How Ruja Ignatova Scripted Onecoin Scam?

Cryptocurrency prices were changing rapidly, investments were growing 2X,3X in almost every six months. This kind of return which Bitcoin was delivering attracted many people attention and people became fascinated by this currency. You might have also seen some of your friends or relatives had also started investing in these cryptocurrencies after being exited.

Period Currency Price (USD)
December(2015) 1Bitcoin 500
December(2016) 1Bitcoin 780
June(2017) 1Bitcoin 3270
December(2017) 1Bitcoin 19784

But most of the people came to know about Bitcoin when the price had rocketed high. Very few people had invested in the early days of Bitcoin as it was not so known but people who had invested in those days were rewarded with good returns. But those who joined the party late were not so lucky, there was not much left for them and few of them even suffered losses.

As this Bitcoin Boom was going on Scamsters entered the market and tried to take advantage of this ongoing boom. One such person was Amit Bhardwaj, he told people to submit One Bitcoin in his company named Gain Bitcoin and promised in return, 1.8 Bitcoin after some time. He also claimed to have his Mining Company in China, People trusted him and submitted Bitcoins in his company, but he fled away with coins but was arrested later on. Many such Scams erupted in this Boom period of Crypto.

During this period Dr Ruja Ignatova thought of a very Big Scam and how to take advantage of this ongoing Bitcoin Boom. Let’s understand how she planned the scam

Who is Dr Ruja Ignatova?

Dr Ruja Ignatova is a Bulgarian national, she Incorporated a firm in the United Kingdom and started telling people and investor that she has developed a rival of OneCoin which will have more value than Bitcoin in future.

Ruja completed her PhD from Oxford University and was formally employed by Mckinsey. She was fluent in English & several other languages. Her Impressive profile and her clear vision made people believe her words and people started investing in Onecoin. She told that One coin is a safe currency based on Blockchain technology & they also do KYC to make sure that this is not used in any illegal activity. In her words “the first cryptocurrency with a monthly audit of its blockchain.”

Promotion of Onecoin:  To promote Onecoin Ruja started organising Events and conferences and different places. She started telling people that Onecoin will be bigger than Bitcoin and in future, it will be the biggest in the World and next two years no one will talk about Bitcoin and the only crypto which will be in peoples mind will be Onecoin. People can use Onecoin for payments. she asked investors to join the revolution and invest.

In her words “In two years, nobody will speak about Bitcoin any more!” “OneCoin is easy to use, OneCoin is for everyone […] since we mined our first coin in January 2015, our growth exploded,”

What made People Believe her

Ruja Focused on four important things:-  

Hype: She created hype around Cryptocurrency and Onecoin and told people how popular Onecoin would be in future and the only crypto which people will use. People have witnessed bitcoin revolution so they believed her Hype.

Fear of Missing out: Most of the people heard about Bitcoin when the prices were too high so the people who entered late were not able to get good returns. Ruja told investors to join early to gain maximum

Saftey: Ruja Told People that Onecoin is very safe and it uses Blockchain Technology, which is very safe so no has to worry about the safety According to Ruja this was “platform for innovation that will change the financial system.”

Fortune: She kept telling people how much money they can make in a short period.

She grandly organised her Events and conferences to create an impact on the investors also she used Forbes Magazine edited paid ad showing that she was featured by the magazine to influence the investors. People were influenced and they started investing heavily in Onecoin as they didn’t want to miss the opportunity.

What is OneCoin?

In reality, Onecoin was not a cryptocurrency. OneCoins weren’t actually mined using computer resources It was all fake, no mining was going on and no blockchain was being used. They were using SQL servers which do not support cryptocurrency. The price change was manipulated and programmed. Everything was fake. They allocated fake coins and took Money. People in their greed for quick returns never asked anything. Ruja knew this can’t go forever, so to make more money quickly she decided to market her product differently. She wanted to reach more people in less time, for this she started webinar and organized the events in different locations around the world like Dubai, London. Her events were very grand to attract investors. People were influenced and invertors from around the globe started investing in Onecoin. She had investors from countries like China, the UK, South Africa. Chinese investors invested around half a Billion Dollars around(Jan-Jun)2016.

