Monday, 9 January 2017

Analysis of OneCoin blockchain - Part 6: Buy/Sell orders via Xcoinx Exchange

Summary of Conclusions
  1. Dr Ruja Ignatova lied when she said that all transactions that are done by OneCoin members are visible in the Blockchain and can be traced from member to member.
  2. None of the orders executed via the Xcoinx Exchange we investigated is visible in the Blockchain explorer in the onelife.eu back-office.
  3. This is conclusive proof that the Blockchain is incomplete (if there is a real Blockchain at all). An incomplete blockchain is useless by definition.

NB: the meaning and consistency of the Blockchain and Transaction data which are visible, will be the subject of a separate investigation.

A. Objective and Procedure
DISCLAIMER: the authors of this article have tried to execute an objective investigation. None of the data have been manipulated.

The complete procedure is step by step reproducible by anybody with a OneLife account.

The aim of this analysis is as follows:
  1. Check if Transactions for Buy and Sell orders, which are executed via the Xcoinx exchange on www.xcoinx.com, are visible in  the "Blockchain", which is visible on the www.onelife.eu backend web.
  2. Check the consistency of these data with information presented by the OneCoin company on the www.onecoin.eu website.
  3. Check the consistency of these data with information provided by self-proclaimed cryptocurrency expert and OneCoin Founder and Visionary Dr Ruja Ignatova.
A.1. Information supplied by the OneCoin company
During an interview with Pehr Karlsson and Udo Deppisch, Ruja Ignatova gave the following answer to the question "What is the blockchain?" (Source: YouTube: Exclusive interview with Dr. Ruja Ignatova, PART I, May 2016)
  • Pehr Karlsson: What is the blockchain?
  • Ruja Ignatova: Well in the blockchain, Pehr, it is something that makes cryptocurrency very very transparent and a bit more tangible. So what you can see in the blockchain is all the transactions that are done by OneCoin members. So if somebody trades a coin, if somebody transfers a coin to another one, you see this transaction in the blockchain and all transactions are in this blockchain. So it's like a ledger where we record all transactions.
  • PK: So it means we can trace every transaction, from me to you, to him?
  • RI: Exactly, exactly. And the second thing that you can check in the blockchain is, every coin mined is recorded in the blockchain. So and this is also what our auditor audits every month, that all transactions that are done are really collected in the blockchain and that all coins mined are really also recorded in the blockchain.

The Blockchain info page contains the following statements with regard to the OneCoin blockchain:
  • OneCoin’s blockchain consists of each transaction ever performed in OneCoin.
  • The blockchain is based on protocols that authenticate, validate and store information in consistent, unbroken sequences that make the system safer by eliminating any attempts of fraud, duplicity and forgery.
The Xcoinx Terms and Conditions (version 10 November 2016) contain this text:
  • The Exchange Service / Transactions
  • When buying or selling cryptocurrencies through the Exchange Service, users are buying from, or selling to each other directly. The Company does not act as an intermediary or marketplace between other buyers and sellers of cryptocurrencies.
A.2. Procedure
We used the following procedure during this analysis:
  1. Because we did not have a OneCoin account with which we could execute Buy or Sell orders ourselves, we searched for Xcoinx exchange screenshots published by IMAs (Independent Marketing Associates) on Facebook, YouTube and other websites. 
  2. Find at least four sources with screenshots of Xcoinx orders with status "EXECUTED" which appear to be reliable (i.e. contain genuine, non- manipulated screenshots).
  3. Check if at least one Transaction with the same Execution date and Amount of Onecoins is visible in the blockchain explorer on https://www.onecoin.eu/en/blockchain.
B. Fact Finding and Analysis
We found four reliable sources on Facebook, YouTube and a blog, which was sufficient for the purpose of this investigation.

The following Observations were made during the analysis:
  1. The majority of Buy or Sell orders expire, i.e. are not executed at all.
  2. None of the orders with status "EXECUTED" we checked, is visible in the Blockchain explorer.
NB: if we would have found any "matching orders" during this investigation (we didn't), we would have published them. This would not change the conclusions however, because an incomplete blockchain is useless by definition.

