Investing in cryptocurrencies may be a thrilling experience.
There are more than 18,000 coins to pick from the market can see significant gains oral
losses in a single day.
And crypto projects range from worlds changing to ridiculous, but cryptocurrency investing
is highly risky.
It's not a good idea to get caught up in scans.
Unfortunately crypto's brief history is littered with instances of scammers.
And one coin was one of the most famous across the course of several years.
The founders of one coin, Lood more than $4 billion from investors all over the world.
So how did it all get started?
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Welcome to crypto trends
In today's video, we'll talk about one coin scam history of the scam, the one coin exchange
and lessons we should learn from the one coin scam.
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So without further ado, let's get into it.
Introduction to one coin scam.
One coin was a cryptocurrency that was actually a Ponzi scheme, the scam, which was started
in 2014 by self-styled crypto queen RJA, Ignatova gained millions of investors over a two to
three year period.
The gorgeous RJA persuaded people 175 countries to buy educational materials and one coin
tokens through flashy launches and attractive messaging.
She assured people that they would become wealthy and that they were a part of something
significant.
Unfortunately, the something large turned out to be the biggest scam in crypto history.
One coin advertised itself as a, a cryptocurrency, but it never had a blockchain to back it up.
Multi-level marketing was used to encourage people to sell to their friends and relatives.
The project had its own platform and was not traded on any cryptocurrency exchanges.
RJA Ignatova vanished in 2017 while authorities throughout the world tracked down the scammers.
She hasn't been and seen since her brother who took over as CEO of one coin was jailed
afterwards.
If all of this seems like a movie storyline to you, Hollywood agrees.
There's a film called fake in the works.
According to reports and the missing crypto queen of BBC podcast has now produced nine
episodes about the scam, understanding the coin RJA Igni.
Tova an Oxford law graduate launched one coin in the cryptocurrency market in 2014, claiming
to be the finest digital currency, mining coins, providing an EAL and facilitating trades
and transactions were among her other claims.
It also promised that anyone who joined the digital revolution would have access to financial
services that were simple, quick and secure.
She pushed the coin as the most efficient way to get Grady financial organizations out
of the old payment system, because the concept of cryptocurrencies eliminates the need for
an intermediary and creates a trustless network for transactions.
It quickly became the most popular digital money.
At the time.
This virtual coin quickly gained a big following in over 195 countries on six continents.
Investors wanted to store the digital currency for a long time because they understood the
value wine coin would rise in line with market demand.
When it adopted the pyramid form, this coin had Ponzi scheme characteristics.
It introduced buying packages such as educational resources instead of selling the digital coin
directly to users, the corresponds were supposed to come with tokens that could be used to
mind the virtual currencies, however, Mo most of the instructional contents provided were
plagiarized.
Whereas these tokens kept consumers intact.
Ignatova worked as the founder of one coin limited and one life network limited for two
years until she abruptly vanished in October, 2017.
As a result, the one coin scam once promoted as a possible virtual currency became one
of the greatest cryptocurrency frauds of all time.
One coin exchange.
The one coin exchange X coin X was an internal marketplace where one coin could be exchanged
for other currencies.
The X coin X was a private marketplace for investors who have spent more than the initial
packages permitted the exchange set a limit on how much an Esther might sell depending
on the correspond.
He or she purchased.
Individuals might transfer their cryptocurrencies into euros using X coin X above all the company
claimed to have given each person who signed up for the site, an EAL, it would've allowed
wire transfers to be performed.
Using digital currencies.
Individuals might then transfer the Euro directly to their bank accounts for various questionable
reasons.
Everything the company claimed turned out to be a fake.
For example, only the corporation was able to trade tokens for euros.
Furthermore, the business was divided into two sectors.
The first was primarily concerned with marketing and promotion.
The second operated upon the affiliate network that allowed users to benefit just by referring
others on March 1st, 2016, the exchange became briefly inaccesible for two weeks, without
warning, ostensibly for server maintenance, it caused concern among investors because
they can only withdraw their money from one location.
Traders discovered that several transactions had expired when it reopened on March 15th,
2016.
However, the exchange was suddenly shut down in January, 2017 without warning one coin
as a fraud, Igni Tova arranged and attended many lectures throughout the world while pushing
cryptocurrencies.
She promised people at those occasions that every investment they made in the company
would pay out threefold.
She further guaranteed that if current investors sold their packages to friends or peers, the
commission would be enough to turn them into billionaires.
This technique paid off for the company as it attracted a large number of investors because
these claims were too good to be true.
Numerous governments, federal agencies and international financial organizations began
to pay attention to one coin.
They pointed out that the so-called coin lacked a blockchain, which is at the heart of digital
currencies.
What was even more shocking was that this digital money could not be used for trading
or transactions such as shopping when ex coin X was shut down for the second time in January,
2017, various financial institutions, such as the Hungarian central bank and anti fraud
organizations such as the Italian antitrust authority issued warnings about it.