The next weapon which Ruja used to promote her scam was MLM. She knew if she has to go fast and reach more people then MLM is the best thing. She organised the meeting with the top leaders of MLM also known as influencers and convinced them to work for her by offering them a heavy commission. These influencers then reached to their network of salespeople to promote Onecoin. This step made Onecoin more popular, everyone was talking of Onecoin and the investors in Onecoin increased to manifolds. MLM influencers also invested part of their commission in Onecoin for quick returns not knowing that they were investing in the fake product. Ruja, on the other hand, was making Billions from this scam. She had promised investors to Open an Exchange where coins can be exchanged for Cash but this Exchange opening kept on delaying which made investors suspicious. Investors were raising questions about the authenticity of Onecoin. In October 2017 Ruja announced the Event date to solve the concerns of investors and also exchange opening date. People came to the event and waited for Ruja and kept waiting but she didn’t turn up. Later it was known that she had done scam and fled, No one knows where she had gone. Investors had lost all their investments. Scam Size was around $5 Billion. Ruja had invested the money from the scam in Properties in Bulgaria, She also owned a yacht and other luxuries. While she was on a run, her brother Konstantin Ignatov was arrested at Los Angeles International Airport in March. He pleaded guilty to money laundering and fraud charges and is now facing a maximum of 90 years behind bars.FBI is also looking for Ruja Ignatova for Money Laundering, cheating and other charges.

How was she able to do such Fraud?

Cryptocurrency is a new area, People are not much aware of this field no regulator is looking after, this makes easier for scamsters like Ruja to do the fraud. Another reason is the Ponzi Scheme. People want quick money These people promise quick money in less time, so people get influenced, and in greed, they get trapped losing their hard-earned money.

 

Bitcoin Single Biggest Day Dip

Bitcoin has just taken the single biggest day dip that it’s had in years

Bitcoin has just taken the single biggest day dip that it’s had in years technically this happened over two days I guess but 51 percent to the bottom over 50 percent in 24 hours 63 percent if you’re measuring from the local top that we had about three weeks ago 63 percent you know what this looks like to me about four years ago back in August of 2016 I’m gonna make a comparison to four years ago it’s not exactly the same I get that you know the dip back here not as severe I get that but there are some similarities for instance the market structure looks similar besides that just like today in 2020 back here in 2016 this was about a year after the market had been going up for a little over a year a lot of people were suspicious back in 2016 of the this first rally right here see this first rally in 2016 was caused because a lot of people bought into a Ponzi scheme so people weren’t sure if it was leave of, if it was legitimate so this second rally the one I’m comparing it to people felt a little bit better about this one because you know they just put a little bit more of their trust and boom shakeout just like we have today yet after this Bitcoin never went that low again.

I was disheartened to see a 50% shakeout in Bitcoin of course I was disheartened did I ever think of selling did I ever think of capitulating no I honestly didn’t the fundamentals for Bitcoin are still there, you know that the better question is if Bitcoin is supposed to be this uncorrelated asset Hey bitcoins supposed to be this hedge what the hell is going on hedges are not supposed to do this and the global markets are tanking all across the world if Bitcoin was ever gonna be a hedge wouldn’t now let’s see.

