A while back, I'd experimented with the liquified (assuming 'fractionated') version of coconut oil as a skin emollient/moisturizer. It came as a clear liquid (at room temperature), which I found at the drug store. I intended it mostly for my hands, but I also put a little bit on my face. By the afternoon, I was noticing the little bit of coconut oil left in my moustache, i.e., directly under my nose, was starting to SMELL PRETTY FUNKY. Not like fresh coconut anymore, but something beginning to approximate the smell of dirty laundry. I couldn't wash that stuff off my face soon enough.
Some have claimed coconut oil doesn't go rancid. But the little 'experiment' directly under my nose seemed to prove otherwise. Since then, it's been a no-brainer to me that I'll never use it on my knives. It may or may not do any harm to them, but I don't like the thought of that stuff going 'stinky' on one of my favorite knives.
What little oiling my knives ever need is handled with no worries, using a little bit of mineral oil.