Second German consumer agency issues OneCoin warning
In an interview with German radio station SR3, Thomas Beutler of Saarland’s Consumer Protection Center has warned against OneCoin investment.
On his Twitter profile, Beutler cites himself as a financial expert with Verbraucherzentrale Saarland.
Not surprisingly, Beutler’s concerns about OneCoin stem from its Ponzi pyramid business model.
Anyone who invests in the OneCoin digital currency OneCoin must advertise for new investors.
As a result, recruitment commissions are paid to ensure a monthly income for the promoters. Investors are also hoping for high capital appreciation (on their OneCoins).
OneCoin’s digital currency can not be traded anywhere. The system works only as long as new affiliates are recruited and no one is recovering his money.
This will not work in the long term.
Beutler and Verbraucherzentrale Saarland see OneCoin investment as part of an unregulated gray capital market.
Due to low interest rates, the willingness to invest in risky money investments is increasing.
The unregulated gray capital market is non-transparent and unsuited for investment.
Verbraucherzentrale Saarland is the second German consumer organization to issue a warning against investing in OneCoin. Last August Stiftung Warentest warned OneCoin was both “risky and dubious“.
Alexa estimate Germany is currently the fourth largest source of traffic to the OneCoin website.