Bullshit and Lies

This page contains several topics with bullshit and lies dispersed by representatives of the OneCoin and OneLife companies. There really is too much material, so we selected a Top 5.

Number 1 Lie: All owners of OneCoins will become shareholder of a FinTech, cryptocurrency and e-commerce company, that will be listed on a Stock Exchange. OneCoin will go public in the second quarter of 2018 and then everybody will be able to buy and sell coins.
 
Number 2 Bullshit: OneCoin Market capitalization – 260 billion EUR by the end of June 2017, increasing by almost 2 BILLION EUR each day by the end of 2018.
 
Number 3 Bullshit: Most ridiculous Transactions in Block #22431: same OneCoins are spent 70 times.
 
Number 4 Bullshit: KYC documents recorded in the Blockchain prevent prevent “money laundry” and “bad things”.
 
Number 5 Lie: Brand new BMW X6 xDrive35i can be bought on Dealshaker for 12,307.69 ONE (i.e. 100% OneCoin, no euros).
 

Number 1 Lie: All owners of OneCoins will become shareholder of a FinTech, cryptocurrency and e-commerce company, that will be listed on a Stock Exchange – OneCoin will go public in the second quarter of 2018 and then everybody will be able to buy and sell coins

Ruja Ignatova’s second largest lie (after her false claim that OneCoin is a real cryptocurrency with a genuine Blockchain of course) was announced in a video, broadcasted on 15 January 2017 (YouTube link). In the video message she asserts the following:

  • OneCoin wants to be the first company doing FinTech, cryptocurrency and e-commerce that becomes listed on the stock exchange.
  • OneCoin will go public in the second quarter of 2018 and then everybody will be able to buy and sell coins.
  • The only way to be part of this IPO (Initial Public Offering) is to hold OneCoins.
  • OneCoin owners will be able to exchange OneCoins into so-called OFCs. An OFC is a future certificate that entitles the owner to receive shares in the company OneCoin.

The news was confirmed in a OneLife Newsletter (link) and this news item in the onelife.eu back-office:
 

The first evidence of Ruja’s lies became clear a few weeks later, when the onecoinofc.com website was launched. Instead of the “certificate that entitles you to receive shares in the company OneCoin” that Ruja promised, the Terms and Conditions page on onecoinofc.com/terms-and-conditions (not accessible anymore) contained incomprehensible clauses like this:

  • Furthermore, it is expressly pointed out that the above options do not grant any ownership, voting, or similar rights.
  • 2.1 OFC (an Option for Future Certificate) – a possibility provided free of charge for the members of OneLife Network and users of OneCoin, contingent ONLY upon the Company meeting a number of objectives and in accordance with an irrevocable instruction from the User to do so, as a recognition, allowing them in future and according to the hereto stated terms and conditions, to benefit from it.
  • 2.2. OFC evaluation – a predetermined (potential/projective) evaluation/value calculated by the time of occurrence of the specific circumstances under which the OFCs are issued and valid to the time of occurrence.

This is nonsense, an endless list of what an OFC is NOT:

The IPO story, in contrary to Ruja’s promise that an OFC is a future certificate that entitles the owner to receive shares in the company OneCoin, OFC owners will have no rights at all (see the third bullet):

  • “As an initial step, we have exclusively invited current OneCoin holders to become part of the public listing and potentially benefit from the future success of the IPO of OneCoin. In addition we are offering Options for Future Certificates (OFC), which aims to calculate projected future participation in the public listing of OneCoin. To clarify, OFCs have no monetary value. OFCs do not grant any ownership, voting or similar rights.”

Note: the alleged “Price/Value” of OneCoin was 12.45 EUR when this campaign was launched. You could exchange OneCoins for OFCs, but according to the Frequently Asked Questions the OFCs are given “for free”. This implies that the value of OneCoin is zero, which is true outside the OneLife network anyway. Inside the network some “Greater Fool” merchants accept OneCoin Ponzi Points in exchange for real products or services.

