Published on November 19th, 2019 by
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“People who invest greatly in anything, set all their income and their hopes into it. It is pretty challenging for them to go away mainly because they have to accept that all that was a waste, that they’ve been duped, that they’ve been tricked and they tricked other individuals.”
— Jamie Bartlett
- Spot: London
- Day: Monday, 11th Nov
- Task: The Lacking Cryptoqueen
- Job: Host
OneCoin, a venture launched by Ruja Ignatova, promised a economic revolution. By the time Ignatova disappeared, the rip-off was alleged to have obtained over $5bn in financial investment (though some estimates may put it at more than $15bn).
Whilst OneCoin claimed to be managing a personal blockchain certification, in fact, it was a Ponzi scheme in which consumers purchased ‘packages’ and received ‘educational material’. All through the system, they gained OneCoin tokens, and there were incentive schemes to onboard new customers.
After people experienced acquired their OneCoins, the only place they could trade them was with an additional OneCoin user on the scheme’s personal ‘exchange’. When the rip-off started to unravel with the disappearance of Ruja and the arrest of her brother, quite a few struggled to acknowledge it was a rip-off and revenue ongoing to pour in.
The term rip-off is thrown about loosely in crypto, usually from cult-like followers who disagree with an ideology that a different coin possesses or often thanks to a deficiency of know-how. When some initiatives may well be misguided or have questionable use-conditions, not all are ripoffs like OneCoin Bitconnect and PlusToken.
Experienced traders see these jobs and straight away identify the warning signals sadly, this is not always the situation for newcomers. The language made use of in Bitcoin and crypto can be bewildering, and when common persons hear or study about a job that is ‘The New Bitcoin’ with guarantees the project is like purchasing Bitcoin at $1, $10 or $100, these ripoffs can speedily suck in naive buyers.
So, ought to Bitcoiners be carrying out additional to spread awareness of these frauds as they crop up and what can Bitcoiners learn about guiding new investors from cons these kinds of as this?
In this job interview, I communicate to Jamie Bartlett, host of the BBC’s podcast The Lacking Cryptoqueen, an investigation into OneCoin and the disappearance of its founder Ruja Ignatova. We explore cons, Ponzi’s, pyramids, cults and multi-level marketing.
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