This is yet another fraud alert on OneCoin. Thomas Beutler of Saarland’s Consumer Protection Center in Germany has warned about dangers of investing OneCoin.
In an interview he issued to SR3, Thomas Beutler said:
The Consumer Center of the Saarland warns against investments on the gray capital market. Apparently, the region is currently promoting a digital currency called OneCoin, which works similar to a snowball system.
Anyone who invests in the digital currency OneCoin must advertise new buyers. As a result, commissions are charged to ensure a monthly income for the advertisers. Investors are also hoping for high capital appreciation.
Thomas Beutler from the Consumer Center of the Saarland sees this critically. He points out that the OneCoin digital currency can not be traded anywhere. The system works only as long as new buyers are found and no one is recovering his money. This could not work in the long term.
The consumer centers see that the money system is a snowballs system. OneCoin itself disputes this according to the data of the consumer center.
Consumer consultant Thomas Beutler notes that due to the low interest rates, the willingness to invest in risky money investments is increasing. It is precisely the unregulated gray capital market that is intransparent and unsuitable for investment. Whoever offered a product that would be sold with high sales commissions would primarily make money by themselves.
Many countries including Nigeria, Italy and many other central banks issued fraud alert on OneCoin and the investment risk it pose to unsuspecting citizens who might be hoodwinked by its affiliates to buy packages in order to invest the pyramid scheme.
OneCoin just like Afrocoin and SwissCoin are not real digital currencies because they do not have public blockchains. They are marketed as multi level marketing products with no value outside of the scheme.