Is OneCoin a pyramid scheme

Here we will post all original accusations and arguments people who hate onecoin wrote all over blogs and comments. We will deeply analyze, dissect and answer everything with objective arguments. People will be left to decide which arguments are more logical and true to them
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Igorkrnic
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Is OneCoin a pyramid scheme

Post by Igorkrnic » Mon Jun 26, 2017 12:10 pm

Since accusation of being ponzi can only originate from ignorants who either do not understand what ponzi is or do not understand Onecoin operations and they address only those who work against Onecoin policy. That is kinda dumb. It's like saying police is bad only if some policemen molested you.

One more "argument" is that Onecoin is also illegal pyramid scheme and therefore many EU countries that forbid such doing by law began investigating Onecoin because many public claims and accusations were also addressed to governments so it is natural for the government to investigate what is going on. No direct Onecoin/Onelife investigation finished with the conviction that Onelife is illegal pyramid based on company policies. Italy made verdict against individual leaders because their whole Onelife structure practiced Onelife business as a pyramid. Nothing to do with the company itself.

Let's start by making clear what illegal pyramid scheme is. This article in Investopedia explains is.
An individual or a company initiates a pyramid scheme by recruiting investors with an offer of guaranteed high returns. As the scheme begins, the earliest investors do receive a high rate of return, but these gains are paid for by new recruits and are not a return on any real investment. From the moment the scam is initiated, a pyramid scheme's liabilities begin to exceed its assets. The only way it can generate wealth is by promising extraordinary returns to new recruits; the only way these returns receive payment is by getting additional investors. Invariably these schemes lose steam and the pyramid collapses.
Business Pyramids
On their face, multi-level marketing companies are structured like a pyramid. Individuals have the opportunity to invest in their own businesses, which, ostensibly, distribute a product. However, with some companies, the real profit opportunity comes not from selling products but from inducing others into buying into their own business, with a percentage of the investment moving up the hierarchy of recruiters. Among the more high-profile multi-level marketing companies to be investigated as a pyramid scheme is Herbalife Ltd. Herbalife distributors can make money just by selling the company’s products, but they must purchase and sell thousands of dollars' worth of the products before they realize a profit. Critics allege that the company's top recruiters receive the vast majority of profits.
So basically, illegal pyramid schemes are systems where there is no real product involved and more than half to all profits are made solely by recruiting new members and to lure them by offering some big returns from investment but at the end, it boils down that they can only earn money if they recruit more people and that collapses over time. They even mention that Herbalife might be a pyramid, or at least have some pyramid aspects because in order to remain certain rank you are forced to requalify and sometimes that means you need to buy many products. When on certain ranks you are entitled to some royalties and auto ships that might look as a pyramid to someone. I wouldn't go into it whether Herbalife is a pyramid, it might have some aspects of it, but let's see how Onecoin operates, or should we say, Onelife since Onecoin can not be purchased and Onecoin does not sell anything.

If you want to join Onelife and start a business at educating people about cryptocurrencies, you do not need to pay anything. Your mentor that introduced Onelife to you will teach you everything, you will get all Onelife educational material for free. According to Onelife compensation plan you do not even need to purchase Oneacademy education. So, all you need to do is learn the rules, open free account at Onelife and start selling products. You do not need to recruit anyone in order to earn money. Simply educate people on cryptocrurrencies, about Onecoin, explain to them how to get to Onecoins (by purchasing an Educational pack that you sell) and if they believe in the project, when you make a sale, you are entitled some profit of that sale. So you did not recruit your end customer, you just sold him an Educational package, along with it, he got free promotional tokens that granted him Onecoins. If you educated him properly, he will read his education, learn something from it, and he will keep Onecoins and hope for the best (the same as all the ICOs out there only guarantees hope to fundraiser participants) or exchange them to OFC, the future stocks when the company lists on the stock exchange.
So, you joined business for free, you sold education, you got profit out of it. Then you sell 10 more educations, you earn money from it. Next 3 months you sell 500 educations and earn money from it. And you earned that money by recruiting ZERO people.
How is it a pyramid then? It isn't. It's a multilevel marketing company with the legit compensation plan. There are no auto ships, no monthly or yearly requirements, you do not need to requalify for your rank, you earn money ONLY if you make a sale to end user, no need recruiting him and also you earn some small amount of money if some of your friends decided to start selling themselves. They are your downline. So you also earn some small percentage from their sale. It is wrong to bash top leaders who first joined the business for earning so much money because they have hundreds of thousands of people in their downline. Imagine some classic company, top management collects most of the profit, and a very large chunk of profit goes to marketing budget to pay advertisements on TV and such. In MLM, a smaller percent of income remains for company's logistics, and the majority of income is distributed to direct sellers for their effort. That's why is can be better to work in MLM than in classic company because the more you work in a classic company means your bosses will earn more but does not mean you will earn more. In MLM, the more you work is directly reflected on how much you earn.

