Wednesday, 18 May 2016

"Exclusive interview with Dr. Ruja Ignatova, PART II"

OneCoin just released a new video titled "Exclusive interview with Dr. Ruja Ignatova" (part two). Let's have a look at it:

Why does OneCoin limit coin sales?

5:45 -> She makes an attempt to explain how come OneCoin's inner exchange does not work. As you might know the success rate of selling coins there is close to 0 %.

The explanation Ruja offers is:

Ruja: The amount of sell and buy offers vary from time to time.
- Isn't it normal for an exchange?

Ruja: OneCoin deliberately limits the amount of coins that can be sold/bought because otherwise the price of the coin would be distorted.
- The price is already distorted because onecoin does not have any actual value and the price of the coin is dictated by Ruja. In fact OneCoin does not limit the selling, there just is no one interested in buying the coins. I have not seen a single person complaining about failing to purchase coins. They are all complaining about expired sale offers.

Ruja: The exchange exists only as an learning experience: "people can learn to trade"
- Well, they sure are learning by the hard way about ponzi schemes. Also most of the sale offers fail/expire so where is the trading happening?

Ruja: The company does not buy back the coins.
- Well, I'm not surprised. Why would they buy worthless coins?

Ruja: The time difference is causing sale offers to expire. "When you're awake China sleeps."
- This is total bullshit. As far as I know the sale offers are pending several days. There are people complaining that they have not managed to sell their coins in months. How does that go along with the sleeping cycle of the Asians?

8:30->  How is the OneCoin value created?

Ruja: The value of the coin is calculated by adding the electricity cost and the computer power used. 
- Ignatova really emphasizes that this is truly the core of the OneCoin's value. Only after that comes the value from the demand according to Ignatova.
- First of all mining a centralized crypto currency with a massive computer power and huge electricity cost would be utterly idiotic. As the currency is centralized there is no need to generate the data base with an army of computers. All it would take is a single ordinary computer.
- Secondly, the idea of the electricity costs and the computer power used giving value to a currency is totally absurd! They are costs for the manufacturer. Nothing more. For example Bitcoin's value does not add up from the cost of electricity and computer power. Bitcoin's value is determined by the demand in the open market. The electricity costs only make mining that much less desirable.

"Crypto currency is not backed up by anything. It's actually worthless. OneCoin is not backed up."
- According to Ignatova OneCoin is however still valued because of its brand. She claims that there are about 2 million OneCoin members valuing OneCoin just because of the electricity costs, the computer power costs and the brand. However the vast majority of the world's population simply disagrees with this. How would anyone value a coin that is not valued even by its creator. - OneCoin does not approve its coins as a payment for anything. You can't use your onecoins even for internal purchases in the system, such as education packages, CoinCloud or event tickets. 

I would imagine that the first step to promote your beloved coin would be accepting it  as a payment method yourself. OneCoin's way is so absurd that they are now accepting even Bitcoins for payments. I would not be surprised if they were soon accepting money transfers also via Western Union to sell their education packages when their bank accounts continue freezing.

"We are probably the only company that focuses so much on usability of the crypto currency."
- Well, how come you have this thing called CoinSafe? A virtual safe that prevents using coins for a year or two. What's the point in that? How come there are still no merchants accepting onecoins as a payment method? That was already supposed to happen as promised by OneCoin's leaders.

"Education is our product and some of our members choose to mine the coin."

16:20 -> "Only about 10 % of our members mine the coin currently. Most of the people participate in the program for the education."
- Well she does use the word "currently" but then again she points out that the most of the members are only in it for the education. This is a bit confusing... The Finnish country manager Tommi Vuorinen has made it very clear on several occasions that the education packages are only there for avoiding problems with financial supervisory authorities.

"I have never done a network marketing company before."
- That's a blatant lie. She had a thorough rehearsal with BigCoin before turning her act to OneCoin scam.

I'll finish this update with citing OneCoin's Finnish Country manager:
"Invest only such an amount that you can lose with a smile in your face."

He's the one on the right of the picture showing the value of onecoin with his fingers.

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