Public Warning Launched by Financial Markets Authority (FMA) Against HyperFund / HyperVerse
The FMA has made it very clear that HyperFund has no license that grants it to offer its financial products to the investment community in New Zealand. The FCA had launched a warning against HyperFund back in March of 2021. On the other hand, the GFSC has recently posted a warning...
The Financial Markets Authority of New Zealand has gone ahead reposting a warning it had issued back in September. The warning re-issued by the FMA is related to HyperFund. In the warning, the FMA has alerted the entire investment community in New Zealand to remain cautious of the operator of HyperFund.
The regulatory authority from New Zealand has warned the entire investment community in New Zealand to remain alert and cautious with HyperFund. According to the FMA, it is highly concerned that the operator of the HyperFund might be involved in a scam.
While sharing the above concerns, the Financial Market Authority has shared its perception about HyperFund. The regulator has claimed that it has an impression that HypberFund might be involved in operating a scam.
Reason to Believe HyperFund is running a Scam
The Financial Markets Authority has also provided more information as to what has led it to believe that HyperFund is operating a scam. The first major concern the regulator has against HyperFund is the model that it is following.
According to the Financial Markets Authority, the operator of the HyperFund is currently following the MLM model. The abbreviation “MLM” stands for Multi-Level Marketing, which means that there are several ways for the operator to publicize the services. On top of that, the model would be involved in offering users several opportunities of making investments and benefit from them in return.
The Financial Markets Authority has issued a statement that the multiple opportunities being offered by the operator of HyperFund seem to be very unrealistic. The major reason behind the concerns for the FMA is that majority of the investment opportunities offered by HyperFund are passive with passive returns.
Affiliation Program Offered by HyperFund
The Financial Markets Authority has announced that in order to expand its network all over New Zealand, HyperFund has even launched its affiliation program in the country. This way, the operator is aiming to make several investors in New Zealand its own affiliates. These affiliates will then be working independently on behalf of HyperFund to bring more investors/users to HyperFunds’ website platform.
This goes to show that the operating entity behind HyperFund is aiming to bring as many investors onboard as possible.
Authorization of Operating in New Zealand
The Financial Markets Authority has also confirmed that HyperFund is highly insecure to become part of. According to the FMA, HyperFund is neither a licensed nor registered entity in New Zealand. This means that the particular operator is involved in offering its services in New Zealand without any authorization from the regulators in the country.
The FMA has made it very clear that HyperFund has no license that grants it to offer its financial products to the investment community in New Zealand. Therefore, the services being offered by HyperFund are unregulated and full of risks to deal with.
This is the main reason why the FMA has issued a warning against HyperFund and has intimated all the investors in New Zealand to stay alert and cautious. Investors must remain very vigilant and cautious when dealing with HyperFund as there are very high chances of the platform operating a scam.
Warnings Issued by Other Regulators
The FMA has also cautioned that it is not the only regulatory authority that has issued a warning against HyperFund. The Financial Conduct Authority (FCA) of the United Kingdom and the Guernsey Financial Services Commission (GFSC) have both issued a warning against HyperFund.
The FCA had launched a warning against HyperFund back in March of 2021. On the other hand, the GFSC has recently posted a warning against the same operator.
Services Offered by HyperFund
HyperFund seems to portray itself as a blockchain-based metaverse gaming and virtual reality offering platform. The platform claims it is set to offer users virtual experience, tokenized items, and decentralized capital among many more features.
The platform claims it is to offer users the capability of investing in tokenized real-world ETFs, contracts, options, and stocks.
As of now, the platform is reachable through two website addresses. The first address is thehyperfund.com and the second address is thehyperverse.net.