As a result, various countries began to investigate whether the company was legitimate and advocated,
a ban federal investigation of one coin.
The us department of justice concluded that Igni OFS misleading promises were effective
between 2014 and 2016.
The company made 3.7, 7 billion in revenue and 2.5, 1 billion in profit.
It used the money to pay out the investors in order to keep its true goals disguised
until it reached its goal.
The corporation used to decide the one coin pricing internally rather than based on market
demand.
According to the department, it was discovered throughout the examination that it did not
have a proper blockchain for recording and tracking transactions.
As a result, mining coins was impossible.
It means that the coins distributed to members were fake.
RJA Ignatova went missing in October, 2017 after missing a seminar in Lisbon Portugal.
This was the start of her disappearance.
The majority of people believed she was kidnapped or murdered by financial TAIK Owens.
The federal bureau of investigation or FBI report.
On the other hand, paints a different picture.
The one coin founder boarded an aircraft from Sophia Bulgaria to Athens Greece on October
25th, 2017, and has not been seen since the FBI arrested Carl Sebastian Greenwood, one
of the one coins masterminds in 2018 and her brother Constantine Igni Tova in November,
2019.
However, it comes as no surprise that the corporation has denied any claims that it
isn't a digital payment system lessons.
We can learn from one coin.
Nobody wants to be a victim of a scam, especially if they are aware that it is possible.
Here are a few strategies to secure your strategy.
Number one, research, a project's leadership, check out the leadership before you invest
in anything, whether it's a cryptocurrency or a stock.
It's difficult to say whether internet research in 2014, would've revealed this since Ignatova
was already facing fraud claims in Germany, authorities in a number of countries began
to the project's legitimacy as early as 2015 strategy.
Number two, be aware of projects that dismiss critics as haters investors were invited to
join tiny communities managed by OneCoin marketers.
It was almost like a cult indoctrinating its followers to solely believe the positive aspects
of the project.
Any unfavorable news items or voices from outside of these groups were branded as haters.
The wary.
If you're a member of an investment forum that employs similar tactics, when your money
is on the line, it's tempting to get emotionally involved.
Investigative journalists.
On the other hand, rarely criticize a project solely for the sake of criticizing it or because
they dislike someone, listen to the critics and weigh in on their arguments.
Then you can decide for yourself whether or not their point of view is valid strategy.
Number three, use a reputable cryptocurrency exchange by just trading on its own exchange.
One coin managed to hide the fact that it wasn't a real cryptocurrency, big exchanges
have relatively small coin lists.
Thus, there are often solid reasons why a coin isn't available on big cryptocurrency
apps and exchanges in the United States.
Always try to figure out why a currency is difficult to purchase and never trusted that
only works on its own exchange strategy.
Number four, look beyond the crypto hype.
We're seeing more and more PR driven enterprises as the crypto business grows.
As currencies tried attempt inexperienced investors to acquire their coins paid celebrity
endorsements are simply the top of the iceberg.
Conduct your study to find initiatives with utility and a long term strategic plan.
Another simple technique is to look up token name and scam on the internet.
Although you may come across some false charges from unhappy investors who lost money.
When the stock price dropped, the comments are still worth rating sites like token S
sniffer and coin can also help you avoid scams and dead currencies.
Strategy.
Number five, don't get seduced by promises of high returns.
Some investments like we've seen in crypto can generate exceptional profits.
However, if a coin offers such large profits, it's a clear crypto red flag.
Nobody can accurately anticipate whether a cryptocurrencies price will rise or fall.
If you're participating in a defi loan scheme or staking your coins to gain incentives for
contributing to the overall network security, the rules are different.
Those are frequently legal methods of earning interest on your possessions even yet.
Be sure you know how those promised revenues will be achieved.
Strategy.
Number six only invest money.
You can afford to lose the conversations with people.
Who'd placed.
Everything they had into one coin were one of the most depressing sections of the BBC's
podcast.
Worse.
Some had taken out loans, families sold land and cattle to buy into the system in Africa
where marketers targeted.
I isolated farmers at harvest season.
Even if an investment appears to be an unmissable opportunity, do not borrow money to make the
investment.
The danger is simply too great.
Final thought.
Unfortunately, cryptocurrency has all of the makings of a great scam.
It is based on a technology that many investors are unfamiliar with.
There are few regulations in place to prevent people from lying about their plans or manipulating
the market.
And the news has been dominated by stories of massive rewards and crypto billionaires.
This makes it pull for thieves to create believable and enticing claims.
They want to create an environment in which individuals are afraid of losing out on a
profitable chance, arm yourself with reasoning and innovative thinking.
And you'll be less likely to hand over your money.
What are your thoughts about one coin scam?
Did you invest in it or maybe some of your relatives?
If so, how much, what were the takeaways from it?
Please let us know your thoughts in the comment section down below.
This would help others.
When investing in cryptocurrencies with that being said, here we come to the end of our
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