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- OneCoin crypto project is one of the largest scam projects
- OneCoin leaders have laundered more than $4 billion
- OneCoin has warned the users to beaware of scam projects in the industry
OneCoin shows that cryptocurrency investments are adventures. In the current scenario, there are more than 10k projects to choose from and invest in the crypto market. Such projects can help gain tremendous profits and dramatic losses throughout just 24-hours. It is also worth noting that such projects are sometimes world-changing and sometimes entirely ridiculous. Indeed, the OneCoin Ponzi scheme that posed as a cryptocurrency, launched itself as a self-styled cryptoqueen Ruja Ignatova in 2014.
With flashy messages, the project attracted millions of investors in the crypto market. While large investors believed that they are part of a bigger project, the bigger project turned out to be a bigger scam.
The Crypto market is littered with fraud stories
The crypto market has volatility as a part and parcel of such investments. Notably, the entire space is littered with such stories of scams, fraud, and laundering. When it comes to frauds and scams, OneCoin has been considered as one of the biggest such scams, where the leaders of the project stole over $4 billion from investors globally in the period of more than two to three years.
The project offered garish launches and catchy messaging convincing investors from 175 countries to purchase educational materials and OneCoin tokens. The glamourous Ruja convinced the individuals that they are going to be rich. However, the project called itself a cryptocurrency having blockchain behind its construction.
OneCoin advocate is the missing cryptoqueen
The leaders behind the OneCoin project have used multi-level marketing (MLM) to incentivize the investors. Incentivizing investors, the project asked them to sell itself to friends and family. Notably, the project has no blockchain behind it and was never traded on any crypto assets exchange platform.
Indeed, in 2017 the authorities came forward to give a closer look at OneCoin and deemed it as a scam. Since then Ruja Ignatova went into thin air and has never been found. However, her brother who acted as the Chief Executive Officer of the scam project was arrested.
OneCoin’s event teaches the cryptosphere
No investors will ever pray to fall victim to a scam. Investors will try to avoid projects even if they knew that such things might happen. However, the $4 billion worth scam teaches us to research before we invest in any project.
Before investing in crypto or stocks it is significant to check out the leadership. Indeed, it is hard to know whether the internet has shown back in 2014 that Ruja was already charged with fraud pending against her in Germany. Following this fact, the financial regulators began to question the legitimacy of OneCoin.
On the other hand, investors should beware of crypto that dismisses critics as haters and encourages investors to join small communities led by the project’s sales individuals. Ultimately, the salespeople indoctrinate the individuals to believe only the good regarding the project. And any critical news or updates are removed by the team itself. Indeed, we should stay careful after being a part of an investment firm that uses such tactics.
