Slovenian consumer association issues OneCoin warning
In contrast to the speed of which European authorities are investigating the scheme, OneCoin warnings from consumer protection agencies continue to roll in.
The latest is a January 25th warning from Slovenia’s Consumer Association.
According to their website, the Slovenian Consumer Association is ‘an independent, non-profit organization that Slovenian consumers to better and safer shopping‘.
The association observes that locally, OneCoin is advertised as ‘an attractive business opportunity with a big return‘.
As per BehindMLM’s OneCoin review, affiliate investors sign up and deposit funds with OneCoin on the expectation of a ROI. The ROI is set by OneCoin and only obtainable through their internal exchange.
The ROI, exclusively paid out by OneCoin through their internal exchange, is funded by subsequent affiliate investment. Earlier this month OneCoin suspended internal exchange withdrawals altogether.
Emphasizing a distinction between legitimate cryptocurrencies and OneCoin, the Consumer Association warns
Onecoin is unlike Bitcoin (in that it is) managed centrally. Its value can not be estimated, because (OneCoin is) not traded on the open market (and) at nothing can be bought with it.
The association goes on to warn consumers that OneCoin is marketed on a “cult of personality”.
SwissCoin also gets a mention, with the association claiming both OneCoin and SwissCoin ‘closely resemble a pyramid scheme‘.
If someone recommends the purchase of digital currencies, such as OneCoin or SwissCoin, you should know they probably also have a financial interest in your purchase.
Business models based on a system of “invite friends and family” closely resemble a pyramid scheme. As a rule only those at the very top of the hierarchy earn a profit, at the expense of other participants.
SwissCoin is essentially a clone of OneCoin’s Ponzi points business model.