The OneCoin pyramid scheme has come into our sight again. How can we distinguish the real from the fake among the numerous currencies?

Recently, OneCoin has been linked to the IP of Chen Man, the winner of an unjust case, and has once again attracted public attention.

If you are not in the "cryptocurrency circle", you may not know that virtual currency is a mixed field, and there are many "teams" that use this gimmick to conduct pyramid schemes and illegal fundraising.

It is too difficult for ordinary people to distinguish the authenticity of these currencies. Here are a few methods:

1. If you are promised high returns, and are asked to invest and are promised unrealistic returns, then it is definitely a scam. There is no doubt about this. If there is such a good return, would you find it so easily? There is no such thing as a free lunch. Only traps fall from the sky.

2. What is the purpose of its invention, and what efforts has the team made for this purpose? If the development team has no purpose to develop a currency, then I really can't think of any other reason except to make money. And he must work hard to do what he wants to do. I don't believe that he wants to do something but has never made any effort.

3. The team's mix and ability recognition Their vision is written in the white paper, but whether the capabilities and mix of their team members are reasonable and whether there is a lack of key positions are very important. Wanting to do something and being able to do it are not the same concept. You must understand this clearly before investing.

4. Who would believe a bunch of empty words without even a framework if there is no visible work to show for it ?

5. Have you violated the law or committed a crime? Don't be optimistic, it's useless.

Just look at the picture and you will know that pyramid schemes are best at using celebrity effects, high returns, awesome scenes and gimmicks to attract attention, and then defraud money once or multiple times. This is not only detrimental to the development of the industry, but also harms innocent people, which is really hateful.

(Statement issued by China Business Network after OneCoin illegally used the name and image of China Business Network and our host Jiang Yufei)

( This picture is a promotional picture of OneCoin on the Internet )

How OneCoin MLM deceives people:

1. Register as a member, obtain tokens, and mine OneCoin

According to a report by Xinwen Morning Post on June 30, 2015, investor Mr. Zhang said, "After paying the money, I got a website, username and password. After logging in, I can see the investment amount and the corresponding tokens. When I first joined, 6 tokens could mine 1 OneCoin, and now I have obtained 20,000 OneCoins. With the number of people and difficulty of 'mining', the ratio of how many tokens can mine OneCoin is not stable. At present, 10 tokens are used to mine 1 OneCoin, and the mining time is getting longer and longer."

In the Zhongshan case reported by Guangzhou Daily, the suspect also sold "OneCoin" barcodes and registered "OneCoin" members through the "recruiting people" pyramid scheme method.

2. Membership levels: the more money you pay, the higher your level

According to the Morning News, according to the OneCoin company's membership rules, there are 5 levels of membership, entry level, advanced level, professional level, executive level and tycoon level. Among them, entry level: invest 975 yuan, give 1,000 tokens, and 50 mg of gold. The highest tycoon level: invest 37,725 yuan, give 60,000 tokens, and 2,500 mg of gold.

In the Zhongshan case, "OneCoin" has a total of 8 levels of membership: novice level, entry level, advanced level, professional level, executive level, tycoon level, supreme level, and extreme level.

3. Selling for cash and “hoarding” to increase prices

For the mined OneCoins, you can choose to trade them when the system opens to cash out; you can also choose to "hoard" OneCoins and wait for them to appreciate.

However, in both reports, the interviewees said that they encountered many restrictions in the sales transactions. For example, the interviewee of Xinwen Morning Post said, "Each account can only sell 50 OneCoins a day"; Guangzhou Daily reported that "Each account can only sell 20 to 50 OneCoins a day according to the level. If investors want to sell OneCoins, someone must take over. When the selling order expires, the system will automatically cancel the selling order."

4. Develop downline and get commission

Compared with cashing out, OneCoin players may earn more income from commissions from “recruiting people”.

According to the Morning News, senior member Mr. Cheng said, "Every time I recruit a downline, I can get a 10% commission from the downline's membership fee. And if this downline recruits more people, I can continue to get commissions."

Guangzhou Daily reported that "uplines charge 10% to 40% of the downline's investment amount as commissions, depending on the account level," and "developing downlines can earn rewards such as direct referral awards, matching awards, and algebraic awards. After that, the downline can continue to receive commissions if it recruits more people."

(Founding team for external publicity)

I hope everyone can open their eyes and not be deceived by those shiny gimmicks, and don’t lose confidence in blockchain technology because of scams !

Related articles:

1. OneCoin is exposed: a global pyramid scheme

2. Bruce Fenton: After the collapse of OneCoin, regulators will blame all cryptocurrencies

3. How to identify pyramid schemes in digital currencies