Singapore classifies Onecoin as Ponzi?

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
Post Reply
Igorkrnic
Site Admin
Posts: 1457
Joined: Wed Jun 14, 2017 7:47 pm

Singapore classifies Onecoin as Ponzi?

Post by Igorkrnic » Tue May 29, 2018 11:58 am

Ok so our friend is getting more clear yellow blogger scammer as time passes and there is lack of Onecoin writings about the actual company, they are able to produce news only if Onecoin is mentioned.

There is the recent article:

Image

This is an official link to this article and let's analyze the majority of it, not just focus on the paragraph that says Onecoin:
https://www.gov.sg/factually/content/digital-tokens
What are digital tokens?

Digital tokens refer generally to a category of digitally-recorded instruments, which include digital payment tokens, or more commonly known as cryptocurrencies, and tokens issued through initial coin offerings.

Because digital tokens aren’t issued by any government, they’re not legal tender. This means that consumers can only use digital tokens to pay merchants who are willing to accept them at whatever exchange value the merchants offer, as a mode of payment. Like most other jurisdictions, the Monetary Authority of Singapore currently does not regulate digital tokens.
Ok so here we need their definition of the digital token, and they seem to think it can be used to pay goods and services at merchants? Well, Onecoin sure fits there even now while not yet public.
Also, we see here SG monetary authority does not regulate those, and this is for all of them, not just Onecoin. This regulation might never happen cause it is a central bank, and cryptos are to circumvent central banks so we need to wait for the actual government to make some new authority agency to regulate cryptos. As we know, Onecoin is the easiest to work with governments so future seems ok there.

Why do digital tokens seem so popular?

With thousands of digital tokens worldwide, including Bitcoin, Ether, and Litecoin, it seems like a whole new world of possibilities. Last year’s surging markets also led some people to think that digital tokens could make them money quickly and with little effort.

The hype is further boosted by digital token intermediaries who profit when people buy, sell, and exchange digital tokens through them. Because the value of any digital token is only as valuable as people deem it to be, speculators and digital token intermediaries have a vested interest in making the digital token bandwagon sound as attractive as possible.
Very true, right now only speculators profit from prices of digital currencies and they use hype to succeed while small people are uneducated and being dragged into the vortex to lose money. Onecoin saves people from that longterm. They even got education that can teach them risks of financial markets including crypto market.
Are digital tokens regulated?

No, digital tokens are not regulated because they are not issued by the Singapore government and are not legal tender. There is no legislative protection for those who lose money from investing in digital tokens.

However, this doesn’t mean that the Government isn’t taking steps to ensure that digital tokens are not used as tools for fraud or other crimes. Under the proposed Payment Services Bill, the Monetary Authority of Singapore will be imposing Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements on digital token intermediaries.
Anyone said AML/CFT??? Well they will be happy to hear from Onecoin after they go public to apply for regulations cause they have those procedures since day 1 and each and evry user out of 3.4+ Mio users are known, not anonymous.
Is it true you can definitely make money from investing in digital tokens?

Money doesn’t grow on trees, and investments are never a sure-win. Digital token investments, in particular, are an extremely high-risk, speculative instrument.

Digital tokens are not backed by any assets or issuer, which means that no one bears any legal responsibility for the money you put into digital tokens. Simply put, you are making an investment with a party that cannot be held accountable. It is as good as taking a gamble.

Very few merchants accept digital tokens as payment, making them far less functional than actual currencies.
Of course money doesn't grow on trees. In order to earn money in literally any project, you need to use "greater fool theory", to accumulate and wait for new investors to buy in so later you (as an old investor) to cash out. This is actually the definition of ponzi.
As we know it, Onecoin is actually trying to circumvent this ponzi speculation trading part and actually be used at merchants.
We also do have 60k+ merchants registered and huge number is comming with new DS and new approval system that is about to be announced.

What are the risks of investing in digital tokens?

There are four serious aspects of digital tokens which make them highly risky: their speculative nature, their lack of transparency, their exposure to hackers and fraud, and their insufficient secondary market liquidity.
This sounds great and true, let's analyze them and see where Onecoin vision stands there.
Speculative Nature

What’s the value of digital tokens actually based on?

