Bitcoin imitator: OneCoin a very risky virtual currency

by Rudolf Faix 4. October 2016 03:27

OneCoin LogoThe virtual currency of Bitcoin has many followers. New Providers want to benefit from it and imitate the original. The German consumer magazine FINANZtest warns strongly from the significant risks.

Other providers rely on the enthusiasm for purely digital currencies, the pioneer of Bitcoin has triggered. Whether that is actually profitable for the customer, but is questionable. Newcomers like SwissCoin and OneCoin differ greatly from Bitcoin. In both there are central bodies that verify the system. The currencies have a very limited use. The publishers rely on multi-level compensation plans to attract customers to bring their products further among the people.

If someone is thinking logically then he will get it, that nobody can buy money and nobody can take out more money from a system than the amount of money is inside. Each little child knows already that the market price depends on supply and demand. Which value can have a digital currency which gets traded only by one issuer?

OneCoin does not get accepted by any other money exchanging system found at the world, you get free OneCoins already for signing up, you get additional OneCoins for bringing other victims into the system and you have no chance to use these OneCoins in any shop. Which value can have OneCoins? As soon as the company behind is running into problems or gets shut down from the government you lose all your real money. Each pyramid system or Ponzi scheme breaks down as soon as not enough new victims entering into the system can get found.

OneCoin is a "billion-euro company" according to company founder Ruja Ignatova from Bulgaria. It occurs under the brand names OneCoin, OneLife network and OneAcademy. The website from OneCoin praise their cryptocurrency as the second largest of the world. In two years, Ignatova wants to be the number one and have ten million customers. They buy training packages for prices from 110 euros upwards.

Wow, OneCoin surpasses itself. You need to buy a training package for using it! Does it not show already the scam? You need to get a training for using the crypto currency. Maybe you'll need a training too for using your hard earned real money?

OneCoin describes itself as "centralized" crypto currency. It stands according to the company deliberately "currently not for everyone to act" open, because it is still new. OneCoins can only be traded on an internal network platform. Other trading platforms for crypto currencies are not trading OneCoin. Whether and how OneCoins get mined, bought and sold, depends largely on the management. In June, the company reported about waiting times of two to three months until customers received their coins.

At the same time, Ignatova announced to extend the maximum possible amount of OneCoins from October from 2.1 billion to 120 billion units. If OneCoin has overestimated the demand it can lead to a price crash.

Critics such as the Latvian financial and capital market Commission interfere on the multi-tiered, pyramid-style remuneration system: the company rewarded customers, if they manage to persuade more customers to buying its products, and this cause further purchases.

"The business model of OneCoin is perfectly legal and does not qualify as a pyramid scheme," OneCoin stresses to FINANZtest. The OneLife Network offer genuine products, such as mobile computing device "OneTablet" and real services in the form of training packages with finance. The business model is based "on the basis of a traditional direct sales concept". Let members possible, "to earn their income through referrals and sales training toolkits on cryptocurrency and financial management to non-members." Commission and bonus would immediately depending on the success paid - just as with well-known companies with direct sales offering goods such as kitchen appliance Thermomix, the personal care products of Amway or dietary supplements from Herbalife.

Let us take a look at their product - the "OneTablet". The specifications are getting found at their site:

HD RESOLUTION: 800*480/1024 x 600/1024*768

GOOGLE ANDROID SOFTWARE
Android OS MaPan firmware

COMPONENTS: MTK Quad core CPU

WIRELESS 802.11B/G/N: 802.11b/g/n WI-FI wireless connection

STORAGE: RAM 1GB / Build in 16GB / Expandable up to 64GB

BATTERY POWER: 2500 – 8000mAH / 5V 2A lipo battery

INPUTS TOUCHSCREEN (CAPACITIVE): Multi – point capacitive touch screen

DUAL CAMERAS: Front 0.3MP + back 1.3 million pixels

Front 1.3MP + back 2.0 million pixels

Price: € 550 + SHIPPING + 550 BV (Bonus Volume) GENERATED!

