The biggest MLM scams in the Bitcoin world – and what’s left of them today

Some are in jail, others in a villa in Dubai: Scammers had a great time in the crypto scene in 2017. Many of the rip-offs at that time spread via multi-level marketing (MLM) and the promise of quick profits. But what happened to the biggest MLM scam coins of that time? And where are their former operators today? We collect the fragments of some of the biggest of these rip-offs and take a look at their methodology.

From the unattractive side effects of the Bitcoin formula hype

OneCoin, the alleged mother of all Scams 2017. The name OneCoin has become the epitome of Scams in the crypto range. As is typical for such rip-offs, it linked multi-level marketing with digital currencies. OneCoin actually bought training in the Bitcoin formula area. Here is the review by onlinebetrug. This was accompanied by customers receiving mining rights for the crypto currency, which was not yet publicly tradable. As soon as OneCoin was listed on a crypto exchange, profits would skyrocket, according to the promise. The customers earned additional money by recruiting new partners. However, the listing never took place.

“In reality, the OneCoin crypto currency was the cover for a system whose sole aim was to accommodate new consumers, according to the new Tiroler Tageszeitung in an investigative report about OneCoin.

After about two years the spook came to an end:

After numerous warnings from financial supervisory authorities all over Europe and various police investigations OneCoin was exposed as a snowball system. In April 2017, BaFin imposed a business ban in Germany.

In many cases, the initiators of companies with fraudulent intentions do not act as liable CEOs, but merely as popular sponsors or management consultants. But not so in the case of OneCoin: The whereabouts of former CEO Dr. Ruja Ignatova, after she had been arrested and released on parole in the meantime, is currently apparently unclear. Some voices claim that she lives under a false name in Ukraine. It seems, however, that police authorities in Europe are still searching for her.

Ethereum Wallet for Opera Users: New Feature to Promote Adaptation

Android users of the Internet browser Opera can now look forward to the integration of a wallet for Ethereum. This was announced by the company on 13 December at Hard Fork Decentraliced in London. This makes tangible what the company calls “Web 3.0”: Blockchain, crypto currencies and DLT solutions.

With Opera, Android smartphone users will be able to access an integrated wallet about Ethereum’s Ether.

Cryptosoft should make the often criticized complexity of handling crypto currencies much easier:

“We support Android smartphone users with an innovative cryptosoft browser that gives them the ability to experience Web 3 seamlessly: I’d like to invite all tech enthusiasts who may have heard of Blockchain, but haven’t experienced it yet, to try it with our new browser and Web 3. We made it very easy. We hope that this step will accelerate the transition from crypto currencies from speculation and investment to actual payments and transactions in the daily lives of our users, says Krystian Kolondra, EVP at Opera in a press release.

Adaptation through simplified application

What the company’s vice president is talking about is actually a hurdle that has held back the mainstream adaptation of Bitcoin and Co. so far: their application. Meanwhile, it still seems much easier for users to pay by card or in cash. However, the combination of crypto wallet and smartphone should make this easier in the future. Initially, the Wallet only supports Ethereum, other crypto currencies are also planned:

“We decided to support Ethereum because it has the largest community of developers who build Dapps and have developed a lot of dynamism. Opera supports the Ethereum Web3 API, which makes interaction with Dapps smooth for the user. We believe that at some point all browsers will integrate a kind of wallet that will allow new business models to be developed on the web,

says Charles Hamel, product manager at Opera.

Joseph Lubin, Ethereum co-founder, is also enthusiastic.
Joseph Lubin, co-founder of Ethereum, sees this as an important step:

“It’s an important step for one of the world’s leading browsers to add an Ethereum-based crypto-wallet and Dapp-Explorer, and it speaks for Opera’s innovative roots and commitment to using next-generation technology. We see this as an important moment in improving Dapps accessibility, opening Web3 to the mainstream audience, and encouraging developers to build on Ethereum.”

Maybe the Ethereum course (ETH) will work again with the increasing adaptation. This is currently just under 86 US dollars per ether.

Cashless crypto trader – Is the answer Bitcoin or e-krona?

“Sweden will probably become a cashless society within three to five years”. With this sentence, Cecilia Skingsley, a voting member of the Executive Committee of the Swedish Central Bank (Riksbank), has rekindled the debate about the consequences of losing cash in daily use. One solution the Riksbank is researching is the issuance of a state digital currency, the so-called e-krona.