Digital tokens are highly speculative instruments whose value is not underpinned by any asset, or backed by any issuer. They are generated by computer code, running on decentralized networks, powered by blockchain technology which remains challenging for most people to thoroughly understand.

As DPM Tharman pointed out, digital tokens investments are “in fact an inherently unstable, high risk game…subject to sharp swings in prices driven by speculation.” Should worst comes to worst, a digital token’s price could plummet to zero, be rendered worthless, and leave investors with none of their capital.

Furthermore, there is little information to help investors gauge their value. Many don’t know enough to fully comprehend digital tokens, much less conduct their own research to verify what they are told.
Speculation and manipulation are here because all exchanges are private, most are unregulated and unlicensed so manipulation is taking place. This all makes damage to small uneducated investors. As we know, Onecoin will be traded on a licensed exchange, and vision explicititelly goes against speculation and manipulation. They bash Onecoin for needing trust in the central party yet they don't realize that all cryptos need even more trust on sea of private central exchanges that flee to regulation paradises so they can maintain manipulation (see Binance as exaple).
Lack of transparency

Can I put my trust in digital token transactions?

Digital tokens are mainly traded on opaque markets, with zero regulatory protection for investors. Digital token transactions are generally anonymous, which make them easily misused for unlawful activities. If a digital token intermediary has been found using digital tokens illegally, their operations can be shut down by law enforcement agencies. When that happens, investors who have transacted with such an intermediary could lose all their money.

Can I make digital token transactions with peace of mind?

When dealing with digital token intermediaries, you Even if digital token platforms don’t collapse, they might still be taken down by malicious actors. Digital token intermediaries may not be sufficiently robust against hackers. For example, after South Korean cryptocurrency exchange Youbit was hacked for a second time, it had to file for bankruptcy in December 2017.
Here we see them explaining to people that most of the transactions are made on exchanges that are highly risky of being collapsed or taken down by hackers (we saw many of those cases before). Most are unregulated exchanges. Onecoin is in Bulgaria, EU country, they even welcomed Germany investigators to come and see that they are doing. You did not see them move to regulation heaven after investigation do you...
Exposure to hackers and fraud, insufficient secondary market liquidity

What else could jeopardize my digital token investment?

Your digital tokens are stored in a digital wallet. Similar to digital token intermediaries, the digital wallet could be hacked. You could lose all your digital tokens as a result.

On top of that, fraud has already occurred with companies that claim to offer digital token-related products and services. Initial coin offerings disguised as Ponzi schemes are not uncommon. Platforms like OneCoin and BitConnect have been shut down for their pyramid schemes, with BitConnect’s price crashing from $452 to $9.

Other fraud cases see pump-and-dump maneuvers, where the price of a digital token is artificially inflated by insiders through false and misleading exaggerations. When the price reaches a feverish peak, these insiders then cash out en masse, all at once, leading to a price collapse.

Finally, there is also the risk that you may not be able to exit your digital token investment easily. There may not be enough active buyers and sellers in the secondary market for digital tokens. You might never get the chance to cash out and liquidate your investment.
Ok here we have this common people security issue that most governments are concerned about cryptos. If someone hacks you, you are toast.
But here they also mention schemes that might collapse so you would lose all your value and they mention Onecoin and Bitconnect in the same sentence who was shut down?
I don't see anything with Onecoin shutdown by anyone? Yes some scammers were shut down in some countries but we see that kind of scammers also arrested around the world for Bitcoin - here is an example: South Korea Dismantles $24 Million Bitcoin Pyramid Scheme.
IMO, this is a simple mistake or miseducation from a guy that wrote this article. Onecoin is not shut down, nor it collapsed and it definitely does not have any profit or interest guaranteeing part as bitconnect. And also, Onecoin can helo hacked users get coins back, this is just one of the crypto issued that onecoin actually circumvents.
However, onecoin is a bold vision and not proven yet so it DOES pose very high risk, that is true.


