OneCoin have been making all sorts of announcements to their affiliates over the last few weeks, with their efforts not going unnoticed by regulators.
Hungary appear to be the first country to have investigated the scheme, concluding that a public warning needed to be issued.
In the investment warning, dated June 10th, the Bank of Hungary identifies OneCoin’ as a “virtual pyramid scheme”:
New trading platforms, similar to Bitcoin virtual currencies – such as OneCoin – combine investment and trade, thus making it theoretically possible to market to prospective investors.
In reality however, the virtual marketplace of the pyramid is maintained by the owner under exclusive jurisdiction, and can only be traded through via a closed “stock market”.
OneCoin have tried to create the illusion that their OneCoin Ponzi points will be traded by the general public, but as of yet only OneCoin affiliates (investors) are the only ones interested in the cryptocurrency.
And they’re only interested in it because of the attached
Ponzi points business model
OneCoin uses.
Specifically pertaining to OneCoin’s compensation plan, the Bank of Hungary conclude the same:
(OneCoin) promises existing investors high yields by recruiting by new participants. As they join early investors receive commission payments and the commission payout is increased.
Should new investment slow down or dry up completely, the scheme collapses.
The investment in such companies involves special risks, since these assets are not included in the regulatory framework and are typically outside the National Bank of Hungary (NBH) and the European Union’s supervisory jurisdiction.
In the event OneCoin collapses, investors are not protected by the National Deposit Insurance Fund nor the Investor Protection Fund.
The Bank of Hungary has repeatedly warned consumers that before investing, verify that the service provider has the correct permissions monitoring.
OneCoin of course
does not
have the required permissions.
Looking forward, OneCoin investors have recently began
advertising a US launch
on July 4th.
July the 4th of course is a public holiday in the US, with further details of the purported launch yet to emerge.
Should OneCoin formally enter the US and set up operations however, one imagines it won’t be long before the scheme pops up on the SEC’s regulatory radar.
🤖 Quick Answer
What warning did the Bank of Hungary issue regarding OneCoin?The Bank of Hungary issued a public investment warning on June 10th, identifying OneCoin as a "virtual pyramid scheme." The warning highlighted that while OneCoin presented itself as a Bitcoin-like virtual currency platform, it operated as a closed marketplace controlled exclusively by its owner, accessible only through a proprietary trading system designed to deceive prospective investors.
How did regulators classify OneCoin's business model?
Regulators classified OneCoin as a virtual pyramid scheme that combined investment and trading elements to attract investors. The Bank of Hungary determined that despite claims of operating like legitimate virtual currencies, OneCoin's marketplace was maintained under exclusive owner control with restricted access through a closed trading platform, lacking transparency and legitimate market mechanisms.
Why did Hungary become the first country to investigate OneCoin?
Hungary initiated the first regulatory investigation into OneCoin following numerous announcements
🔗 Related Articles
- FFST Group Review: “Placing orders” click-a-button Ponzi
- 30 Day Success Formula scammers convicted of fraud
- AdGoggle Review: Paid to click mobile ads
- KOK Play Review: KOK token 200% ROI Ponzi scheme
- ABA Marketing Review: Weird Russian crypto pyramid scheme