OneCoin is one of the most infamous projects in the world of cryptocurrencies, widely discussed and criticized throughout its brief but tumultuous history. Founded in 2014 by Ruja Ignatova, OneCoin was marketed as a revolutionary cryptocurrency, capturing customers’ attention around the world. However, unlike successful cryptocurrencies such as Bitcoin, OneCoin turned out to be far different from what it initially appeared.
OneCoin emerged during a period of growing interest in cryptocurrencies, and its founder, Ruja Ignatova, capitalized on this to attract investors. She claimed that OneCoin was an alternative to Bitcoin, offering more advanced technologies that supposedly provided high transaction speed and ease of use. However, unlike Bitcoin, which is based on blockchain technology, OneCoin never provided credible evidence of its infrastructure. The entire business model was based on a multi-layered marketing system, leading to accusations that the project was a pyramid scheme.
OneCoin Failure
Problems for OneCoin began shortly after its inception. In 2017, numerous instances of financial fraud were exposed when it was revealed that the project lacked a real cryptocurrency and that its training materials and “tokens” were merely tools to lure in investment. At the end of 2017, many criminal cases were filed against the project’s founders and participants.
In 2020, 16 people were arrested in Poland for their involvement in a scheme that affected over 3 million people worldwide. The losses suffered by OneCoin victims are estimated to be in the billions of euros, making it one of the largest financial scams in history.
Comparison with Bitcoin
One of the main differences between OneCoin and Bitcoin is the fundamental basis of their internal architectures. Bitcoin, created in 2009, is a decentralized digital currency running on blockchain technology, which ensures transaction transparency. In contrast, OneCoin never had functioning blockchain technology and operated as a closed system with centralized control.
Bitcoin has become a symbol of the movement for free and independent finance. By 2021, Bitcoin price exceeded $60,000, and its community continued to grow. In contrast, OneCoin has become synonymous with fraud and loss, contributing to the general skepticism toward cryptocurrencies.
Impact
The OneCoin scandal negatively impacted the cryptocurrency market, fostering distrust of new projects and increasing regulatory scrutiny of the industry. As a result, many countries began introducing new laws and controls for ICOs to prevent possible fraudulent schemes.
The heightened regulatory environment has led to stricter requirements for new crypto projects and the emergence of auditing and transparency standards. Reducing uncertainty and unfair practices often creates healthier conditions for the development of new cryptocurrencies.
Connection with OneCoinBuy
Like OneCoin, OneCoinBuy has also faced criticism and suspicion. While it may be a different project, similar pyramid-like elements and a lack of real infrastructure should make potential investors and creators question their intentions and methods. It’s crucial to be cautious with any projects that claim to be “cryptocurrencies” but lack genuine technology or a clear legal framework.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the CryptoTotem team. This article is for informational purposes only and is not intended to be used as legal, tax, investment or financial advice. The author or the publication does not hold any responsibility, directly, or indirectly, for any damage or loss caused or alleged to be caused by or connected with the use of or reliance on any content, goods or services mentioned in this article. Readers should do their own research before taking any action on this matter.