CONCLUSION:
As we can see, this article is to warn people about flaws and lack of education and regulation to all crypto market. Onecoin is sadly put in the same sentence with Bitconnect but even birds without a brain can see that it does not fit there. Only haters and yellow bloggers can use this as a click bate. It is good to see haters use this as anti Onecoin argument, it just shows their true face and agenda.
Also, when we read that paragraph, we see them saying that most ICOs are ponzi schemes, indeed they are cause most of them are luring investors with promise of token value increase. But even bitcoin is hyped to go to the moon so it is kinda the whole crypto market. Where Onecoin is mentioned here is the pyramid part but everyone knows MLM is not so welcome with Asia regulators and it is the thin line between pyramid and legit MLM and some Onelife IMAs sure did cross that line many times before, but even company is trying to fight and prevent that.

Here is the infographics they made for the article.


Image

dtan
Posts: 5
Joined: Sun Sep 03, 2017 5:41 am

Re: Singapore classifies Onecoin as Ponzi?

Post by dtan » Tue May 29, 2018 5:25 pm

If OL / OC continue to keep silent and believe on what they believe, it may ended up with more and more peoples start to believe it's a "banana" even though it's not....... If you don't know what I'm talking about, just view this video clip > https://youtu.be/-7ht3owHqKg

Igorkrnic
Site Admin
Posts: 1457
Joined: Wed Jun 14, 2017 7:47 pm

Re: Singapore classifies Onecoin as Ponzi?

Post by Igorkrnic » Tue May 29, 2018 6:06 pm

I get you, that's why I made this forum, but look, if I will see an apple with my eyes, and start to believe it is a banana just because many people say so, then I am not really suited for any big thing. I am a zombie.
So, if people will see what is going on, but will soak the online crap, then I suppose they are not suited to participate at this early stage.

But, I do wish company would have more energy and resources dedicated to PR

dtan
Posts: 5
Joined: Sun Sep 03, 2017 5:41 am

Re: Singapore classifies Onecoin as Ponzi?

Post by dtan » Tue May 29, 2018 6:43 pm

I presume 90% of OC investors couldn't see any apple. In fact, they were told by their upline that they'll be getting an apple at the end of the day.....perhaps Oct 08, 2018. Over the time with unstoppable negative news and/ or twisted fact from haters/ competitors, those 90% of investors slowly believe it's a banana.

My msg here is that during this early stage or so called ICO period "the company" needs to look after the 90% of banana minded investors over the 10% apple minded investors in order to be able to step on public stage.

Igorkrnic
Site Admin
Posts: 1457
Joined: Wed Jun 14, 2017 7:47 pm

Re: Singapore classifies Onecoin as Ponzi?

Post by Igorkrnic » Wed May 30, 2018 6:22 am

IMO company cannot look after all users. They are not really labeled as investors cause you actually buy education, not coins. Onecoin is not and will never be trading asset so I don't see it ever labeled as an investment. Although we can say it is just because people call themselves investors.
Anyway, the company cannot look after all banana minds in the world, we, users, the community can and should actually do it. That is what holds any cryptocurrency together. That is why I made this forum so anyone can write about vague articles out there. Sadly, I am the only one starting topics here...

OneCoinTruth
Posts: 111
Joined: Sun Apr 08, 2018 1:17 am

Re: Singapore classifies Onecoin as Ponzi?

Post by OneCoinTruth » Wed May 30, 2018 11:52 am

Huge majority of members are expecting OneCoin to become also a trading asset on October though. A lot of the marketing has emphasized the potential growth of the coin price. Only during the last year the focus of the marketing has shifted more towards DealShaker.

Igorkrnic
Site Admin
Posts: 1457
Joined: Wed Jun 14, 2017 7:47 pm

Re: Singapore classifies Onecoin as Ponzi?

Post by Igorkrnic » Wed May 30, 2018 2:29 pm

Yes because crypto market is a bubble if coins are only a trading asset, that kills usability. To solve that and reiterate original Bitcoin idea is to make the system so usability also influences coin value, not just trading. And Onecoin will indeed be tradable of course. But focus and stress are to educate people not to make the same mistake other cryptos do, let's us users focus on finding merchants and spending coins there and let the merchants trade them for fiat.

Post Reply

Who is online

Users browsing this forum: No registered users and 3 guests