Source 1 - http://onecoinexchange.blogspot.nl/
The author of this OneCoinExchange Blog has started an interesting experiment by buying a Pro Trader Package with 10,000 "promotional tokens" for EUR 1,100 and testing if it is possible to sell Onecoins via the internal exchange. This OneLife IMA places a Sell order each working day (the Xcoinx exchange is closed during weekends), during the first month for the "Market Price".

The first 13 Sell orders at Market Price expired. On 20 December, after 25 days of trading, the first order was executed. Until the last business day of 2016, Friday 30 december 2016, the results were as follows:

27 orders, of which:
  • 19 expired
  • 4 executed
  • 5 pending

This is a screenshot of the results:

NB: The blog author confirmed that for orders with status "EXECUTED" the "Expires" column in fact shows the Execution Date, and that the status change happens between 10 am and 02 pm GMT.

In the Blockchain explorer we searched for the following transactions:
       Quantity Execution Date
       4 ONE 19/12/2016
       4 ONE 21/12/2016
       4 ONE 28/12/2016
       4 ONE 29/12/2016

None of these Transactions is present in the Blockchain explorer. 

The evidence for this finding is in three files with Blockchain and Transaction data. These files were generated by automating the process of "browsing" through the Blockchain via the "next block(s)" hyperlink with the help of a Firefox plugin, Selenium IDE (see also article Analysis of OneCoin blockchain - Part 5: Automatic Onecoin buy orders (mining) ).

NB: a transaction for 4 OneCoins is recognizable by a " 4.00000000 ONE" string value in the files.

All Transactions with Execution date 19/12/2016 GMT/UTCOnecoin_Blockchain_Hashes_Transactions_110107-111631_19Dec2016_v10.txt
All Transactions with Execution date 21/12/2016 GMT/UTCOnecoin_Blockchain_Hashes_Transactions_112918_114439_21Dec2016_v10.txt
All Transactions with Execution date 28/12/2016 and 29/12/2016 GMT/UTCOnecoin_Blockchain_Hashes_Transactions_122751_125681_28-29Dec2016_v10.txt


Source 2 - IMA Lee Oshea on FaceBook
On 13 December 2016 IMA Lee Oshea posted a screenshot with two Xcoinx orders with status EXECUTED:

In the Blockchain explorer we searched for the following transactions:
      QuantityExecution Date
      43 ONE13/12/2016
      5 ONE19/12/2016

None of these Transactions is present in the Blockchain explorer.

The evidence for this finding is in two files with Blockchain and Transaction data:
All Transactions with Execution date 13/12/2016 GMT/UTCOnecoin_Blockchain_Hashes_Transactions_101684_103206_13Dec2016_v10.txt
All Transactions with Execution date 19/12/2016 GMT/UTC (same file as above):Onecoin_Blockchain_Hashes_Transactions_110107-111631_19Dec2016_v10.txt


Source 3 - IMA Volker Helm on FaceBook 
On 24 November 2016 Volker Helm writes in FaceBook group "OC-Team Deutschand" that Buy and Sell orders work, however with some patience. The screenshot contains three (quite big) orders with status EXECUTED:

In the Blockchain explorer we searched for the following transactions:
      QuantityExecution Date
      178 ONE21/12/2016
      514 ONE25/12/2016
      246 ONE28/12/2016

None of these Transactions is present in the Blockchain explorer.

The evidence for this finding is in three files with Blockchain and Transaction data:
All Transactions with Execution date 21/11/2016 GMT/UTCOnecoin_Blockchain_Hashes_Transactions_070794_072314_21Nov2016_v10.txt
All Transactions with Execution date 25/11/2016 GMT/UTCOnecoin_Blockchain_Hashes_Transactions_076405_077924_25Nov2016_v10.txt
All Transactions with Execution date 28/11/2016Onecoin_Blockchain_Hashes_Transactions_080617_082139_28Nov2016_v10.txt


Source 4 - IMA "TheTimurator" on YouTube
In a video published by TheTimurator on 1 December 2016 a number of executed orders are visible. He uses four different accounts, we show only three of them because the orders on two of the accounts are identical.




