I write in response to your editorial titled “If cryptocurrency is illegal, why hasn’t the Government outlawed it?”
First and foremost, “cryptocurrency” is not dissimilar from learning a new trade. Governments are typically as ill-informed about it as the general public.
Here is an excellent Rule of Thumb: If it “costs money to join,” it is a “Club,” not a crypto. If $1.00 can be directly exchanged on an open market, then it is much more likely a cryptocurrency.
In Onecoin’s case, there is exactly zero proof that the alleged technology even exists. This is the reason that both cryptocurrency experts and governments around the world have taken particular issue to what has been promoted as “The Bitcoin Killer.”
Common arguments for Onecoin are naive and lack logic, such as “no one believed in bitcoin in 2009 and people called it a scam.” Well, guess what, butter cups? That was a decade ago! This argument is akin to creating “The Motorola Pager Killer!” The industry is waaaaaaay past that already and we are creating 2.0 and 3.0 advancements in the crypto space.
Meanwhile, Onecoin has neither offered anything new or demonstrated competence in anything they say or do ....and 95% of the leaders have gone on to other projects, including the 2 Founders: Ruja Ignatova and Sebastian Greenwood (who both fled the company and went into hiding from Authorities after mounting criminal investigations around the world, and in the latter’s case, $7.14M being seized from his Chinese bank after China confirmed the arrests of 119 Onecoin promoters for illegal pyramid sales).
The most simple point of Onecoin being a Ponzi scam is that it requires new investor money to pay out existing investors and its price is dictated and invented by itself (although they, themselves, do not accept it as payment).
At a rate of 50,000 alleged Onecoins being allegedly put into circulation per minute, the total circulation since October 1st, 2016 is over 53,000,000,000 at a made-up price of 26.95 Euro each. This is approximately $1.4 TRILLION dollars, which is almost the same “value” of all USD in circulation around the world.
Onecoin and its scam leaders prey upon both the elderly, as well as those who have literally no understanding of economics, cryptocurrency or blockchain technology.
Blockchain tech was created for a simple reason:
To provide a transparent and “trust-less” system of exchange between 2 parties who don’t even know each other. The term “trust-less” meaning that transaction verifications are math based and NOT based on “trust,” as in Onecoin’s case.
While Onecoin is one of the most obvious scams in the cryptocurrency space (despite not even being a cryptocurrency, by any definition), there are other scams which loosely do fit the definition - generally “pump & dump” schemes.
For this reason, governments seem to be taking additional time to figure out, and appear to be looking to other governments like USA, Germany, etc., to figure out how to carve out regulations and definitions.
Be careful out there. You can’t “MLM money.”
Start studying and learning about the top 10 crypto’s at this link:
www.coinmarketcap.com if you want to begin understanding it.
Take your time. Never invest in anything you don’t understand. And never invest more than you are willing to lose, in the worse case scenario.