One Coin, Much Scam: Swedish Bitcoin Foundation Issues Warning Against OneCoin

By September 14, 2016Bitcoin Business

The Swedish Bitcoin Foundation released an official statement regarding OneCoin, a cryptocurrency Ponzi scheme that has been around since early 2015. Mats Henricson, the chairman of the Swedish Bitcoin Foundation, wrote in an official statement that the organization believes OneCoin is a fraud and that users who are relatively new to digital currencies and the cryptocurrency industry must be cautious when approaching OneCoin-related programs. Henricson said : “OneCoin has grown immensely large and billions have been put into this phenomenon. But OneCoin is not like the other crypto currencies such as Bitcoin.” He further stated that the technical aspects of the “cryptocurrency” is vulnerable and broken, while the economical side of OneCoin proves its fraudulent pyramid scheme-like structure. He added : “We therefore conclude that OneCoin is a fraud and therefore call for caution.” The story of one successful scam OneCoin gained serious momentum in late 2015 , as users began to invest millions of dollars into the digital currency expecting some sort of guaranteed profits which they were promised. Users were particularly allured by the OneСoin development team, who falsely stated that the cryptocurrency was being utilized by millions of people worldwide. The scam-like cryptocurrency became increasingly popular amongst beginner cryptocurrency enthusiasts and investors who lacked significant knowledge in cryptography in general and the fundamentals of digital currencies. To begin with, OneCoin is not an open-source software. Despite the OneCoin development team’s claims, none of OneCoin’s codes were released via platforms like Github, most likely due the fear and concerns of the development team that other experts in the field might expose the broken cryptography behind the cryptocurrency. More importantly, OneCoin is not based on a public ledger. Its transactions can’t be tracked elsewhere and it doesn’t represent decentralization as other cryptocurrencies do, like Bitcoin & Monero . […]

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