After the success of Bitcoin, dozens of virtual currencies have tried to be the “next Bitcoin”. OneCoin is one such virtual currency that wants to capture a slice of Bitcoin’s dominant market share. Find out everything you need to know about OneCoin today in our review.
What is OneCoin?
OneCoin is a virtual currency that primarily does its business outside the United States. The company is headquartered in Europe and focuses on core markets in Southeast Asia, Europe, India, and Africa.
OneCoin is early in its development. The company’s stated goal is to create a market with over 1 million traders while issuing 2.1 billion OneCoins.
According to the official OneCoin website, OneCoin.eu, there are currently over 162,000 members and over 104 million OneCoins have been mined so far.
The currency itself is a cryptocurrency. The company claims to use “the latest cryptographic technology and security standards.” OneCoin has also partnered with another virtual currency called the Aurum coin.
The Aurum coin appears to be made by the same company as OneCoin and calls itself a “hybrid crypto-currency”. It also claims to be backed by real gold reserves.
One of the key differences between OneCoin and Bitcoin is that OneCoin is based on commission sales. OneCoin traders can make significant commissions by recruiting other people into the program and passing through the “online trading academy.”
OneCoin lists two addresses on its official website. One address for OneCoin Ltd. Is at Suite 2B at 143 Main Street in Gibraltar. The other address is for One Network Services Ltd., which is located at Tsar Osvoboditel 12, 1000 in Sofia, Bulgaria.
OneCoin heavily advertises its “opportunity”. Anyone can use this opportunity to begin enjoying the “OneLife”. What does that mean?
It means when you buy OneCoins, you can also subscribe to an online training program that teaches you how to make more money by selling OneCoins to other people.
The company claims to provide superior lifestyles to all its representatives. At the official OneCoin website, OneCoin.eu, the company says the following about the OneLife lifestyle:
“OneLife, issues OneLife vouchers to its members, that can be redeemed for luxury holidays, hotels, restaurants and experience days. Want to have an unforgettable week in Bali? Or take your family, friends and loved ones on a true life changing experience? Make sure you get in on the action and fun that OneLife provides.”
You can sign up through the official OneCoin website. Like most multilevel marketing companies, you’ll need to pay to join.
There is, however, a free package available. This free package is called The Rookie and gives you 5 Aurum coins as well as a regular newsletter that provides more information about OneCoin.
If you want to actually join the program and begin making money, then you’ll need to buy any of the product packages above The Rookie. After purchasing these packages, you’ll gain access to the OneCoin back office as well as the OneAcademy online training program and additional marketing tools. You’ll also be able to create a business profile.
What is the Aurum Coin?
The OneCoin and Aurum coins are somehow connected to one another. It seems like the same company owns both currencies, although the relationship is never really made clear. In any case, most of the OneCoin starter packages also include Aurum coins.
Aurum coins are described as a hybrid cryptocurrency. The currency claims to be based in Dubai and calls itself a “pioneer in the world of virtual currency.”
Each Aurum coin also claims to be backed by 1mg of solid gold that is physically stored at a vault in Dubai. That works out to a concrete value of about 4 cents per Aurum coin.
There’s very little information about the Aurum coin available online. When you search for it online, you’ll typically only find sites related to OneCoin.
Is OneCoin a Scam?
There are dozens of red flags that indicate OneCoin is a scam and a Ponzi scheme. We saw this happen with UFun as well with their UTokens.
First, there’s the fact that OneCoin is staying far away from the United States. The US financial industry is heavily regulated by the SEC. If OneCoin ever made it to the United States, it would likely face intense scrutiny by the SEC because the company offers an unregistered security.
Second, there’s the fact that OneCoin is based in Sofia, Bulgaria. Bulgaria is one of the worst-regulated countries in Europe. Did the founders register their company in Bulgaria hoping to avoid regulation and scrutiny?
Third, there’s absolutely no information about OneCoin available on the official website or anywhere online. The company doesn’t list any information about its management team or company structure. Whenever an MLM doesn’t provide information about the people running the company, that’s a huge warning sign.
There’s also the biggest problem: the company doesn’t explain how to use OneCoins to make any purchases. Which retailers accept OneCoins or OneTokens? Can they be used to purchase anything? It sure doesn’t seem like it.
In fact, the only way to make money through OneCoin appears to be through its binary compensation plan. You pay to join the company and then hope you can convince other people to pay thousands of Euros in joining fees. If you can convince people, then you’ll earn a 10% cut of their joining fee.
OneCoin claims to pay its commissions down four levels, although it doesn’t explain whether these payouts are paid daily, weekly, or monthly.
For all of these reasons, OneCoin appears to be a scam or Ponzi scheme with no real value or substance.
How Much Does it Cost to Join OneCoin?
OneCoin entry packages are available at 7 different levels. Those levels range from free to 5,000 Euros. Here’s how each package breaks down:
The Rookie (Free)
You get a OneCoin eBook called Think and Grow Rich as well as a weekly newsletter. You also receive 5 Aurum coins for free.
Activation Kit (30 Euros)
The Activation Kit gains you basic entry into the company and also includes an eBook copy of The Richest Man in Babylon.
Starter (100 Euros)
The Starter package gives you access to the OneAcademy online education program. This program introduces students to the world of financial products and trading. Students can watch videos, view online reading materials, and complete quizzes to help them make money by selling OneCoins.
Trader (500 Euros)
Trader packages give members access to both level 1 and level 2 of the OneAcademy online training program. The main difference between level 1 and level 2 is that level 2 covers topics like gold and cryptocurrency.
Pro Trader (1000 Euros)
This package gives students access to the first three levels of the online trading program. These three levels promise to give users the “intermediate trading skills” that can help them profit from mining and trading OneCoins.
Executive Trader (3000 Euros)
You gain access to levels 1, 2, 3, and 4 of the online OneAcademy training program. You also get a “detailed description of tools that will improve the profitability of your trades significantly.”
Tycoon Trader (5000 Euros)
The tycoon trader claims to be the “ultimate product package.” It contains all 5 levels of the OneAcademy training program and promises to help any trader raise their skills to the highest level and maximize the profits they earn from OneCoin mining and trading.
Conclusion: Who Should Join OneCoin?
OneCoin is marketed primarily towards Europeans and people in developing countries. The currency is also growing throughout Southeast Asia, India, and Africa. It has not yet broken into the North American markets and the company doesn’t appear to have any plans to do so in the near future.
With that being said, OneCoin could be a good opportunity for those who enjoy the idea of cryptocurrencies and want to join a new virtual currency early. When Bitcoin was first launched, it was priced at 10 cents. Today, it consistently hovers between $200 and $300. OneCoin wants to create a similar trajectory and make all of its members rich through commission-based virtual currency sales.
Still, there are plenty of red flags surrounding OneCoin – including the fact that the company is registered in Bulgaria and offers little information about its executive team or sales structure online.
If you’re really committed to joining OneCoin and learning about a new cryptocurrency, then I strongly recommend waiting several months to see if OneCoin becomes less secretive or gains any traction. Otherwise, you could be spending thousands of Euros on nothing.