What is OneCoin?
OneCoin was promoting itself as a new cryptocurrency that could compete with Bitcoin. The project was founded in 2014 by Roya Ignatova, a Bulgarian businesswoman, and aimed to attract investors with promises of huge returns on their investments. However, OneCoin was not actually a real cryptocurrency, but rather a massive scam. It claimed to offer investors a unique opportunity to join the crypto market, but it was simply a “pyramid scheme” to extort money.
How did the scam work?
OneCoin was based on a Ponzi scheme, where investors would buy fake cryptocurrency “training packages” for huge sums of money. Instead of getting real coins, they would get non-transferable “educational units.” The company also promised huge returns of up to 1000%, which attracted many people to invest. However, these profits were fictitious and not based on any real business activity.
OneCoin Scandal:
In 2017, investigations into OneCoin began after doubts were raised about the project’s credibility. It turned out that the currency was not real and was a massive scam. Several people involved were arrested, but Roya Ignatova suddenly disappeared, and her whereabouts are unknown to this day. Investors lost over $4.4 billion, making this scandal one of the biggest scams in the cryptocurrency world.
Scandal effect:
The OneCoin scandal had a significant impact on the market, increasing suspicions about many shady crypto projects. It also prompted many countries to tighten regulations and laws related to digital currencies. Moreover, it highlighted the need for transparency in the crypto industry, and the importance of constantly verifying the credibility of projects before investing in them.