Comparing 2008 global financial crisis

I want to bring you back now to twelve years ago this was before Bitcoin even existed so we need to go to traditional markets I’m talking of course about a special time in financial history and that was the 2008 global financial crisis many people consider the 2008 global financial crisis to be the worst financial crisis since the Great Depression now that’s of course before 2020 but everything in 2008 tanked including the hedge gold did you know that gold also suffered a massive dip in 2008 despite the fact that it truly is an uncorrelated hedge why did that happen gold is supposed to be the hedge well I mean Gold probably dipped for you know a multitude of reasons it’s probably most likely you know there’s fear and negativity in the air in 2008 maybe some people needed cash maybe hedge funds were managing their money overall I think it was just because there was a lot of fear and negativity in the world at this time but guess what gold is a hedge a few months passed and gold went right back up and you know the year passed and it went right back up and pretty soon gold was rallying higher than ever so the point is even hedges are susceptible to massive sell off so hopefully just like gold in 2008 hopefully we see Bitcoin rallying backup as well it’s not just me who thinks that by the way Ari Paul is the chief investment officer for an investment firm and he thinks something similar he says he says I’ve had a really simple mental model for Bitcoin in a severe equity sell-off that’s been unchanged since literally 2006 look at gold heading into during and coming out of the 2008 financial crisis I think that’s Bitcoin this time around and that’s what I think.

Latest News on Crypto Bitcoin

Bitcoin is still up around 10% this year the S&P 500 it’s down 13.5 percent so far this year

Bitcoin

Bitcoin is still up around 10% this year the S&P 500 it’s down 13.5 percent so far this year the Dow Jones Industrial Average down over14% and yet if you’re probably asked a lot of professional financial advisor out there they’re probably telling people to buy more stocks in that Bitcoin well that’s so scary Bitcoin stuff trust yourself remember to see the big picture we are an extraordinary times right now for global markets but remember that Bitcoin fundamentals are the same as they’ve always been in fact are getting better all the time the Bitcoin tends to rally exponentially after 1/2event don’t get shaken out okay moving According to Raul Powell the CEO of real vision he tweeted out that hedge funds may have liquidated some of their bitcoin long positions to reduce portfolio risks silly guys obviously this makes sense though to the hedge fund manager but i think that this has actually been something that is an underappreciated factor in the current bitcoin price drop.

We spent a lot of time back in 2019 talking about hedge funds and high net-worth individuals and other big-money players actually getting into Bitcoin it’s unsurprising that these big-money tourists would be some of the first ones to run for the exits at the first sign of any real trouble in the markets, the clever ones of course will stay because bitcoins up 10% this year whatever thing else is down massively but many of these traditional players they are adding sell pressure at the same time that we see the plus tokens scam cashing out and big crypto whales splashing around trying manipulate the markets even more so obviously it’s no surprise the Bitcoin has taken a big tumble with all these massive forces acting on the price.

Coin project Bitminutes

 

Cons first DAP has been announced for a coin project, it’s called bitminutes is a platform that tokenized is mobile airtime a coin will be able to be swapped for tokenized airtime or the BMT tokens which can then be traded for real airtime to either top up a mobile or as a way to easily swap value a Summa by trading those tokenized minutes this is all part of the overall vision to bring a stable and trusted digital currency to Africa.

Overinflated fiat currencies and a really fractured continental approach towards interoperability of finance this has been a big hindrance to economic activity across the continent has been a barrier for regular people all over Africa to be able to access financial services a conman 11 a conscript regime it’s finally becoming real with enough willpower anything can happen.

Cardano announced their layer to scaling solution called  Hydra

Big news from Cardano, they have just announced their layer to scaling solution called Hydra now at a technical level Hydra will use state channels as a second layer scaling solution for the Cardano blockchain thus the state channels will in essence shard Cardano without actually sharding Cardano ledger itself hydra will be built on top of the stake pools in Cardano and each pool operator will thus be able to operate their own state channel or hydra head if you will now at this time simulations are showing that each Hydra head can handle around 1,000 transactions per second so if for example we have a thousand stake pool search handling around a thousand transactions per second then Cardano could theoretically achieve a throughput as high as 1 million transactions per second no you read that correct 1 million transactions per second. Hydra has been in the works for five years and will serve as a key piece of the card ah no proof of stake protocol this is definitely small some stuff, we will really start seeing some of the awesome things that Cardano is actually capable of and I think it’s gonna surprise a lot of people.

