There has been a lot of talk about various Ponzi schemes active in the world of Bitcoin and how some of these projects seem to target novice users specifically. Recruiting new members by hosting a fancy seminar or meeting is a great way to keep up the illusion of legitimacy, and seems to be what OneCoin has been doing for quite some time now. As most people are well aware of by now, this program is nothing more than a scam waiting to collapse at any moment.

Also read: Wirex Launches Buy Bitcoin Service with PayPal

OneCoin Seminars Keep Luring In People

TheMerkle_Ponzi Scheme OneCoin

For some of the more prominent scams and Ponzi schemes in the Bitcoin game, establishing an online presence alone is no longer sufficient. As the customer base grows, more money has to keep flowing into the scheme to keep early investors happy, otherwise the pyramid will collapse. What better way to find new members then by using part of company profits to hold seminars and meetings in the hopes of luring in new suckers?

Attending these events may give companies like OneCoin some sense of credibility, as they hold these seminars at fancy locations wearing fancy suits and ties. Novice digital currency users seem to give into the illusion, after all people in suits and ties would never lie to anyone, right?

Investing in digital currency and Bitcoin has a particular appeal to a variety of people. Companies like OneCoin can promise incredible returns on investment in a short timespan for anyone willing to take the plunge, but it is very doubtful anyone will ever see their original investment, let alone any profit. That is, unless these people start referring their friends and family to become a part of the MLM structure.

What is of particular worry is how OneCoin representatives are willing to take various forms of payment from novice users to keep their scheme going. Even cash payments are accepted, as these types of transfers are non-refundable and completely anonymous, unlike Bitcoin payments which are pseudo anonymous or wire transfers which bear no anonymity at all. Although no one should ever deal with companies willing to accept cash payments for a product they probably can’t deliver, some people will still fall for it.

Unfortunately, it can be rather difficult for people to get their funds out of OneCoin once they join the ranks, as getting cash refunded is impossible. Credit card transfers or Paypal transfers can be charged back if done in time, and if enough refund claims are registered, payment processors might freeze OneCoin’s accounts.

Ponzi schemes like OneCoin attract a lot of negative and unwanted attention towards digital currency in general, even though none of these schemes have anything to do with Bitcoin directly, the fact that they refer to Bitcoin as their competitor sheds a negative light on the currency. Granted, most of them claim they invest in and trade with Bitcoin, but the reality is they only collect money from investors to fuel their MLM machine and keep the scam going as long as possible.

Source: Reddit

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