Crypto project OneCoin was caught up in rumors that it represents a ‘’hybrid Ponzi-pyramid scheme’’ and therefore a scam according to the reports reaching our altcoin news today.
As the reports noted, OneCoin purportedly a Ponzi scheme project which managed to raise millions of dollars from worldwide investors. The investors were reportedly promised big returns and minimal risks. As the investigation showed later by the United States, the project’s founders generated about 3.535 billion euros in revenue.
Early in April, a church in the nation of Samoa was in the middle of scrutiny after some of the ministers invited the founders of the crypto project OneCoin to speak at a conference. Samoa’s central bank later banned any crypto activities and activities involving the scheme but the representatives approached the Samoa Worship Centre successfully and launched their investment products.
Per the latest cryptocurrency news reports, the Samoa central bank investigated the company behind the crypto project. OneCoin sent a letter to a Samoa Observer where the claims of being a scam were denied. The company also denied laundering funds through New Zealand and denied the allegations that the organization is a Ponzi scheme.
The company also explained that it is a ‘’centralized, closed source cryptocurrency. The closed system has strict AML (Anti-Money Laundering) and CFT (Combating the Financing of Terrorism) policies as well as KYC (know-your-customer) implementation.’’
The crypto project OneCoin argued that the criteria that exclude the company from being a Ponzi scheme are that:
“By accepting the contract, the user becomes an independent, self-employed business owner. Let it be clear that neither OneCoin nor OneLife companies have organization, representation or employees in Samoa and New Zealand. No one has the authority to act or make statements on the company’s behalf in Samoa and New Zealand.”
As it was previously reported in May this year, the former investor in the OneCoin company Christine Grablis is now suing the company for Fraud. Christine made clear that she will be seeking damages and will pursue a class action suit. She also aims to represent all of the investors that were reportedly defrauded by the crypto project-OneCoin.
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“…We tried to increase the volume but can’t do it through the dashboard and were told we needed to email compliance.’’The debacle brought BitPay under fire due to the massive criticism which frequently engulfs the exchange. The prolonged bureaucracy compounded by another scandal including transaction fees which have led to frequent calls for business to open the source alternative payment processor and the logic as explained on Twitter pointed out in the comments on Amazon Watch’s difficulties is because Bitcoin is a free and open payment system and there are third parties that verify the transactions arbitrarily in order for the cryptocurrency to serve its purpose:
“…You don’t need (BitPay) to reject your transactions when you can verify them yourselves for free.’’As noted in the latest cryptocurrency news, BitPay’s difficulties have had a long history since 2017 even when the executives opted to support the controversial SeGwit2x bitcoins scaling proposal which eventually led for the crypto wallet Trezor to ditch the company. Amazon watch even stated that it would look into using BTCPay an alternative open-source option which could copy that similar one of the travel agent CheapAir from 2018. The backlash over the previous actions of the exchange led to many customers closing their accounts and invoices.
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"Wall Street ain't what it used to be. The first 15 years I was on Wall Street, it was fun. I was very fortunate, I started in the CDS market which feels a lot like crypto. Here you have a lot of financial innovation, a lot of trading...It feels very much like that, there's a lot of energy and enthusiasm about this progress and where it's going."Another example is the Morgan Stanley alum Marcus Swanepoel who told the Financial Times:
"Over the past two years we have seen evidence building that bitcoin is an uncorrelated asset class so it makes sense to add it to portfolios."The trend is growing towards more portfolio managers coming in including what Minier says is mavericks and savvy hedge funds entering the crypto space. The digital currency investment company Greyscale investments also saw its assets under management balloon to $2.5 billion and most of which originated from big investors including hotshot hedge funds. The Kraken Pro trader stated:
"I think it's going to be one of those things in a blink that everybody is going to start chasing it.’’With the upcoming launch of the Bakkt bitcoin futures exchange, more traders could begin to feel the way that Minier does and Kraken has been experiencing an uptick with the institutional demand for crypto but he admitted it was too slow. In the meantime, the rival crypto exchange Coinbase based in San Francisco revealed that hundreds of millions of dollars in institutional capital is coming straight off the sidelines into cryptocurrencies a week as we noted previously in the latest cryptocurrency news. They sure can’t find these types of returns in any other asset class with rock-bottom interest rates and the equities mimicking bond yields. Bitcoin in the meantime has generated high returns of more than 150 percent year to date.
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