OneCoin proclaims itself to be the Bitcoin killer. The centralized digital currency platform has announced that it has doubled the total number of OneCoins currently in circulation. The announcements are making rounds on the internet as a YouTube video from one of the OneCoin events presumably held in Bangkok, Thailand and on other social media outlets.
OneCoin Limited (in a press release available on its website) states that the newly launched blockchain will to be faster, more secure and supports mass transactions. The new blockchain was unveiled in the OneLife Mastermind event where they apparently mined the genesis block as well.
According to the founder of OneCoin Ruja Ignatova, the introduction of new blockchain has also resulted in doubling of all the OneCoins held by the community. The press release also claims that the new blockchain will be capable of mining 50,000 coins per block which will help the digital currency create a strong global merchant network. It further claims that the new blockchain will “run every single minute” (read block discovery) compared to the older version that yielded blocks every 10 minutes.
“We do not expect a steep price movement after October 1st. Cryptocurrency value is driven by supply and demand – and demand is driven by brand and usability. By doubling the coins, we will be able to bring the coin to more people and places and strengthen the brand. Also, doubling the coins will allow us to start including merchants to use the coin – which will take us into a new league of cryptocurrency – becoming the first-choice cryptocurrency for merchants. These developments are extremely exciting and will make our coin the global leader in the cryptic market”, says Ruja Ignatova.
While the video shows OneCoin community cheering at the new development, it raises more questions than answers. Provided that OneCoin can’t be publicly traded and the valuation of the cryptocurrency is completely dependent on the money spent on membership packages by the community members, the whole development means just one thing. For starters, OneCoin just devalued its digital currency by 50 percent by doubling the number of coins. Also, by mining 50,000 coins a minute with virtually zero places to spend or trade, what are they going to do with them?
Ruja Ignatova, in her speech also announced that OneCoin will go public in the later part of 2018 after mining sufficient coins. Some of the goals stated by her include a valuation of EUR 25 per OneCoin with one million merchants onboard.
In one of the Reddit posts, a user claims that OneCoin is going to surpass Bitcoin as it will be able to mine more coins and more people will be getting rich. Guess, we can soon expect a lot of OneCoin community members with millions of OneCoins (read as OneCoin Millionaires). Good luck with that!
OneCoin is also under investigation by the London City Police for alleged fraudulent practices. The FCA and other regulatory bodies in Europe have issued warning to consumers against OneCoin as well.