Today we are going to take a look at one of the biggest opportunities to become rich quickly that has been around for 3 years. You have probably learned if something is too good to be true it probably is. And that is what I always say. Is OneCoin Legit? Find out in the next 3 minutes.
Founders: Dr. Ruja Ignatova
Verdict: Not Recommended. (Check Out My #1 Recommendation)
Onecoin is a cryptocurrency which is created only a few years ago in 2014. Even though it sounds similar to bitcoins, it’s totally different. Founders of onecoin want to advertise as a better and updated version of bitcoin because it gives them more money and followers.
However, I think that onecoin is not as reliable as bitcoin and I think it’s actually a Ponzi scheme. Let me explain later.
I must admit that founder of Onecoin doesn’t look like a typical businesswoman or the founder of a cryptocurrency. She is 36 (34 when OneCoin was created) years old beautiful lawyer from Ukraine.
Ignatova has a lot of charisma and confidence when she’s advertising her cryptocurrency. OneCoin has probably made her a billionaire or at least very rich. But did she do it with honest methods while maintaining a clean conscience? I don’t think so.
Many figureheads of OneCoin are from Finland which is especially interesting for me because I am originally from Finland. I saw a statistic showing that one of the top earners of all MLMs in the world is the Finnish guy from OneCoin but now he’s currently living in Thailand.
Even though the founders of OneCoin market is as a similar (and better) cryptocurrency like bitcoin, it’s not. It is very similar to Multi Level Marketing (MLM) because it has many different packages, levels, compensation plans and other similar stuff.
In the image above, you can see 8 different kinds of packages what they have. In addition, they have something even more expensive ones if you want to
lose invest more of your money.
They have many kinds of rewards for buying packages and it would take a long while to explain them all. You have a quick look at the video below if you are interested. Notice that it takes 22 minutes and 30 seconds to explain OneCoin Compensation Plan.
WARNING: Video seems to been made a by a guy who is promoting OneCoin so don’t believe every word what he says. He may be unreliable in something that he says.
The idea of bitcoin is clear and simple. It’s a currency that you can use already in many places including some Subway restaurants and in other big companies. In addition, there is no inflation and the transaction happens almost immediately. The code is open for everyone and everything is transparent. These are just a few benefits of bitcoin.
Let’s compare it to OneCoin.
1.I am not 100% sure if you can pay anywhere with onecoin. I guess that you can’t but tell me if I’m wrong.
2.Only one company knows the code and they can change it like they want. Basically, they can decide if they give money back to you or not.
3.There are complicated compensation systems and levels unlike in bitcoin.
4.Bitcoin seems to be more like a worldwide project while onecoin seems to be just one company’s show.
If you don’t remember what is a Ponzi scheme, I wrote an article a little while ago where I explained what is it and how does work. The idea goes like this in a nutshell. Somebody creates a system and promises a huge return on investments for everybody who joins his system. The idea is that there isn’t actually any real product but what members get is only a hope of becoming rich.
When new people join the system, they give their money to the people who joined before them. Founders and those joined in first become rich while newcomers become poor. The only way to get your money back or to earn more is to get new people in. Many people become so desperate that they start inviting their friends and family members to join.
The system becomes bigger and bigger. But when new people stop coming, it starts to collapse and ultimately ends. In that point, the founders have usually gone somewhere far away that nobody can’t find them anymore.
In my opinion, onecoin fulfills all characteristics of a Ponzi scheme. They don’t provide any value but only a hope of becoming rich and lots of hype!
That’s the idea of most cryptocurrencies, “Pump-and-dump”. Somebody creates a new cryptocurrency and wants everybody to join. When many people have joined, the founder sells all his currency and walks away rich. Who paid him? Those guys who joined the Ponzi scheme. Fortunately, Bitcoin doesn’t seem to be a Ponzi scheme.
In my opinion, onecoin is a scam. They have these huge promises and big talks but nothing real. They get people to join them with the charisma of a few leaders. That’s typical for MLMs. They have conferences with powerful music and with lots of emotions. A speaker is shouting and trying to get spectators excited. Then, in the end, they will collect money of all innocent people who refuse to think with their own brain.
I recommend that you should stop chasing this kind of “get rich quick” schemes right away. 99,99% of them are scams and you will just end up with no money and with a bad humor in the end. Still, I believe that it’s totally possible to escape the rat race in a short period of time by building a successful online business.
My #1 recommendation is Wealthy Affiliate because they teach step-by-step how anyone can build a thriving online business without prior knowledge. I have friends who are nowadays making $10,000 per month online with their training. I need to work still to reach those numbers but I am 100% sure and committed that I’ll reach it because my online income is growing every month.
