In my opinion, based on 2 years following Onecoin, and being in the crypto market since 2010, I can say that this is well-disguised part of anti-Onecoin propaganda although it is not mentioned by the name conveniently.
As usual, all the "scam" arguments are totally the same misleading fake news and lies that we could see everywhere and they have nothing to do with the cryptocurrency company. Author here RIPs MLM because of cryptocurrenciies where the reality that cryptocurrency is being damaged by uneducated scammers from MLM. Most promoters are honest people who are developing their knowledge but scammers are loud enough unfortunately.
So, who is Randy Gage? I am not good networker but I follow industry since 2002 and I had never heard of him but here is what the author says:
He seems to be MLM industry critique, but at the same time he is network marketing distributor, I guess working for some or even his own company.Randy Gage is a thought-provoking critical. He is the author of eleven books translated into 25 languages, including the New York Times bestsellers, Risky Is the New Safe and Mad Genius.
He has spoken to more than 2 million people across more than 50 countries, and is a member of the Speakers Hall of Fame.
Randy Gage is an active network marketing distributor.
That sounds conflicting to me. But that's just me I guess.
Well, I need to agree with him here. Too many scams are following cryptocurrencies cause they re next dot com bubble. Any company involved with a blochchain word is skyrocketing and collecting millions. China banned ICOs, and all governments and central banks warn people about cryptocurrencies. But desperate desire for fast money is overwhelming most people to invest in cryptocurrencies anyway.Randy Gage wrote:Probably the worst hustle happening in our space over the last year has been the rip-offs posing as cryptocurrency network marketing companies.
These scams use the publicity and interest about cryptocurrencies, to hijack the credibility these new currencies have. They prey on the multitudes who aren’t that cognizant of developing technologies – and lead them to believe they are investing in the next Amazon, Yahoo or Twitter.
I will also agree with the author here but "mining" is a dinosur, eco-disaster and is dying. Proof of Stake algo does not have mining as we know it, it is way more efficient, and projects sell tokens via ICO and then premines them when mainnet is ready to hit exchanges. Tokens staked by owners in such blockchains are used as gas, instead of sharing CPU power. One transaction today in bitcoin costs as much as one day of electricity for an average home.Randy Gage wrote:To set the stage, let’s go over a BASIC overview of what a cryptocurrency is. Cryptocurrencies are “virtual coins” that are “mined” by computers completing complex algorithms.
Cryptocurrencies are called alternate or digital currencies, because they don’t have a physical form like coins and regular currency. They exist on a shared data network (called a blockchain), and are independent of any central bank or government.
Now blockchains are an amazing innovation, one that will have many positive uses across many industries. Blockchains use cryptography to secure transactions, control the creation of additional units, and verify the transfer of assets. But we won’t go into all of that here.
The main problem why cryptocurrencies are not accepted by merchants is their speculative value creation nature and thus the volatility. Also, government do not accept it cause they can not be regulated since they are anonymous. KYC on the exchanges do not cut it. If those are not accepted by governments then no one can pay tax with it, so banks also will not trade them as money.Randy Gage wrote:We’re only going to look at their use for “mining” and trading cryptocurrency – and how that has been perverted as a cover to create scams masquerading as MLM or network marketing opportunities.
You can think of cryptocurrencies as a way to store value, similar to how you might hold gold or other precious metals as an investment.
But for it to be a viable currency, it means people have to actually trade it to buy things.
And when was the last time you actually paid for something with bitcoin, or another form of cryptocurrency? This doesn’t mean that bitcoin or other cryptocurrencies won’t actually reach a point where they are freely used as currency, only that it hasn’t happened yet.
And actually, if you did pay for something recently with bitcoin, you probably made a very foolish decision. Because bitcoin has been on a steady rise in value since its inception, breaking $1,000, $3,000 and as I’m writing this, more than $7,000. That’s great if you’re an investor, right? But not very conducive to using it as a currency.