And since Onelife sells actual products, you do not need to recruit people to be able to earn, and no requirements are being made by the company, this can not be an illegal pyramid.

If some people are using Onecoin as an investment scheme and do not put the focus on Education, if they only ask for payments and if they require you to recruit people, then they work against company's rules. They should get arrested, but that does not mean that Onelife and Onecoin are a pyramid.

The same happened with Bitcoin in Bolivia. The government arrested 60 people for using Bitcoin in a pyramid scheme. Is bitcoin pyramid scheme just because some people used it to practice one? No, it's not. Also bitcoin news made sure to explain that Bolivia acted against pyramid scheme, not against the Bitcon.

But they were so eager to report that India arrested people because of Onecoin, not because they just used Onecoin to practice pyramid scheme against the companies rules. Double standards.

CryptoXpose
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Re: Is OneCoin a pyramid scheme

Post by CryptoXpose » Mon Jun 26, 2017 2:21 pm

BS again in order to try to bluff authorities. Eveybody knows that you will need in practise to buy quite high value package if you want to make any kind of considerable money with the bonuses, because of the max bonus limits and other limits, which severely restrict network bonuses, unless you buy a higher value package like Tycoon. http://allaboutonecoin.com/onecoin-bonus-plan/

It's very interesting what will happen in Norway. Norway's gaming board already announced that it wants all the names of the people connected with OneCoin in Norway. As per the Norwegian Lottery Act, MLM companies that derive more than 50% of commission revenue from internal sources (affiliates), operate illegally as pyramid schemes. As OneLife/OneCoin has no retail sales at all, we may very well soon see news that OneCoin operates as an illegal pyramid in Norway.

Igorkrnic
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Re: Is OneCoin a pyramid scheme

Post by Igorkrnic » Mon Jun 26, 2017 4:24 pm

CryptoXpose wrote:
Mon Jun 26, 2017 2:21 pm
BS again in order to try to bluff authorities. Eveybody knows that you will need in practise to buy quite high value package if you want to make any kind of considerable money with the bonuses, because of the max bonus limits and other limits, which severely restrict network bonuses, unless you buy a higher value package like Tycoon. http://allaboutonecoin.com/onecoin-bonus-plan/
Basically, you say that if someone wants to make a full profit he needs to purchase tycoon package and that is wrong ? Your logic seems to be so weird or just lack of understanding MLM. What does this have to do with pyramid scheme?
It is simple compensation plan. Each higher package gives you higher max out. Point is that if you will have several depths of your network you probably can afford to buy tycoon package anyway. Also, if you are into this business, you are in not only to make money, you believe in Onecoin vision and you should also have as many coins as possible so this is a good way to incentivise.
I see nothing wrong with this part of the compensation plan, it is actually the only small "requirement" in Onelife since there are no more requirements what so ever like in other MLMs. In each MLM you are required to keep purchasing products in order to maintain some of your comp plan profits. In Onelife, only max out is determined by the level of education that you have. Nothing else. If other MLMs are not pyramids with all the requirements they have, Onelife is certainly not. In fact, max out is what differs Onelife from other failed businesses, they made too many promises to distributors and could not keep up so they failed. You guys say those are scams, but the fact is they were only poorly designed business models. Onelife is pretty well designed what is why it will not collapse at all. Of course, if some distributors want to earn even more than one tycoon package per week max out they are entitled to buy 100 tycoon packages. This now goes to the territory of strategy.
I see where this comes from with you. On zoom meeting, you guys also said it is illegal that people are only buying Education packages because they want Onecoins. Well, I can't believe I am arguing you with this really. Anyone can do whatever he wants. I already gave this example, if Coca Cola makes promotion with some free football player pictures you would probably then say that it would be illegal for me to buy 1000 coca cola bottles just because I want to have 1000 football pictures. That boils down to personal preference so it can not be debated. Personal opinions are not debatable. You not liking Education as the product is not debatable, it is your personal preference.
CryptoXpose wrote:
Mon Jun 26, 2017 2:21 pm
It's very interesting what will happen in Norway. Norway's gaming board already announced that it wants all the names of the people connected with OneCoin in Norway. As per the Norwegian Lottery Act, MLM companies that derive more than 50% of commission revenue from internal sources (affiliates), operate illegally as pyramid schemes. As OneLife/OneCoin has no retail sales at all, we may very well soon see news that OneCoin operates as an illegal pyramid in Norway.
The way I read that news that was actually written on some casino website is that Norway is asking from the company the list of people that made the profit with Onelife business. If they were investigating illegal pyramid scheme, why would they ask for members from Norway? Such investigation only requires acquiring Company's legal and compliance documents to see User Agreement and Compensation plan. From them, you can already see if it is a pyramid scheme or not. Then remains to keep monitoring if those members actually stick to company's rules.
It looks to me more that Norway wants to check Onelife members to make sure they had paid taxes for their profits.