Funny are the specs from the battery power already. It seems like Ignatova is thinking that battery power is a chewing gum. An built-in battery has a fixed capacity and cannot get provided as a value between 2500 - 8000 mAH!

The value of BV (Bonus Volume) is € 1 = 1 BV as it can get shown in their offer:

STARTER PACKAGE
110 €

For those who have no previous financial experience. Includes Level 1 of OneAcademy’s e-learning program. Students will learn basic financial literacy and be introduced to financial products and trading. After completing this module, we issue certification for access to OneExchange. The starter membership gives 1000 promotional tokens which can be put into cryptocurrency mining and generates 110 BV points for network bonuses.

Screenshot from the OneCoin's starter package

For these ones, which are thinking that you'll get something additional value with the starter package and for this reason you are not able to convert € 1 to 1 BV, I'll show you in the next screenshot that this additional offers have no real value, because if you buy the most expensive package for € 7,500 you'll get also 7,500 BV.

Screenshot from OneCoin's Tycoon Plus Trader Package

An tablet with similar specifications can get found from the Maixin Group at Alibaba (Tablet offer from Maixin Group at Alibaba.pdf (2.37 mb)) for the price between US$ 55 and US$ 60 depending on the count of pieces you are ordering.

With other words you'll pay for a product, which has the value of US$ 60 the exorbitant price of € 1,100!!! Let us include the exchange rate between US$ and Euro from today, where € 1 = US$ 1.12284 or US$ 1 = € 0.88993:

Currency you'll get a value you pay for it
US$ 60.00 1,235.12
53.40 1,100.00

The Veto Concept AG from Leipzig is coming from direct sales site too. They presents themselves on the Internet page richcoin.eu as an independent sales partner of OneCoin. The digital currency explained to one of "the hottest financial topics". After the warning from the consumer magazine FINANZtest got published Veto Concept AG stopped publishing their site richcoin.eu. The following amazing content gets shown:

Screenshot from the site richcoin.eu

Translated to English:

Dear visitor,

the website "RichCoin" got discontinued by us. Just use the contact form if you have questions.

Friendly greetings VETO CONCEPT AG

It seems that the "hottest financial product" has been even coming to hot for their business. Think about it what you'll doing if you see a similar content at the site from OneCoin. It happened already at least one time as the system from BigCoin got shut down in the year 2014. Involved in the system from BigCoin has been Ruja Ignatova.

Ruja Ignatova cryptoreal investment trust BigCoin

The website badbitcoin.org, a platform of cryptocurrency fans criticizes multilevel distribution systems. She denounces dubious practices and accumulated negative reports. OneCoin is on their "Badlist", a warning list for not recommended deals.

A digital currency of a central supplier, industrial applied for payment transactions - reminds of electronic money (E money). The currencies were to be classified, the company needs a permit. In the register of approved electronic money institutions of the Federal Agency for financial services supervision (BaFin) are not getting found the companies around OneCoin and SwissCoin.

Would the BaFin classify the currency as e-money, they could order the rescission. Also around classical crypto currencies there subject to authorization activities. In June reported the German magazine "Der Spiegel", the BaFin review OneCoin. The BaFin has not given statement until now. It may be that the digital currencies will facing hot stages for various reasons.

Domain owner of onecoin.eu:
Name: Tsvetelina Lekova
Company: Onecoin Ltd
Address: 12 Tsar Osvoboditel, 1000 Sofia, BG
Phone: +359.24444331
E-Mail: tsvetelina.lekova@ravenr.com

Domain owner of onelife.eu:
Name: Albena Topalova
Company: One Network Services Ltd
Address: PI. P.R. Slaveikov 6A, 1000 Sofia, BG
Phone: +359.24444331
E-Mail: office@onecoin.eu

Domain owner of oneacademy.eu:
Name: Tsvetelina Lekova
Company: One Network Services Ltd
Address: 12 Tsar Osvoboditel Blvd, 0001000 Sofia, Sofia, BG
Phone: +359.885660254
E-Mail: tsvetelina@onecoin.eu

Update Jan. 19, 2017: Links to richcoin.eu removed as the service of the site got discontinued.