(As a side note, the first documented bitcoin transaction was to pay for a pizza order. According to the bitcoin market value as I write this, that tasty lunch cost more than $7 million. So hopefully they got extra cheese, or a free refill on the soda.) The problem with cryptocurrencies for network marketing…
So what is the solution? What if some cryptocurrency would be able to control the value by controlling supply to match the demand? Just like central banks do with fiat currencies? What if some cryptocurrency has KYC inside of the blockchain so governments can regulate and accept them? Would merchants accept this kind of cryptocurrency? What if we already have ONE cryptocurrency that is not yet accepted by governments but is accepted by merchants although it is not yet even publicly traded? Will we now go so low to say those merchants are idiots?
Did the author predict it or he only agreed with Mr Milton who "predicted" Bitcoin in 1999?Randy Gage wrote:Being a Libertarian who chafes at government meddling and control in my personal life, I’m intrigued by the whole idea of cryptocurrencies. In fact, readers of mine will know that I predicted their emergence years ago in my Risky Is the New Safe book.
Here is the video: https://www.youtube.com/watch?v=6MnQJFEVY7s
This is the same story all people who like cryptocurrencies repeat. They like anarchy. We live in a sick world and anarchy cannot exist. The proof is Bitcoin. While useful idiots are buzzing how it is freedom cause governments cannot touch it and it is people's freedom, they do not understand, or they hide to mention that actual handful of people own millions of bitcoins who are sleeping currently and they control all the decisions.Randy Gage wrote:My favor towards them is based upon my skepticism to trust the viability of any government currency. After all, government budgets are the biggest Ponzi schemes the world has ever known. Currencies like the dollar, peso and pound do not hold any intrinsic value; they are simply promises to pay. They can be valued and devalued by the whims of a government bureaucrat. (And constantly are.)
So regarding the concept of cryptocurrencies, I’m a big fan. They have the potential to facilitate secure, authenticated transactions between a buyer and seller, without the intervention of a bank or a government.
So if I hold my Bitcoins, and someone unknown is controlling its price, and I bought them at $7000 per BTC, am I smart or crazy? Or maybe it would be better to hold cryptocurrency that will be controlled by the company that we know and can visit or sue anytime they break their own rules.
The irony is, although such people like crypto "freedom" China proved that it is not really so free. They banned ICOs cause most of them are scams, until they regulate it. They banned Bitcoin exchanges from trading crypto/fiat. But then the whole market just switched back to other countries. What if those countries follow? And they are slowly. Vietnam and Malaysia are the first to follow, Russia will never accept Bitcoin according to the officials. And crypto community is mocking China as it did not impact Bitcoin? How about their announcement to cut the cheap electricity to mining farms. Do you know that 71% of bitcoin hashing power comes from China in only 5 mining pools (5 people own them)? What would bitcoin transaction fee be if miners do not get cheap electricity? Will they move to other countries? What if they follow?
The solution is to make more efficient cryptocurrency. This man only follows what Bitcoin protagonists preach.
I see no point in this example. How can anyone make his product out of fiat currency? To me, this is insulting to people who read and follow this man.Randy Gage wrote:But to start a network marketing company and build the product line around a cryptocurrency, is simply a laughable idea.
It would be like starting an MLM company and announcing that the product line was the U.S. dollar or the Japanese Yen. What would be the business proposal?
“Buy this $20 bill for $27 and maybe next year it is worth $30.”
I totally agree with this as it is the truth. It did not start that way, it was meant to be currency for exchanging goods and services from the start but how did it end up as trading asset only? Because it was not regulated and subjected to speculators who made it like this. It is the open nature of Bitcoin and others. The solution, again, is the central entity that can control and protect the currency from the speculation.Randy Gage wrote:People who invest in a cryptocurrency today are betting it is going to rise in value. They’re not likely to use it to purchase anything. So it’s not really acting as a currency, but an investment vehicle. So you can make the argument that you are a currency trader.
It is disappointing if I as a "nobody" need to point out how stupid this sounds. The whole marketing science divides roughly into two parts:Randy Gage wrote:But cryptocurrencies are certainly not a viable product line for a direct selling or network marketing company.
1) Classic marketing - the company uses the budget to pay intermediate companies to place its products to end users. A lot of money goes to small group of people owning those marketing companies. You are free to sell anything that is not forbidden by law and people are willing to pay for it.