Bitcoin in crypto trader competition

The spectre of cashless society: In Sweden, a real-time experiment on the loss of cash from public life has been taking place for years. The use of cash is steadily decreasing, but the use of digital crypto trader payment methods such as EC or credit card payments is increasing. According to this year’s World Payment Report – a study dealing with global crypto trader payment habits – each Swede made an average of 461.5 digital payments in 2018. This puts the Scandinavian country ahead of the USA for the first time.

While the Swedish population is increasingly turning its back on cash, the Swedish government is dealing with the political and economic issues that arise automatically when the only legal means of payment is abolished. In Sweden, as in most countries, cash is the only currency that must be accepted.

Cash struck

The debate about the consequences of a cashless society has become more explosive with Riksbank board member Skingsley’s statement that the entire use of cash will probably come to a standstill in three to five years.

As Reuters reported on 4 December, the Swedish central bank does not want to abolish cash, but if its use were to decline at a similar pace as before, there would soon be hardly any companies that accept cash.

Now the question is: How does a society deal with it? There are a few ideas in Sweden. One of them is the establishment of a state digital currency, the e-krona. Bitcoin maximists should not, of course, make any leaps in the direction of a state digital currency.

On the other hand, it is currently unrealistic for central banks to voluntarily give up their monopoly on money creation. Finally, it offers the possibility to react flexibly to exogenous shocks such as recessions through the use of certain monetary policy measures. Cecilia Skingsley is therefore sceptical that the answer to the disappearance of cash could be crypto currencies like Bitcoin. However, it is aware of the competition from crypto currencies:

“If we do nothing, we look to a future in which money will be privatized.”

According to Skingsley, digital central bank money offers attractive opportunities to improve the effectiveness of monetary policy measures. As the Riksbank writes in a report on e-krona, the digital central bank currency could fundamentally change the central bank’s core business. For example, the central bank could issue the e-krona directly to citizens, so there is no longer any need for the commercial banks to mediate. A system change with far-reaching implications for the financial sector.

The future of crypto currencies such as Bitcoin therefore depends not least on how successfully governments and central banks launch their own competing products. The interesting thing is that the result can hardly be anticipated at this point, because real currency competition such as that always demanded by the Austrian School of Economics has not yet existed in the history of money.

The fact that many see Bitcoin’s use case in providing precisely this type of competition makes dealing with the No. 1 crypto currency such an exciting undertaking.

For those interested: We have summarized the macroeconomic differences between the creation of Fiat money and Bitcoin Mining here.

Well thought, bad done? – Coinbase wants to offer the news spy customers more decentralisation

The Coinbase crypto exchange researches blockchain-based identity management. According to Coindesk, a team of 17 is working on the development of a decentralized app (dApp) that will give Coinbase customers more control over personal data. However, the implementation is still lacking.

An all too well-known battle cry of the Blockchain enthusiasts is “Be in possession of your own data”.

Identity management is and remains the news spy case for blockchain technology

Personal data is no longer stored as usual on central company servers, but remains on a blockchain and is thus effectively under the news spy own control. The advantage: On the one hand, the companies cannot make a mess of the news spy data and on the other hand, data theft or loss is largely excluded. In short: The single point of failure is eliminated.

Now Coinbase is also researching such a blockchain solution. As Coinbase manager and head of the 17-member task force, B Byrne, told Coindesk, the team first wants to identify in which areas more decentralization is desired.

The Bitcoin exchange recently asked a small number of its customers about the dApps they were using.

“I look at dApps and which of our customers uses which dApps. That’s probably a good indicator of what kind of activities [our customers] want to do on an on-chain basis, Byrne told Coindesk.

KYC in a different way

A possible application case for more decentralization in Coinbase IT is the storage of KYC data (“Know Your Customer”). This could considerably simplify the registration processes for the various Coinbase products and grant more customers access to the Exchange.

At the same time, however, the US crypto exchange is realistic. The decentralized identity management via blockchain is not an egg-laying wool milk sow. Although there are interesting areas in which an application seems to make sense, the company does not want to invest large sums in development, according to the report.

Byrne says that, in all honesty, a complete decentralization of customer data is hardly compatible with the regulatory requirements of the tax authorities.

So it remains with the focus team and the credo: Somewhere there is already a meaningful application case for the blockchain technology.