Concept Behind OneCoin

Concept

According to Onecoin, its main business is selling educational material for trading. Members are able to buy educational packages ranging from 100 euros to 118,000 euros. Each package includes "tokens" which can be assigned to "mine" Onecoins. Onecoin is said to be mined by servers at two sites in Bulgaria and one site in Hong Kong. Each level (except six and seven), or package, gives new educational material, which are copied from several sources. The company and its recruiters claims that Onecoin doesn't sell cryptocurrency but only educational material. However, in a typical Onecoin recruiting meeting most of the time recruiters talk about investing in cryptocurrency and the educational material is barely even mentioned.

The only way to exchange onecoins to any other currency is Onecoin Exchange, an internal market place for members who have invested more than just a starter package. Currently, onecoins can only be exchanged for euros, which are placed in a virtual wallet from which they can be requested for wire transfer. The market place has daily selling limits based on which packages the seller has invested in, which greatly limits the amount of onecoins which can be exchanged. On 1 March 2016, without a prior warning, Onecoin issued an internal notice that the market would be closed for two weeks for maintenance. The notice explained that the maintenance was necessary due to high amount of miners and for "better integration with blockchain". On 15 March 2016, after the two week maintenance, the market opened again but no visible changes had been done; most of the transactions expire as before and daily limits stayed on.