2) Network marketing - the company does not send huge budget to a small number of people to place their product, instead, they use a large number of people to directly sell their product and spread that money into the network. The same as classic companies, network marketing companies are allowed to sell any legal product that people are willing to pay!
So who are we to decide if some company can promote its cryptocurrency via the classic marketing, and not via network marketing.
It is true that right now ICO does not give you the company ownership share cause it is not even regulated nor recognized by governments or any financial regulatory body. ICO, however, does give you share of the market cap of that cryptocurrency but being unregulated, you are not protected from speculators. Maybe some company should conduct their own way of ICO where they regulate everything to protect participants all the way through to the public trading.Randy Gage wrote:So how do the cryptocurrency companies claim to be viable network marketing opportunities? That’s where ICOs come in…
ICOs (initial coin offerings) are the cryptocurrency equivalent of a stock market IPO. And just as much of a crapshoot. (Actually, probably a lot more.) Here’s how they work.
Usually, an ICO involves a company raising money by selling a new digital currency. If you buy it, you receive a “token” which they assign a value to. But unlike an IPO in the stock market, the token does not give you any ownership rights in the company, or entitle you to any sort of cash flows like dividends.
It is important to note that the Author is aware that the company is the one to assign the value to ICO tokens
We here see some controversies of the author. He does not seem to like ICOs, he thinks most are a scam, yet he likes cryptocurrencies.Randy Gage wrote:If that cryptocurrency succeeds and appreciates in value — completely and totally based on speculation — you make a profit. But remember, there is absolutely no regulation or safeguards on this. The company that issues the tokens, can often manipulate the value in a way that benefits them. What do governments think about ICOs? Not much. They are eyeing them with wariness in some cases and outlawing them in others.
Personally, I believe ICOs will be the biggest area of fraud and victimization in the business world over the next couple years. They are ripe for abuse.
And of course, we already have people doing that in our space…
How can he like cryptocurrency and dislike ICOs when every single publicly traded cryptocurrency came here from the whitepaper full of promises through ICO to the public trading and delivering tech. Ethereum started it and the rest followed. ICO popularity brought scammers in too recently.
The only crypto who had "unconventional" ICO was Bitcoin, it took it 4 years from the launch to the proper public trading as we know it today. MtGox in 2010 was only a failed attempt at trading. There is one company that decided to make its own ecosystem with a vision that actually solves all the problems cryptos have and seems like we will soon talk about it since Author is for sure not liking it.
Since it is clear to me what company Author is referring to, and how misleading it is, I will quote paragraph by paragraph.Randy Gage wrote:In the most flagrant example, a company opened by hyping bitcoin, and trying to mislead people like they were an early stage investor in bitcoin. It was presented much like an ICO launch, but wasn’t actually even that.
First of all, every single cryptocurrency that is trying to make a coin that will be value transfer medium needs to mention Bitcoin to explain to people what they are doing. This is doing more good to Bitcoin than harm so I do not see the problem with that. Onecoin started with that but they stopped long ago since they already have more users than that same Bitcoin according to recent Cambridge University study that showed 3 million people are actively using cryptocurrencies. Bitcoin price might skyrocket but transaction volume remained and it is not just the blockchain limit cause mempool is not going up too. A statement that Onecoin is misleading people that they were early adopters as in the start of Bitcoin is not a lie. At this stage, owning some Onecoin is very early. But the fact is that they might succeed and they might fail. No one can guarantee. But if people all work their job, it should be fine, cause the vision is great.
This is clear sign that author is only repeating bitcoin community anti-onecoin mantra. All the same crap rehashed from tabloid to tabloid and from one bitcoiner to another (as bitcoiner I refer to people who own bitcoins and made profit from them, such myself). Problem is that I detected a pattern with this propaganda already, seems like all those people who make such slander do not realize they are all hashing the same words that are totally not true and misleading.Randy Gage wrote:That company actually offers “educational packages” at prices from 100 euros to over 100,000 euros, offering tokens with the packages. The educational materials are tepid at best, and plagiarized at worst. And the tokens they come with have no intrinsic value, and are not negotiable for any other currency. They’re only viable in the internal money game of defrauding unsuspecting victims.