One of the biggest benefits compared to other systems Wealthy Affiliate has is that you can start for 100% free. You don’t need to invest even a single penny. Compare it to most MLMs and other systems where you would need to pay lots of money before getting anything.
WA is not MLM or a “get rich quick” scheme. It is an online university with a comprehensive training. It’s also a community of online entrepreneurs. I offer you 10 interactive video lessons and 2 websites for free. Are you ready to take a challenge and start building an online business?
Have you bought OneCoin, Bitcoin or other cryptocurrencies? What kind of experiences did you have?
If you have seen some “Make Money Online” -scams, you have probably heard a term “Ponzi Scheme”. But What Is a Ponzi Scheme and How Does It Work? Today I am going to explain you in a simple manner and give a few tips how you will never fall in them.
Ponzi scheme is a fraudulent investment operation where the founder pays very high returns for initial investors. The money comes from new investors and they are paying for those who joined the program earlier. When new investors stop coming in, the system collapses.
Normally when you invest in a stock market, you can expect on average 6-8% annual interest. But Ponzi schemes promise you much higher returns, for example, 200-300% ROI. High returns entice new investors to join. And when the first investors start seeing their income, they recommend the program for others and the system grows.
Many times a Ponzi scheme is hidden under a business that looks legitimate but really is not. For example, Click Ad Xpress, Fort Ad Pays or Lotto Magic promises to give you a product but actually all returns depend on new investors.
Here simple video explains very well in 83 seconds how a Ponzi scheme works
Ponzi schemes started in the 1920s by an Italian guy called Charles Ponzi. He said that by buying postal reply coupons and redeeming them in the United States they would make a huge profit. He promised clients a 50% profit within 45 days, or 100% profit within 90 days.
When new people joined, he was able to pay high returns for the first investors. Investors had already invested more than 20 million before it collapsed after a year from starting the “business”. 20 million in 1920 equal to more than 250 million in 2017 because of the inflation. It helps you to understand that Charles Ponzi’s scheme was a big thing back then.
But after all, Charles got arrested by running this system and cheating other people. That’s what happens to most Ponzi scheme founders after all. Many times they take the money the investors have give and try to disappear. But often police finds them and puts them into a jail. Now, for example, Bernard Madoff is sitting in jail for the rest of his life (or until 2139) because of his Ponzi scam back in 2008.
It gives us a lesson that doesn’t ever create a Ponzi scheme. For me, it’s even hard to understand how some people can become so immoral that they start cheating people with Ponzi schemes. That’s why the Book of books says:
For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.
Money itself can be a neutral thing but if you love it more than anything else, your values are not very good, in my opinion. That’s why I recommend making money online by providing value for other people.
Nobody wants to get scammed. That’s why I have written you 5 principles how to avoid scams online. If you follow those rules you will never get scammed. But let’s concentrate today on Ponzi schemes. How to avoid them.
1.If somebody promises very high returns on investments, be careful. I am not saying that high returns on investments are not possible. I, for example, made a 1500€ profit with 500€ investment with bitcoins which is not a Ponzi scheme. Some of my friends have made even tens of thousands of euros in a short period of time with bitcoins. High returns are possible but you must be are careful when somebody is promising something like that.
2.Investigate what is the business model/system all about. Is there a real business or are they just promising something that isn’t real? The business where you are investing must provide some kind of value.
3.Read reviews. Nowadays we don’t need to trust only what our friend says because we can check the information also on the Internet. Google the system and write, “Is xxxxxx a Scam?”. Then check 5-10 ten articles to find out the answer. But remember that people may be promoting Ponzi schemes so you need to be careful with some reviews. That’s why the free trial of the system gives a better picture.
I would like to hear from you also. How could you avoid Ponzi schemes? Leave a comment below.
Let’s take a short summary what are the characteristics of a Ponzi scheme:
1.Promises ultimately high return on investments
2.Not a real business model = Doesn’t provide any real value
3.New investors high returns make possible
4.System collapses when nobody joins the system again
I am glad that I have never fallen into a Ponzi scheme. The first real “make money online” -program that I found was Wealthy Affiliate and it turned out to be a legitimate system. They teach how anybody can build a real online business even without former experience. I saw there people who were making more than $10,000/month online and living like a king in China.
My first thought was that it must be a scam. But when I got to know these people personally and saw more and more examples, I realized that Wealthy Affiliate training works. Nowadays I am making money online every month and I planning to become a full-time online entrepreneur soon. Then I will also move to Asia like my mentor in Wealthy Affiliate (nowadays he lives again in U.S). If you are interested in making money online, I recommend taking a closer look at WA.
Have you ever seen Ponzi schemes online?