Does Ruja Ignatova know anything about cryptocurrency?
Upon learning of the arrest of Chinese investors, yesterday Ted Nuyten personally “reached out” to CEO Ruja Ignatova.
This was part of Nuyten’s duty as unofficial spokesperson for OneCoin to the MLM industry, suspected to be the result of an undisclosed amount of money changing hands.
In “a statement” published on Nuyten’s BusinessForHome blog yesterday, Ignatova referred to the arrest of Chinese OneCoin investors and seizure of over $30 million USD in assets as “a challenge”.
Cryptic as ever, Ignatova went on to claim OneCoin was ‘pushing hard and already working on several licenses to enhance the business in China.‘
That those licenses will never materialize is a given, in much the same manner as OneCoin left a return to the US lingering upon their abrupt departure last year. Ditto promises of opening up their own OneCoin banks.
In an attempt to not address the fact that OneCoin is under investigation by Chinese authorities, with OneCoin management holding events on the Chinese mainland likely to lead to more arrests, Ignatova claimed the cancelled Harbin event had been replaced by a May 9th event in Macau.
The request to place the event in Macau instead of Harbin was requested by the Chinese members themselves.
Fearing arrest and seizure of their assets, one can understand why Chinese investors didn’t want to attend a OneCoin event on the mainland.
For those unfamiliar with Macau, it’s a “Special Administrative Region” of China that functions as an autonomous territory.
China is responsible for military defense and foreign affairs while Macau maintains its own legal system, the public security force, monetary system, customs policy, and immigration policy. (Wikipedia)
That’s not to say Chinese mainland and Macanese authorities don’t work together. But with the Chinese investigation ongoing and little to no promotion of OneCoin in Macau itself, realistically the chance of Macanese authorities taking action on May 9th is slim to none.
A factor both Chinese OneCoin investors and management are acutely aware of.
In any event, whilst Ignatova’s response to the jailing of Chinese investors equates to legal dodging and weaving, what caught my eye was OneCoin’s bitcoin announcement.
In a press-release issued on the OneCoin website yesterday, the company announced it will be accepting ‘bitcoins from May 3rd, 2016’.
Following a substantial increase in the demand and interest, as well as Members’ requests, as of May 3rd, 2016, OneCoin will accept bitcoins as payment for its products.
This is further reflective of the difference between a legitimate cryptocurrency with market value, versus OneCoin’s worthless Ponzi points.
OneCoin will accept bitcoin because it has an actual value. OneCoin themselves won’t even accept OneCoin – not for their investment packages or even tickets to their events.
And that’s despite the pie-in-the-sky value investors are told their OneCoin’s are worth in their backoffice (an ever-increasing value arbitrarily assigned by the company itself).
What caught my eye in the press-release was this particular statement about the value of OneCoin:
The decision was made after careful monitoring of the market trends, which show that more and more people are seeking alternatives to bitcoin, since the currency has shown a rapid decline after crashing in value in 2015.
As its current prices continue to plummet, even the biggest supporters of the bitcoin currency admit it is unlikely to recover to its previous trading value. Disgruntled users are now searching for a substantially more stable solution.
By no means am I a bitcoin expert. I don’t own any bitcoin (never have) and I don’t follow the going-ons of the bitcoin world.
My only exposure to the cryptocurency is when my research and ongoing tracking of MLM cryptocurrency opportunities and bitcoin intersect.
…but even I know the price of bitcoin isn’t plummeting.
Back in April 28th, 2015, bitcoin was valued at $225. Today, one year later, it’s trading at $449.86 (CoinDesk).
That’s a funny looking “rapid decline”.
Now what will or won’t happen in the future regarding the value of bitcoin I have no idea. And that’s not really relevant.
Today OneCoin are presenting themselves as a viable alternative to bitcoin, a cryptocurrency they acknowledge has tangible value by proposing to accept it, based on the purported “stable solution” OneCoin offers.
If we look at the track record of bitcoin’s value, “stable” is probably the least accurate adjective that comes to mind. And that’s not a negative. The value of bitcoin is truly shaped by supply and demand, in an open marketplace where goods and services can be exchanged by anyone.
Alternatively, the value of OneCoin is set by an employee in their office, based on the sole precondition that the new value cannot be less than the current value – irrespective of how supply and demand or any other organic determining factors (such as how much investor money OneCoin has squirreled away in their various shell companies).
The take-away from all of this?
In an effort to further the fiction that OneCoin exists within the legitimate world of cryptocurrency, their narrative has now gone so far off base they’ve literally invented an alternate reality.
That doesn’t exactly strike me as something anyone with even the remotest knowledge of the cryptocurrency sphere would think they could pass off. At least not to anyone outside a circle of investors who are in far too deep to confront their current predicament anytime soon.
But hey, what do I know. It’s not like you need to be a cryptocurrency expert to run a script to generate Ponzi points, assign them an imaginary value and convince millions of people around the world to invest.
Evidently all it takes is loads of makeup, some pretty dresses and a bit of paid advertising here and there.