 

How you can lose money in Multi Level Marketing by the example of Herbalife

by Rudolf Faix 20. July 2015 10:02

HerbalifeLike others I have calculated that you need to spend at least US$ 370 per month (US$ 4,440 per year) for keeping your membership active at Herbalife. According their own documentation only 1.39% of their members are earning more then they need to spend. Such a system is called "where everybody can succeed"!

At "HERBALIFE Life Changing Products and Business Opportunity" on page 28 we'll find the income disclosure from Herbalife: 

People become Herbalife Members for a number of reasons. A substantial majority (73%) (73%, based on a survey of former U.S. Members by Lieberman Research Worldwide, Inc. (“LRW”) in January 2013, with a margin of error of +/- 3.7%) join us primarily to receive a discounted price on products they and their families enjoy. Others wish to earn part-time money, wanting to give direct sales a try. They are encouraged by Herbalife’s minimal startup cost (at their option, a Mini Herbalife Member Pack [Mini HMP] at (USD) 59.50, or full HMP at (USD) 92.25 (Prices quoted are for the U.S. as of December 2014, and are subject to change. For current prices, see opportunity.herbalife.com), plus applicable sales tax, shipping and handling) and money-back guarantee (If requested within 90 days for the return of the HMP and one year for the return of resalable inventory, upon leaving the business). There is no need to purchase large amounts of inventory or to purchase other materials. In fact, Herbalife’s corporate policy discourages the purchase of sales aids, especially in the first few months of a Membership.

According to the above arguments is my opinion: You only need the right arguments for whitewashing a negative result and don’t trust any statistics you did not fake by yourself.  The start-up costs are small compared with staying active in the system. True to the motto "Hope dies last" many will pay the contribution and hope that at some point they will make some profit with the system from Herbalife. If someone has the possibility to earn more he will not say no to this possibility.

Let us continue at their income disclaimer:

PROFIT ON YOUR OWN SALES: One element of the income a Member can earn is the profit, after expenses, from the resale of Herbalife® products. Members decide for themselves the way they do the business, the number of days and hours they work, the expenses they incur and the prices they charge.

MULTILEVEL COMPENSATION: Some Members (20.1%) sponsor others to become Herbalife Members. In that way, they may seek to build and maintain their own downline sales organizations. They are not paid anything for sponsoring new Members. They are paid solely based on product sales to their downline Members for their own compensation or to sell to others. This multilevel compensation opportunity is detailed in Herbalife’s Sales & Marketing Plan, which is available to all Members online at MyHerbalife.com.
For the 13% of Herbalife Members who are Sales Leaders (Sales Leaders are Members who achieved the level of Supervisor or higher. See details on Herbalife’s Sales & Marketing Plan at MyHerbalife.com. 58.2% of Sales Leaders as of February 1, 2014, requalified by January 31, 2015 [including 41.2% of first time Sales Leaders]) with a downline, the average compensation received from the Company in 2014 was (USD) 5,456. These amounts are before expenses incurred in the operation or promotion of their business.

In the chart below, we summarize the economic benefits available to Herbalife Members in 2014. For most people (89%), the economic benefits resulted exclusively from a discounted price on products they purchased for personal and family use or for resale to others, neither of which took the form of a payment from the Company.

Herbalife Member Levels

The majority of those Members who earned in excess of (USD) 100,000 from Herbalife in 2014 had reached the level of Herbalife’s President’s Team. During 2014, 31 U.S. Members achieved the level of President’s Team. They averaged seven years as an Herbalife Member before reaching President’s Team, with the longest duration being 18 years and the shortest being less than three years.

If we take from the above chart the data then we see that from 554,353 members are only 7,695 earning more in the system from Herbalife than they need to spend (US$ 4,440 per year) - that are only 1,39% of all members! The bitter truth is that all others are only paying into the system.