Education "is plagiarized" is so cliche invented by real Onecoin haters back in 2015 and refers to several paragraphs from OLD education scripts that can be also found on the internet for free. To say it is plagiarizing is the same as we could accuse Standford or Bradford for having similar material in their books. conveniently, they teach the same science so it is supposed to be similar or the same...But for a long time, education is done in a very professional way, by lecturers from universities. They are video and text materials. I appeal people to update their facts before making fools out of themselves no matter how experienced they are in preaching as this Author. But ok, everyone has an opinion.
Also, tokens actually have no value and they were not supposed to. They are given for free with education product as a way to get Onecoin cryptocurrency.
Ok now, this here is a total lie but I don't think the author is doing it on purpose. He is probably miseducated.Randy Gage wrote:At one point, the company claimed their tokens were the first cryptocurrency in Asia. They were touting documentation licensed by the Vietnamese government, with legal rights to be used as a digital currency. However, the Vietnamese government issued a statement that the document they were presenting as proof was actually forged.
First of all, there is a difference between One token and Onecoin, and the company never said Onecoin is the first crypto in Asia.
Hm, wait, maybe it came up from MLM THE NETWORK over there?
Vietnam license? Well, I wrote about that in this topic. It is completely produced by bad IMA, not the company, the company even made an official statement. Seems to me that Onecoin is here damaged by MLM, not the other way around as the author is preaching.
Such MLM knowledgeable person should know why Onelife does not operate in USA and not using such amateur words as "probably".Randy Gage wrote:The scam has been operating around most of the world with great hype. But it was noticeable that they never opened in the U.S., probably recognizing that doing so would result in prison sentences for the founders if they did.
The point of Education packs are to promote Onecoin of course, they offer tokens that might be categorized by SEC as a security and this is why EVERY ICO is avoiding USA and now China. In order to participate, you need to agree that you are not from there.
Also, USA law is too strict and forbids users to have multiple accounts. That would stop users who really want as many ONE as they can have from doing that and the company could not alter the whole system just because USA prison for citizens.
Do you know that USA citizens are also forbidden to buy Bitcoins on non-USA exchanges? Coinbase.com or others have like $2000 per week limit for deposits. Onecoin simply decided not to go into USA cause the rest of the world is more free.
Once again he is reviewing IMA videos and events and he judges the company? WIll we judge Herbalife company for being fined for IMA bad work?Randy Gage wrote:The company appeared to think they could avoid legal scrutiny by claiming that they weren’t actually selling cryptocurrency, only educational materials. But spend ten minutes reviewing any of their distributor videos or live events, and you’ll see that most of the time they’re talking about investing in cryptocurrency with the educational materials barely even mentioned.
Mr Gage, you know better then hash bitcoiner garbage. It is a disgrace. But then again this undermines the point of his article. Onecoin is being damaged by shady promotion of MLM who do ont follow company's guidelines.
Oneacademy Education is one of the legit products of Onelife network, there is also Tablet and Mobile App builder. We can debate if those are bad products as some debate if Herbalife shakes are crap. For me, both have their value and other people are entitled to their opinions. If they think it is bad, no one can force them to buy it.
Education is meant to bring people closer to the financial world. Some universities also charge $19k-$40k for education. But here you get tokens that bring you Onecoin cryptocurrency that is in the initial stage.
So instead of spending cash on ETH or BTC to participate some ICO, and get useless tokens and hope they will be tradable one day, Onelife sells education that you can actually use in real life, and also you get useless tokens that will get you ONE that you can ALREADY USE ad dealshaker.com to buy goods and services and will be publicly traded on October 08. 2018. Will it succeed? Maybe yes, maybe no. Use your brain before joining.
This is my favorite paragraph. Full of stabbing himself in a leg. The author made an article how MLM industry will go RIP because of cryptocurrency companies, while that might be close to the truth as we will see further, Onecoin that he indirectly mentions is the actual victim damaged by the MLM people themselves for not following company's guidelines.Randy Gage wrote:In the last few months, they have faced withering legal issues. Italy enacted an interim injunction against them, the Hungarian central bank declared it a pyramid scheme, and company leaders have been arrested in India and China. Among all this disarray, the founder has been missing in action, most likely trying to stay off the grid and avoid being arrested someplace. So you might think this company’s days are numbered, and we could lower our vigilance.
