DEFINITION of OneCoin
OneCoin claims to be a blockchain-based digital currency system, and is promoted by OneCoin Limited, a company that operates across the globe with offices in Europe, Hong Kong and the UAE.
BREAKING DOWN OneCoin
OneCoin was launched by a Bulgarian national named Ruja Ignatova. OneCoin claims to work like any other standard cryptocurrency whose cryptocoins can be generated through the mining process, and can be used to make payments across the globe. It comes with its own e-wallet, and a total of 120 billion coins are available on the OneCoin network.
While there is no clarity about a working blockchain model or a payment system of OneCoin, it is known to sell various educational materials, including promotional and discounted combo packs, to the participants. These courses are about cryptocurrencies, trading, investments, and related matters like financial analysis and asset management.
A user is required to pay for these programs. Additionally, participants are encouraged with referral rewards to bring in more participants, a mechanism which fits a MLM scheme. There are several reports alleging OneCoin to be a ponzi scheme and the local authorities taking action against it in several countries, which include those in OneCoin's home country Bulgaria, and in UK and India.