The sentence "58.2% of Sales Leaders as of February 1, 2014, requalified by January 31, 2015 including 41.2% of first time Sales Leaders" shows additional how difficult it is to keep such a system upright and running. 83,6% of the experienced Sales Leaders before the year 2013 and 58.8% of the first time leader of the year 2013 failed to keep their level or reach their level again during the year 2014. That shows us the quality and or pricing problems of their products that they have too less returning customers.

 

Tags: , , , ,

Affiliates & MLM Marketing

Can You Make Money with Network Marketing?

by Rudolf Faix 19. July 2015 12:40

Pyramid SystemIt is conceivable to profit with MLM, in any case we trust it is profoundly unlikely. In his free eBook "Multi-Level Marketing Unmasked", Jon Taylor found that 99.7% of individuals will lose cash in system advertising. So for each 1,000 individuals who join a system showcasing group, 3 will win more cash than they spend. On the off chance to have 5 effective individuals in your first down line you’ll need to select 1,665 new individuals, so that 5 of them will be successful.

This may be a framework that "anybody can do", but at the same time it's a framework in which, just 1 in 333 individuals are effective. To attempt and comprehend why it is so troublesome for system advertisers to turn a benefit, we can take a closer look into the compensation plan of Amway, USANA, Herbalife and Nu Skin. Not surprisingly the framework for winning cash with every, are harmoniously one of a kind and comparable.

Each MLM has their own adaptation of paying commission and they are all offer comparative qualities. Shockingly we accept that they are organized in a manner that makes it exceptionally troublesome for anybody to turn a benefit in system showcasing. Case in point:

  • You need to "qualify" to procure any commission - You are honored "focuses" when you purchase items. This makes what we see as "manufactured interest" for the items. System promoting individuals are requesting item with a specific end goal to stay "dynamic". They arrange in overabundance of what they would by and by utilization or what they can on offer at a retail edge, which makes them stock heap the items.

  • The vast majority of the cash spent is by individuals - Network showcasing organizations recognize that next to no of their deals are because of retail request. The majority of the item being requested is by individuals for individual utilization (or to fulfill volume portions). Deals are not determined by business sector strengths; they are driven by individuals purchasing for volume targets. On the off chance that almost no cash is originating from outside the system, then the main route for individuals to benefit is to the detriment of individuals in their own particular down line.

  • It is a zero sum game - without natural deals, your up-line can just profit, on the off chance that you burn through cash. The stories you find out about the battling single guardian who is presently a mogul may be valid. Be that as it may they forget a critical point of interest, which is: Every one of those million dollars originated from different individuals from the system who are underneath them in the MLM progression (which is not pyramid paying little mind to how nearly it looks like one). Cash made by one individual from a MLM group, has been lost by another.

  • A System Prone to Negative Incentives - As we already noticed, the main way the vast majority makes any salary in system showcasing, is from marking new individuals beneath them in the framework. When you are in the framework, you're up line will get commission on any cash you spend. It is to their greatest advantage to instruct you to "you are ideal for the group" and to "continue spending that month to month amount". The more you spend, the more they win. They may accept that you can succeed in multi-level advertising, yet in all actuality, they require your cash coming into the framework with the end goal themselves should to succeed.

  • Multi-Level Marketing does not evacuate the center man - Direct advertising organizations will let you know that their organizations are "offering straightforwardly to you". Best case scenario, this is a misguided judgment, even under the least favorable conditions it's a deliberate distortion. You can arrange items specifically from the organization, yet they will pay a commission to the individual who enrolled you and a few others above you in the chain. They will let you know that you can possibly "acquire commission" from your down line. In all actuality you are getting to be another center layer in the conveyance chain between the supplier and your down line.

 

Tags: , , , , , , , ,

Affiliates & MLM Marketing

Follow me

AboutMe

I'm since more then 35 years in the computer business (programming and technical support) and using the Internet since it has started. Since 2002 I'm programming solutions for Asterisk and since 2004 I'm in the call center industry.

Disclaimer

All data and information provided on this site is for informational purposes only. I make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. By browsing or using content from this site you accept the full legal disclaimer of this website.



hit counters