India’s central bank plans to fight the Supreme Court crypto ruling

India’s central bank plans to fight the Supreme Court crypto ruling which as we all know overturned their ban on banks being able to provide services to crypto exchanges and for regular people being able to deposit Fiat to be able to buy Bitcoin in the first place central bank’s man can’t trust them as far as you can throw them and they’re pretty heavy what a great example of just how governments are just anti human organizations only focused on their own sociopathic mechanisms of Dominion and monopoly governments man anyway so the stated reason for why the RBI will lodge a review petition over the court ruling is that the bringing back of crypto trading could pose a risk to the banking system and this was cited as the primary reason behind the central bank’s response to what the Supreme Court said and you know yeah they’re kind of right crypto indeed erode their authority it erodes their monopoly on power and this is a good thing for people it does pose a risk to the banking system.Indians like everyone everywhere want freedom of Finance let us hope that the court upholds its decision and actually lets the free access to crypto currency continue in India we do not need more limbo for the crypto markets in one of the world’s biggest markets.

Bitcoin Price fell below $9,000

bitcoin price drop

This week Bitcoin price continue to fall, the price fell 4.4% Friday, droppng below $9,000, lowest in last week.

Market experts belived it’s mainly due to the lack of positive market drivers and speculation that the U.S. Federal Reserve might pause this year’s
rate-cutting cycle, which could curb demand for the cryptocurrency as a potential inflation hedge.

The price dropped to $8,800 as of 18:57 UTC (1:57 p.m. New York time), according to Trading View. It’s still
more than double where bitcoin was at the start of the year, leaving the cryptocurrency as one of the world’s best-performing asset classes in 2019.

Bitcoin had rallied more $2,000 in late October after Chinese President Xi Jinping declared that the country would embrace blockchain –
the decentralized computing networks underpinning cryptocurrencies – as a “core” technology, followed by the reveal of hundreds of blockchain projects already in motion. Since then, though, the price had mostly fluctuated within a range between $9,100 and $9,600.

The world’s most prominent crypto currency Bitcoin fell to as little as $8,666.39 around 10 a.m. EDT, having lost nearly 6% of its value in less than 24 hours, CoinDesk data shows.

At this point, the cryptocurrency was trading at its lowest since October 25, additional CoinDesk figures reveal.

Following this decline, bitcoin has experienced only modest gains, rising from its intra-day low to nearly $8,900 around 5 p.m. EDT.

The Friday’s price drop accelerated after bitcoin currency broke below its 200 day moving trading average of $9,186, which had been seen as a price support by some traders using technical analysis.

“This is a pretty classic example of a technical move,” said Kevin Kelly, co-founder at Delphi Digital, a cryptocurrency research firm in New York.
“It just sort of broke to the downside.”

The price drop appears to have triggered margin calls for some traders, leading to position liquidations and creating additional selling pressure, Kelly said.

One of the macro-economic theory for buying bitcoin is that, it’s like gold, and can be used as an inflation hedge, Kelly said. But with increasing signs
that the economy might be responding to the Fed’s three interest-rate cuts earlier this year, speculation is mounting that the U.S. central bank might refrain
in the near term from further moves to ease monetary policy, he said.

John Todaro, director of digital currency research for TradeBlock, offered a similar point of view.

“Bitcoin, and the digital currency market in general, posted a strong rally following the Chinese President’s comments in October, and you are starting to see prices come back some as investors tease out the actual implications of his comments,” he stated.

“It is still unclear to the extent, if any, China will actually embrace digital currencies and non-sovereign assets such as bitcoin or if the country is simply embracing private blockchains.”

Going forward, he emphasized that bitcoin’s lackluster trading activity makes it vulnerable to notable price fluctuations.

“Bitcoin has seen renewed volatility over the past 10 days and could easily push past support/resistance levels during times with thinly traded markets.”

While many traders thought bitcoin, as the original blockchain and biggest digital asset by market value, might benefit from broader adoption of the technology, if China has been at work developing a digital version of its own currency, it could be a win for blockchain technology on the whole but mean little for bitcoin today.