Ethereum dev: “OneCoin is a pure scam”
Ethereum is ‘a public blockchain-based distributed computing platform, featuring smart contract functionality‘ (Wikipedia).
In a nutshell, third-parties can use the Ethereum platform to create applications that use blockchain technology and its Ether cryptocurrency.
Ethereum is currently the second biggest cryptocurrency in the world, with a market cap of $951 million and $11.53 value.
Naturally you’d expect developers behind the Ethereum to know a thing or two about cryptocurrency.
According to one Ethereum developer, “OneCoin is a pure scam”.
Bob Summerwill made the remark in a recent Reddit thread, in which it was reported OneCoin spam links has been left on an official Ethereum website blog entry.
If somebody has access to the blog, I think it would be a really good thing to remove those comments to avoid funneling any visitors to their site and so their google page rank isn’t being increased. Thank you!
Summerwill, in his capacity as an Ethereum developer, replied;
I agree. OneCoin is pure scam, taking advantage of people who know no better.
Summerwill himself wasn’t able to removed the spam but another developer removed the offending content shortly thereafter.
Seeking clarification from Summerwill regarding his claim, BehindMLM reached out via email for further comment.
Summerwill, all too happy to be quoted as a cryptocurrency authority, provided the following statement:
There are almost *too many* red-flags with OneCoin, but let me just pick two key points:
1. Nobody within the cryptocurrency community recognizes OneCoin as a cryptocurrency.
Coinmarketcap lists nearly 700 cryptocurrencies, down to the most worthless of projects. Where is OneCoin?
The story is the same on every single cryptocurrency website and exchange. OneCoin is nowhere to see seen, except in their own marketing materials.
The only references you will find online are articles warning against OneCoin as a scam.
2. Crypto-currencies are trustless and decentralized – that is their whole purpose and essence.
They rely on decentralization (anybody can run a bitcoin node) and on encryption and consensus algorithms like proof-of-work to make them trustless (you don’t need to trust any individual, just to trust math).
They are open-source and documented and based on science. White papers are published explaining how they work, and these are mercilessly critiqued.
The state of the art in blockchain technology progresses like good science – in the open and based on facts.
OneCoin is the polar opposite to real cryptocurrencies. It is anti-science, with no public information, no transparency and nothing more than “trust me” from individuals who obviously have a lot to hide.
They run everything. They control everything. You can only buy and sell through their website. It is anti-cryptocurrency.
This centralization is the key thing which bitcoin and other cryptocurrencies seek to remove in comparison to fiat currencies.
Bitcoin can be bought and sold in hundreds of different ways. There are thousands of merchants who accept bitcoin. None of this is true for OneCoin.
“Centralized cryptocurrencies” make no sense whatsoever. Everything which comes out of their mouths is laughable to the cryptocurrency community.
They are selling snake-oil. Do honest business people stomp around on stage with loud music and fireworks? Do honest people hide behind unclear business structures?
The sad thing to me is that this kind of scam is succeeding in extracting vast sums of money from the pockets of those who can least afford it.
They are taking advantage of people who are not technically savvy enough to realize that “the OneCoin sell” makes no sense whatsoever.
No doubt most of the “buyers” have heard of bitcoin and heard the term cryptocurrency, but know little more than that. OneCoin continually conflate themselves with bitcoin and cryptocurrency as a whole – but it is a complete lie.
As OneCoin continues to try to insert itself into the cryptocurrency community, we’re seeing an increasing number of members of it push back.
For their part, OneCoin management are well aware OneCoin’s Ponzi points business model is at odds with the wider cryptocurrency community.
At OneCoin’s “CoinRush” event held in June, Founder and CEO Ruja Ignatova (right) told assembled affiliates:
You know, I have been accused by the so-called community of cryptocurrency, ‘she is violating the philosophy of cryptocurrency’.
(It) sounds very spectacular, I am violating the philosophy.
To everybody who tells me that I violate the philosophy of cryptocurrency… guys, we are (a) bigger community. We decide what the philosophy of cryptocurrency is.
We will be the biggest out there and we will write history. And the cryptocurrency community will have to rewrite philosophy.
Whether that indeed happens remains to be seen.