If Norway classifies MLM that makes 55% of income just from recruitment, then Onelife can not be an illegal pyramid scheme cause 100% of the money comes only from retail sale. There is no money coming in nor profit only by recruiting people. I did mention above that in Onelife anyone can start working without even buying an educational package. As soon as he makes a retail sale and makes a profit, he can purchase package. Members do actually want to have as much Onecoins as possible.

CryptoXpose
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Re: Is OneCoin a pyramid scheme

Post by CryptoXpose » Mon Jun 26, 2017 8:55 pm

It's not retail sale, if the only way you can buy education is becoming a member.

Here's the scanned image, and below it the translation, of the letter sent by Norwegian Gaming board to the law firm representing OneLife in Norway:
http://rettit.no/mrbitcoin/index.php?ti ... ritilsynet
If some people are using Onecoin as an investment scheme and do not put the focus on Education
LOL. There's tons of OneLife/OneCoin events on Youtube. Show me 1 event which concentrates on the financial education. There's not one... And everybody knows it. Do you really think I don't know all this BS about education which you are writing?? :D
The problem here is, there's probably not even 1 member who joined OneCoin/OneLife because of education.

They joined because of "incredible opportunity!!! Look what happened with BitCoin!!! We have even better coin!!!" etc etc etc BS.

Igorkrnic
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Re: Is OneCoin a pyramid scheme

Post by Igorkrnic » Mon Jun 26, 2017 9:48 pm

CryptoXpose wrote:
Mon Jun 26, 2017 8:55 pm
It's not retail sale, if the only way you can buy education is becoming a member.
You become a member like you just need an account so you can activate your education code. No need to recruit any people.
The same as if I want to buy any digital product like software, I need an account at the company to redeem my code.
What pyramid laws forbid is people making money only if they recruit others to work. Not the case here. I explained above. No need to repeat.
CryptoXpose wrote:
Mon Jun 26, 2017 8:55 pm
Here's the scanned image, and below it the translation, of the letter sent by Norwegian Gaming board to the law firm representing OneLife in Norway:
http://rettit.no/mrbitcoin/index.php?ti ... ritilsynet
Thanks. It "surprised" me that Bjorn is the one holding that document :D
I have nothing new to say to that one except now I know it is real. I do question everything if you didn't notice. Especially inside onelife members after that swiss bad translation that I did not check at all...
So, Norway wants to know who earned money with Onelife to check them for taxes and also to see if they earn more than 50% just from recruitments. Let them work.
CryptoXpose wrote:
Mon Jun 26, 2017 8:55 pm
If some people are using Onecoin as an investment scheme and do not put the focus on Education
LOL. There's tons of OneLife/OneCoin events on Youtube. Show me 1 event which concentrates on the financial education. There's not one... And everybody knows it. Do you really think I don't know all this BS about education which you are writing?? :D
The problem here is, there's probably not even 1 member who joined OneCoin/OneLife because of education.

They joined because of "incredible opportunity!!! Look what happened with BitCoin!!! We have even better coin!!!" etc etc etc BS.
You don't understand the difference between Onelife events and actual selling moments. Events aren't there to make a sale. Mostly Onelife members attend events and seminars, but they also bring some number of new people that are not members yet but they are interested either only to buy education and own some Onecoins or to also start working but they were already explained whole concept before they come to the event, cause event is there to show them closer about Onecoin vision.
Members and those new guys are all already familiar with the concept so events are indeed needed to be all about the Onecoin vision but also Education is in focus too. I could go now and search for such speeches but to be honest not gonna waste time proving this to you cause what ever I prove you just go on with something else :)

And yes, joining Onelife is ALL about educating others about these cryptocurrencies and this great system.

I always disagreed comparing Onecoin to Bitcoin. I hated when the company used Ads like "Bitcoin killer". That was so low, and so disrespectful to Onecoin cause it can not be compared to bitcoin in any way. In my opinion, Onecoin could be much better. But much to work stil.
Bitcoin is falling apart with performance, speculation and consensus issues. It will never be able to serve as a mass payment method.

Onecoin has potential to do it. But of course you ignorants do not see it happening and you express your opinions as facts.
But I must agree that Onelife members really do give you reason to still do it :D

Cryptoamateur
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Re: Is OneCoin a pyramid scheme

Post by Cryptoamateur » Wed Jun 28, 2017 11:56 pm

Why are some people worried about financial education (or lack of it) during OneCoin events? OneCoin has dedicated an ENTIRE Online Academy for this purpose! any other cruptocurrency that offers high quality online academic courses on financial education, trading, stocks, risks, markets and behavioural finance?
www.oneacademy.eu

Igorkrnic
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Re: Is OneCoin a pyramid scheme

Post by Igorkrnic » Thu Jun 29, 2017 9:07 am

Well, some people think Oneacademy education is worthless, it should be free and they have an opinion that it is illegal to buy more of the same education packages if you want to have more onecoins. Since Education code is the only way to get coins currently

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