What was the occasion about?
Trying on the three hour lengthy video of the occasion, there’s a lot to cowl. All of it strikes an uncanny resemblance to a Multilevel Advertising and marketing occasion:
We have now a variety of pomp, a variety of hype, bragging, speaking about how everyone seems to be forming an enormous “household” and asking them to begin shopping for and peddling the latest product – service provider purposes. There may be a variety of small items of knowledge right here and there on how they envision their system working, and a variety of it raises purple flags.
The occasion definitely packed a variety of showmanship – stay musical performances, essential sounding audio system and so forth. I have been to a couple cryptocurrency conferences already, and they’re utterly totally different – you hear lots concerning the know-how, new developments, and so on., and there’s a lot much less cult of character.
Service provider program
One of many extra essential however ignored elements of the occasion was the information about OneCoin’s new service provider program. There are two new packages being offered – one for $1000 that comes with one whitelabel utility, and a $5500 one which comes with seven purposes. OneCoin expects its members to buy these purposes and enroll retailers, giving them these purposes. Their aim is to achieve a million retailers within the coming years. With the service provider adoption, the coin is meant to realize liquidity and worth.
Why ought to the retailers be part of? To achieve entry to OneCoin’s “household” and the community, and so they incur no value for the primary yr. The coin needs to be “very steady” and retailers “ought to want it to PayPal, Visa, Mastercard”.
So sure, the service provider program is as they are saying “free”, and by free, they imply it prices $1000 to the person who indicators up the service provider. So the advertising and on-boarding the retailers falls on the coin customers that additionally get to pay for the privilege. However at the least you’ll lastly have some place to spend your OneCoins, proper?
Properly, not fairly. The retailers will be capable to specify what number of OneCoins they are going to be accepting. They’ll select to simply accept, say, 20% of the cost in OneCoin and 80% from the consumer’s Credit score Card (conveniently related to the account already). This means that OneCoin would not even do probably the most primary factor that each Bitcoin cost processor does – promote the cash for the service provider and pay them in fiat.
So let’s examine that to say, BitPay, one in all Bitcoin’s oldest cost processors. It permits you to enroll in free, it is free to make use of for some small quantity transactions, or it prices the service provider 1% in any other case. You possibly can settle for Bitcoin for 100% of the acquisition and also you get all your cash in no matter kind you need – BTC, wire, and so on. For OneCoin, you should have another person pay $1000 for the appliance, signal you up, then you definately specify how a lot OneCoins you’ll be accepting for each transaction, then it’s important to determine find out how to money these out (with out a actual alternate but), and also you could be charged one thing after a yr of utilizing it.
So yeah, it would not look good – extra like a barely serviceable product that you really want your present members to purchase and persuade folks to make use of to make their coin accepted someplace and thus acquire worth. It is a good MLM technique, however horrible usability technique.
Different issues
We have already lined the coin doubling event, so there is not far more to cowl in that regard. It is foolish, watching folks get excited for a 100% enhance in coin provide with out a rise in coin’s worth. So as a substitute, here’s a checklist of assorted items of knowledge that have been said thorough the occasion:
- There have been 14 million accounts created, with 2.5M energetic distributors
- The worth of the coin was 50 eurocents, now it’s 9 euros, and so they intention to get to 25 euros
- OneCoin is launching some social media web site referred to as OneSaito, which is able to function Groupon-like reductions. So it is like 2010
- “To ensure we proceed to provide cash, we want tokens, and tokens come from product packages”
- They wish to obtain important mass in a yr’s time
- “We’ll finally transfer to the following stage when what we’re doing will grow to be self-evident” – do they imply folks will catch on to the MLM construction?
- “We do not wish to create idiots”
- “Any one in all you can’ve launched Pokemon Go”
- Whoever maxes out their 35k Euro contribution on the day of the occasion may have the chance to max out one other 35k Euro contribution the next day
- “So guys in Sofia, if you don’t switch it on, we’ll come for you and kill you, yeah? Always good to motivate the office too…“
- OneCoin will probably be going into the remittance enterprise (so that they’re becoming a member of the Bitcoin hype from just a few years in the past that has already been explored by 19+ companies?)
- OneCoin will probably be going public in Q2 2018
- OneLife has created 350 millionaires in its historical past. There have been 450 diamonds in the event
- OneCoin is a particular community, as a result of it acts “like a household”
Conclusions
OneCoin is kind of clearly a MLM pyramid scheme. Fairly good truly – as a substitute of peddling merchandise folks have to begin storing of their garages and attempt to promote to different folks, they’re promoting a “crypto” forex and telling everybody to purchase as a lot as they’ll to lift it is worth. They’ve nearly no manufacturing prices, due to this fact each greenback spend is basically revenue. As an alternative of investing that cash into growth of some precise merchandise, like exchanges, cost processors, and so on., they simply get folks to purchase into the scheme increasingly, to advertise the coin additional to drive the gross sales.
Probably the most symbolic a part of the occasion came in around 2:35. The audio system speak about celebrating OneCoin’s second birthday with a cake, “the biggest cake ever” – OneCoinCake. 2×2 meters in diameter. Sadly, since there have been 11500 folks within the viewers through the occasion, “not everybody will get to style the cake”. That is maybe analogy to how OneCoin works – everybody pays for the cake, you make a big cake, and the elites will stuff themselves whereas everybody else will solely get to admire the cake from afar…
Associated hyperlinks:
#OneCoin #household #retailers