  • An OFC is an Option for a Future Certificate.
    It is not a financial instrument and has no inherent value – it can be acquired for free in the OneLife Network.


 
Needless to say that this IPO, stock exchange listing and going public never happened. Instead of this, in August 2017 an ICO (Initial Coin Offering) was announced (see OneLife Newsletter – link). This ICO never happened either and was followed by a second ICO in 2018 (see onecoinico.io – link ) to keep the ponzis dangling for more than two more years.
 

Number 2 Bullshit: OneCoin Market Capitalization

Although currently there is no real OneCoin market, i.e. no exchange where you can buy and sell OneCoins, there is a OneCoin “price” which is published in the onelife.eu backoffice. The price is also used on the Dealshaker.com platform, where OneCoin really can have some value (if you can find a reliable merchant aka “Greater Fool”).

Definition: OneCoin Market Capitalization on a certain date = Number of OneCoins in circulation (“mined”) x OneCoin Price.

Screenshot of definition on the OneCoin FAQ Page.
Note: In the meantime the “What is OneCoins market capitalization?” question has been deleted, but an archived version is still visible on http://archive.vn/FcU9M.

Sources:

  1. Number of Blocks in period April 2015 till September 2016: published in Audit Reports of OneCoin Blockchain Simulator Version 1. Number of OneCoins per Block: 10,000.
  2. Number of Blocks in period October 2016 till December 2018: downloaded from the browser screens of OneCoin Blockchain Simulator Version 2. Number of OneCoins per Block: 50,000.
  3. OneCoin Price: as published by OneCoin/OneLife company, also presented in onelife.eu backoffice Dashboard.

The graph shows the “Market Capitalization” in EUR ultimo each month. As from October 2016 this value goes through the roof. At the current (December 2018) price of 26,96 EUR and more than 57 billion “mined” OneCoins, the “Market Capitalization” is 1,552,815,341 EUR, in other words 1.55 TRILLION EUR or 1.77 TRILLION USD (which is more than the total number of USD in circulation).
With 50,000 new OneCoins “mined” each minute, the total “value” increases by almost 2 Billion EUR each day (60 Blocks per hour, 50,000 OneCoins “mined” per Block, “Price/Value” 26.95 EUR: 60 x 24 x 50,000 x 26,95 EUR = 1,940,400,000 EUR). It goes without saying that the value is completely fake, as everything in OneCoin.

Screenshot of spreadsheet with calculations of “Market Capitalization” ultimo month

This is a slide of the infamous “OneCoin, the Bitcoin Killer” presentation during the CoinRush Event on 11 June 2016 in London. A relatively modest 4,4 billion EUR (that was already nonsense) compared to monstrous 1.55 trillion EUR by the end of 2018.


 

Number 3 Bullshit: Most ridiculous Transactions in Block #22431: OneCoins are transferred 70 times within one Block

We checked a large number of Blocks and Transactions to determine if we could find inconsistencies, like “double spends” i.e. unspent Transaction OUTPUTs which are used as INPUTs in later Transactions more than once, which would be invalid/illegal.
We found no less than 3,734 Block where the Output Total Amount in OneCoins was greater than the total number of OneCoins created (“mined”) at the moment the Block was created.
The Block with the largest Output Total is Block #22431 (login required) with 129,228,309,954.52314758 ONE, so more than 129 billion ONE.

