The Bank of Hungary has send a warning against Crypto Currency like Bitcoin and OneCoin.
I have reached out to co-founder and CEO of OneCoin Dr. Ruja Ignatova who stated:
The Central bank draws attention that OneCoin – like Bitcoin is an investment with risks. As we all know high return potential and high risk go hand in hand, and for sure cryptocurrency or having your money in stocks is riskier than parking your money on a traditional savings account, which earns less than 0.5% interest p.a. We have seen Bitcoin show volatility and reach heights between 200 and 1200 USD.
The article below however does not say that OneCoin or Bitcoin are a pyramid scheme, but that early joiner make more money that late adapter.
OneCoin shows the same development and profit pattern as Bitcoin – early joiner join at a lower price – and as the assets climb in value due to higher demand, it is natural that the price climbs and people who join later a proven concept will have to pay a higher price for this.
Also the distribution model of the company- distributed by independent affiliates is not criticized.
As we agree with the Central Bank that OneCoin will go and be traded openly – we also have to remember that OneCoin is in the first step of its growth and development, with less than 200 Million coins mined out of 2.1 Billion – and opening the coin for merchants and public will be one of the most important steps in our future.
However we as a company take the concerns of our members and also other institutions. We have hired a reputable European lawyer, who will publish a legal opinion on the legality of our business model in Germany and Europe.
The OneCoin team remains extremely dedicated to make OneCoin the top cryptocurrency worldwide and thanks all its almost 400.000 affiliates for the trust and support. If you have any questions or comments contact [email protected]
OneCoin Dr.Ruja Ignatova Interview with auditor Deyan Dimitrov
Below is the Google translation of the Hungarian article:
The National Bank warns consumers on the Internet organized, making use of payment instruments used in a virtual popularity pyramid schemes are growing in importance. The trading of these instruments and the organizing institutions not supervised by the central bank, in case of the organizer's insolvency the home warranty does not cover compensation fund.
The virtual devices can be used to pay an increase in the popularity of the traditional low-yield investment schemes and consumers informálatlanságát appeared again taking advantage of the pyramid schemes operating reminder mechanisms products on the market.
In some constructions, new trading platforms, similar Bitcoin virtual instruments – such as the so-called OneCoin into – from investment to trade, and thus to make it theoretically possible to prospective investors. In reality, however, the virtual device output power of the pyramid itself is maintained by the organizer of the exclusive jurisdiction and can only be traded operated by the issuer closed stock market is possible.
The system promises high yields on the Internet organized by new entrants, more to come and receive commission payments from early entrants so that the commission rate can be increased with an additional payment. Previous press releases and reports, the central bank has drawn attention to the risks of Bitcoin.
The investment in such instruments involves special risks, since these assets are not included in the regulatory framework are typically outside the National Bank of Hungary (NBH) and the European Union's supervisory jurisdiction of the institutions of falling foreign companies and persons are issued.
In the event organizer's insolvency consumers no indemnify the investments nor the National Deposit Insurance Fund nor the Investor Protection Fund does not provide.
OneCoin corporate event in Dubai