The author mentions Italy legal problems, yet he seems to forget those are only made by IMA working their own marketing scheme misleading people and Onecoin cryptocurrency company is being damaged by Authors precious MLM. I analyzed documents here.
He also mentions Hungaria declaring Onelife as a pyramid? This is outrageous from an MLM industry expert who can clearly see that this can not be a pyramid. But never the less, Hungary did not declare Onelife a pyramid, they only assembled a task force to investigate accusations by some people which is normal. They only mentioned Onelife as "pyramid-like system" referring to MLM.
India topic was also described here. That has nothing to do with the company rules, those are poorly educated IMA that were promising millions of profit. After they were arrested, slander articles were made putting two Bulgarian persons on the charge sheet. Their names were "unintentionally" misspelled and those were the only 2 people who were kinda public, founder dr Ruja (misspelled as Rjua), and Irina from legal department (misspelled as Ereena). That is all just a part of propaganda. Just like this author in my opinion.
China case is even more hilarious as I analized here cause it does not even have anything to do with Onecoin. People were arrested for some other schemes but they happened to sell onecoin too under their own terms, outside of the company's guidelines.
This is classic crap hashed all around by different people not realizing that hey are being useful idiot parrots for some people with agenda.
I can agree here. Seeing Onecoin success, many followed the same path they "only" lacked this vision of the cryptocurrency being actually usable at merchants, you know, what Bitcoin was supposed to do. But I would not be so harsh on labeling some project a scam, although I witnessed some real scams disguised behind "fixed" arguments that people used against Onecoin.Randy Gage wrote:Unfortunately, the situation is completely the opposite…
There are literally dozens of network marketing cryptocurrency scams popping up. Most of these are more outrageous than the original.
They are the perfect petri dish for development of the “greater fool theory.” (The premise of the theory is that the price of an object is determined not by any intrinsic value, but instead by irrational beliefs and expectations of market participants. A price can be justified by a rational buyer under the belief that another party is willing to pay an even higher price.)
And these new scams are making the most of this ignorant and irrational greed…
Also, the author is here contradictory again. He says mlm cryptocurrency companies use greater fool strategy when Bitcoin itself is full of it. Most people do not even believe in bitcoin but they heard how "some credible person" said it will go to $25000 in 2018 and now they are buying it at $8000 and hope someone will buy them later at higher prices so they can profit. Double standards are being used.
To some people who think it large, what is whitepaper. Seems like it is a popular term for "promise book" for all ICO investment schemes. Seems like ICO is credible if it has a whitepaper that my grandmom can write. Some are classic brochures, some are also technical but mass people do not like technical terms, just give them promises and take their money. Onecoin is still not an investment scheme, like it or not, they sell education, bringing people closer to cryptocurrency and ONE that will one day go live but you can use it even now.Randy Gage wrote:The scary part is these are getting more sophisticated each time. The original scam never published a white paper or actually offered an ICO. It’s doubtful if they really have a blockchain. But these subsequent scams have built on the duplicity of the original and are taking the hype even higher. They’ve learned all the right buzzwords and woven them into the marketing pitches.
The author should educate that Onecoin is starting actual coin offering via investments companies in 2018. Outside of MLM. And here, they will have whitepaper. If there is or there is not a blockchain, as I do not have proof of one existing, we can believe the company and sane mind will say that if something is not disclosed, maybe there is a reason for that considering so huge propaganda against them, but that is no proof that tech or dev team does not exist.
I would not go into the rest of the article cause it is not related to the "original scam" as he conveniently refers to Onecoin.
For those who follow Onecoin for 2+ years, all the "argument" he put out there are the same propaganda that bitcoin and antimlm people are repeating where they can, yet, that has nothing to do with the rules and work of the company.
As for mlm cryptocurrency scams problem, well, classic ICO are way larger so if we will RIP MLM because of that, we can as well RIP classic business too. It is all a bubble and some people will earn money, some will use, just like in dot com bubble.
As for possible future global cryptocurrency that could be accepted by governments and merchants. "original scam" here is actually the only one that solves all the crypto issues and can do it.