Because the overall total number of OneCoins that – according to Ruja Ignatova – can be created is 120 billion, at first sight this seems to be a Block with illegal Transactions, but a further inspection revealed that the OneCoin Blockchain Simulator has a special feature: this Block contains 70 Transactions which transfer the same OneCoins over and over.
To the left of the horizontal (left-to-right) arrows you see the so-called “Transaction Inputs”, they are transferred to the addresses on the right side, the “(Unspent) Transaction Outputs”.
This sequence starts with the Transaction in the bottom of this first screenshot. 1 846 445 863.89273381 ONE on address 9bYjDvUyzwFbuQKwuGvyjrc39RZHFrHwAN is transferred to two addresses, i.e. two different Transaction outputs are created:

  • 1 451.96978020 ONE to address 9YpmvUa3FBY78pVPbpSYWBaUTb5m858iN7
  • 1 846 444 411.92295361 ONE to address 9X4QCeEw46ACKtYbpj8R5DLbkj6SXPihBQ

In the last but one Transaction the Unspent Transaction Output of 1 846 444 411.92295361 ONE on address 9X4QCeEw46ACKtYbpj8R5DLbkj6SXPihBQ becomes a Transaction Input: 1 846 444 411.92295361 ONE is transferred to the addresses 9YpmvUa3FBY78pVPbpSYWBaUTb5m858iN7 and 9Zu13vuAW511mAiHkfgxQoXeHFvB2xAPja, so this creates two new Unspent Transaction Outputs.

And so on, and so forth until in Step 70 the 1 845 868 969.67460465 ONE from address 9ctjkoorMrx24A5gxQBVE5b33r1E6BfYEX is transferred to 9bwXn2YtZu19dVCpCGdqD3VV55nuDzx923 and 9WfRSAczj4nhtigAUKqvPioE147Z2qCV6o where this sequence ends.

It is obvious that Blocks and Transactions like these have no relation whatsoever with the OneCoin Transactions in the OneCoin and Coinsafe Accounts of OneLife members and are completely absurd, in other words: FAKE.
 

Number 4 Bullshit: KYC documents recorded in the Blockchain prevent “money laundry” and “bad things”, at least according to Ruja Ignatova

A very important chapter in the Ponzi System Handbook is the introduction of KYC / Know Your Customer procedures (wiki link). These procedures are rarely in place from the start of a new project (it would frighten a lot of potential investors) and submitting documents is rarely a requirement for a customer or member to buy new products. On the other hand, for organizers of Ponzi systems it is an excellent means to stall payments and even to close accounts of customers who are not able to fulfil the conditions.

The OneCoin Creative Team tried to give the KYC procedures a nice twist:

  • TRANSPARENT: We are open and honest in our dealings. OneCoin will set a new industry standard by being the first cryptocurrency storing KYC documents in its new blockchain. OneCoin wants to make cryptocurrency transparent, and part of our financial culture and everyday life. By working proactively with governments and policymakers, OneCoin will help the industry achieve better regulation.”


 
Ruja Ignatova herself gave an explanation:

  • “The third change to the blockchain is the following. we all know how difficult the market out there is in terms of regulation. Banking is difficult. We have to do a lot of procedures and cryptocurrency unfortunately is not a regulated business. So we are not like a financial institution or a bank. This is why we decided to regulate ourselves. We want to set a new standard in cryptocurrency and we will be the first and only cryptocurrency currently who stores KYC documents of the users. So in the blockchain we will store in an encrypted way documents of the identity of our users. This prevents money laundry. This prevents bad things and we are a most transparent cryptocurrency out there. We want to grow big and we want to be one force worldwide. For this we have to follow the rules and we even have to set the rules ourselves. So nobody abuses our coin or our concept. And you all know that this has been one of the most important things for me.”

On 27 February 2017 the very first FAKE “KYC Transaction” was visible in Block #207038

This is how five KYC Transactions look like on the Blockchain Simulator screens. Only a Transaction ID (TXID), nothing else, complete bullshit:

Assuming that buyer and seller have got in contact already (the arms traffic is a very small world), paying weapons via Dealshaker is very easy:

