoin Bullshit Tier 2 - willful misinformation, bait too switch
(x) Selling overpriced / underperforming hardware or software
(x) Claiming your projection tin accomplish something difficult without a clear explanation of how to create so
Bitcoin Bullshit Tier three - Many ruddy flags
(x) Assuring your production is legal
(x) Speaking most profits / render on investment
(x) Providing no society contact information
(x) Multiplying coins
(x) Rebooting the blockchain
(x) Company beingness hosted inward difficult to orbit countries
(x) Claiming your production services / is available at a large sum of institutions without a proof
Bitcoin Bullshit Tier four - Outright scams
(x) High render on investment
(x) Describing a fiscal safety too claiming it’s non a security
Sumber http://tpbit.blogspot.com/
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