In the Blockchain explorer we searched for the following transactions:
      QuantityExecution Date
      5 ONE25/11/2016
      9 ONE25/11/2016
      17 ONE25/11/2016
      5 ONE28/11/2016
      9 ONE28/11/2016
      22 ONE28/11/2016
      6 ONE30/11/2016
      9 ONE30/11/2016

None of these Transactions is present in the Blockchain explorer.

The evidence for this finding is in three files with Blockchain and Transaction data.
All Transactions with Execution date 25/11/2016 GMT/UTC (same file as above)Onecoin_Blockchain_Hashes_Transactions_076405_077924_25Nov2016_v10.txt
All Transactions with Execution date 28/11/2016 GMT/UTC (same file as above)Onecoin_Blockchain_Hashes_Transactions_080617_082139_28Nov2016_v10.txt
All Transactions with Execution date 30/11/2016 GMT/UTCOnecoin_Blockchain_Hashes_Transactions_083426_084949_30Nov2016_v10.txt


Hyperlinks to first Blocks in the files
To facilitate the verification of the data we provided as evidence, this table contains the direct hyperlinks to the Blockchain explorer of the first Block in each file (log in on onelife.eu required).
NB: each file starts with the Blocks and Transactions of the last hour of the previous day.

DateBlock HeightHash / Hyperlink
21 Nov 201670794a44f59b2f1a197b68a0f1f42b8052e96438d6c61571805e250140d6f577bd443
25 Nov 2016764059bec0ec7769cf307bba064dcb8ba8c603a94c525f1936312ab009ce7bde1b10d
28 Nov 2016806178b9ca6db426b0c181878afb7671aa2fbf1ab2b2dc9ba69ef57092abec31c7b80
30 Nov 2016834268795a15ee7f064437b73b341aba70722bf402738c891c80547f35660ec823b6d
13 Dec 2016101684cd7e9464b939861545aa7b0310678c01544538cbd7dbe38e852906d113c09cd5
19 Dec 2016110107e91399e263354c0eaa8382f17de83d66c32bf4516d21b434b72f4f29cd1b7b32
21 Dec 2016112918ab8b1c4dec3ffc99acb4900569c9bde1640512bd9a4d9afab9d349207169e081
28/29 Dec 2016122751d501b20b658050c0bd87887f481079d4619cf26270b9b0d477306d925554fa90

C. Conclusions
  1. Dr Ruja Ignatova lied when she said that all transactions that are done by OneCoin members are visible in the Blockchain and can be traced from member to member.
  2. None of the orders executed via the Xcoinx Exchange we investigated is visible in the Blockchain explorer in the onelife.eu back-office.
  3. This is conclusive proof that the Blockchain is incomplete (if there is a real Blockchain at all). An incomplete blockchain is useless by definition.

NB: the meaning and consistency of the Blockchain and Transaction data which are visible, will be the subject of a separate investigation.

5 comments:

deckfromacard said...

I really like the fact you used data shown by OneCoin-promoting IMAs as the data source. The really cannot deny the validity of their own promotion, can they? :-D

OneCoinOneLifeFacts said...

I would not trust every IMA, but I had confidence in the screenshots of these four indeed.

The bulgarian blockchain massacre said...

2 thumbs up

I would really appreciate it if you could summarize your findings in a short, "simply-to-understand" form (text-only), so that i could forward it to my onecoin-victim friend who recently invested a substantial amount of money into a onecoin package, of which most certainly every single cent will have gone straight into the pockets of these "scumbags millionaires". Of course ALL of the money he has already invested is lost for him, but i want to prevent him from investing even more money.

Thanks again for your excellent investigations and findings!

The bulgarian blockchain massacre said...

Actually i came to the conclusion myself that my friend is lost anyway. I think, once brainwashed, even the most obvious facts (as your findings are) that the blockchain is most certainly no blockchain at all but simply a pile of nonsense will not change anything. I really hope these people behind it will in the end get what they deserve.

OneCoinOneLifeFacts said...

I'm currently working on two more articles about the "blockchain" and the OneLife/OneCoin "ecosystem".
After that I will make a summary indeed. If your friend is lost anyway, maybe some other people can use it to their advantage.