  1. Buyer and seller create a fake account from small third world countries where the regulations for identity cards and passports are vague.
  2. KYC documents (passport, id card, energy bill for proof of address) must be uploaded in the onelife.eu backoffice in electronic form. Google “identity card” and you get hundreds of examples. These documents can be falsified very easily. For the small OneLife Support team in Sofia Bulgaria it is impossible to distinguish all types of documents of 190 countries where OneCoin/OneLife is active.
  3. The seller creates an offer on the dealshaker.com platform, with only 1 Coupon Available and a clear warning in the Description that buyers MUST contact the seller before they buy the deal, to prevent others from responding. Deal price is 100% in OneCoins.
  4. The seller sends the hyperlink of the deal to the buyer or gives him a phone call.
  5. The buyer buys the deal and the OneCoins are transferred to the account of the seller. Nobody except these two parties will ever know what really happened.

Storing KYC documents in the OneCoin Blockchain in an encrypted way is complete bullshit.

Dealshaker.com Toy Gun – real screenshot, we only changed the PRICE and set Coupons Available to 1

And if the combination of a toy with such a high price is too suspicious, the seller can make an advertisement with something expensive, like a 3.06 carat diamond.
Dealshaker.com Diamond – real screenshot, we only changed the PRICE and set Coupons Available to 1.
NB: the original price of this diamond is 200,000 EUR. This a 50/50 deal, i.e. 50% / 100,00 EUR must be paid in euros, the other 50% in OneCoin (no joke).

 

Number 5 Lie: Brand new BMW X6 xDrive35i can be bought on Dealshaker for 12,307.69 ONE (i.e. 100% OneCoin, no euros)

There is so much rubbish offered on the Dealshaker platform that this topic deserves a dedicated page, but because of the consequences and publicity we found a clear “winner”. This deal was available from 25 March 2017, it was sold out in a couple of hours (50 coupons).

BMW X6 (Dealshaker link)

The same merchant also offered a Mercedes GLS 550 (Dealshaker link) which also was sold out (oversold in fact, 50 coupons offered, 52 sold).

The Dealshaker price for both cars was 12,307.69 ONE, so apparently the dealer did not ask for euros …..

Let’s assume that for a merchant the purchase/cost price of a BMW X6 xDrive35i in China is about 50,000 EUR. In March 2017 it was possible to buy a Power Pack for 48,780 EUR in the Shop on www.onelife.eu. This “educational package” combined the Tycoon+, Premium and Infinity+ Packages; it had a total of 531,818 Promotional Tokens and 7 Splits.
7 Splits (= double) means that the number of Promotional Tokens is multiplied by 2 x 2 x 2 x 2 x 2 x 2 x 2 = 128, i.e. 128 x 531,818 = 68,072,704 Tokens, before you submit them for “mining”.

Divide 68,072,704 by the Difficulty Factor for a package with “automatic mining” in that period (98) and the result is 687,603 OneCoins. So instead of buying and reselling BMW or Mercedes cars, the merchant could have bought Power Packs and with the same investment he would receive 55 times as many coins as he asked for the BMW!!!.

We eagerly waited for the OneLife IMAs, proudly showing the pictures of their new cars, completely paid with OneCoins (well, not really, but we were still curious about the outcome).

The dénouement came on 25 April 2017 when the following message appeared in the onelife.eu backoffice (login required): DealShaker taking legal precautions against fraudulent users

  • “We take buyer protection extremely seriously and are willing to cooperate with the responsible authorities in the unlikely event that fraud cases are detected.This release comes as a warning issued following recent complaints, reporting a chinese car seller, requesting payments outside of the coupon price, indicated in the DealShaker platform. OneLife warns you to treat your deal coupon as a deal contract and follow the input explicitly mentioned in the deal description and terms and conditions of the seller.All fraudulent merchants will be blacklisted and reported and no compromises are made if any other deceptive behaviour is attempted or reported.All mislead buyers by the chinese car seller and all affected by similar cases have been reimbursed the full coupon price with no exceptions.The DealShaker and OneLife teams would like to inform all merchants that due to the above any real estate and car deals will be rejected and banned from the platform for all Chinese regions, until further notice.”