Slovenian consumer agency issues scam alert on Onecoin

scam alert

After Nigeria, Germany, Italy and a host of other countries, Slovenia has also issued a scam alert on OneCoin pyramid scheme marketed as a genuine cryptocurrency.

In an official statement, the Slovenian Consumer Association said OneCoin is been marketed as an investment opportunity that it is not.

It also warned its citizens to be wary of getting confused that OneCoin is similar to Bitcoin, a genuine cryptocurrency.

See the statement below (P.S. translated to from Slovenian)

Bitcoin, which we have already written, in recent years, followed by a multitude of new, more or less similar to virtual currencies. Generally speaking, it is an attempt to create a currency that will be independent of the central banks.

Our attention attracted some new virtual currency, which they advertise as an attractive business opportunity for a big return. A characteristic of such a solution, for example, `onecoin’, is that unlike Bitcoin managed centrally and their value can not be estimated, because they are not traded on the open market at the same time with them often (still) can not buy it nothing. Such currency, for example, intensely marketed through educational packages for trading on social networks, seminars and workshops around their founders are creating a real cult of personality. The option to purchase is generally possible to obtain the invitation of an existing member or sponsor. This condition is associated with the operation of the currency on the principle of network marketing, in which existing members serving with the recruitment of new members; in a similar manner for example. It is also selling cosmetic products through Amway or Herbalife nutritional supplements.

Use caution. It is important to know that providers of virtual currency as opposed to the traditional financial products and payment methods are not registered or under the control of supervisors markets. Supervisors markets in recent years published a number of caveats that should be taken when buying virtual currencies cautious. The useful value of these currencies for shopping can be very limited, since no trader is obliged to adopt, while payment may undermine the very large fluctuations in their value. Also the safety of operations at risk due to hacker attacks, place and systemic shocks.

If someone recommend the purchase digital currencies, such as “ onecoin’ or swisscoin’, you should know that this is probably also a financial interest. Tenders based on a system of `invite friends and družino’, closely resembling a pyramid scheme. When these have profits only those at the very top of the hierarchy, as a rule at the expense of other participants.

We do not recommend that you decide to purchase virtual currency as an investment opportunity, because you threatened that you will lose the entire amount invested.

Various countries, financial authorities and regulators are ringing scam alerts on OneCoin and other pseudo-cryptocurrencies that are been peddled as investment opportunities to unsuspecting victims who are only been conned of their money paid as payment for buying packages.

Many of these schemes like OneCoin and SWissCoin are merely scams with no correlation to digital currencies. There investors cannot openly buy and sell their digital currencies in other exchanges except in the pyramid scheme where old investors are been paid with new members buying packages.

Last week, OneCoin stopped all withdrawals on the pretext that one of its subsidiaries is going on initial public offering. A claim that cannot be verified as authentic.

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