Home Coins Bitcoin (BTC) Despite Warnings from Regulators, the Ethereum Fueled Pyramid Scheme Forsage Thrives

Despite Warnings from Regulators, the Ethereum Fueled Pyramid Scheme Forsage Thrives

1597272304 211 Bitcoin and Gold Correlation Reaches Record High 70 Bolstering BTCs

While Ethereum has seen a number of benefits from the decentralized finance (defi) movement and initial coin offerings (ICOs), more recently individuals have been leveraging ether for pyramid schemes and matrix cycler programs. One particular scheme crypto enthusiasts are discussing these days is the gifting pyramid scheme called Forsage.

Following the demise of a number of Onecoin masterminds and the recent charges against Plustoken and Wotoken members, another massive pyramid scheme has been raking in funds. The project is called Forsage and it has attracted a lot of ethereum deposits since it launched in February 2020.

According to the web portal dappstats.com, Forsage is considered “high risk,” but still managed to see $2.8 million worth of ethereum (ETH) in volume during the last seven days. Essentially, Forsage is a matrix cycler program that claims to offer users the ability to make ‘passive income’ by simply signing up more partners.

1599782718 497 Despite Warnings from Regulators the Ethereum Fueled Pyramid Scheme Forsage
Dappstats.com and Etherscan call the Forsage contract a “high risk” investment.

At the time of writing, the Forsage website tells the visitor they can invest 0.05 ETH ($18.34) to join, and the more people they sign up, the more money they can allegedly make. The Forsage website cunningly says the operation is a “simple relationship.”

“The more partners, the more of the money collected,” the Forsage FAQ notes. In order to complete the first round of the matrix cycle, the investor must get three referrals in on the Forsage scheme, and from here the ladder continues.

The page also gives an example of one user called “ID 8679” who is allegedly making over $700k, and soon will be a “millionaire.”

However, the Philippines based matrix cycler Forsage is considered a Ponzi scam that could end in a matter of no time. A few crypto proponents have been speculating on the Forsage project and how it has attracted a lot of ETH since it launched.

Despite Warnings from Regulators the Ethereum Fueled Pyramid Scheme Forsage
Chart shared on Twitter by Edward Morra shows the ETH sent to Forsage since it’s inception.

Primitive Ventures founding partner Dovey Wan recently discussed the Forsage pyramid scheme on Twitter. Wan said a lot of the Ethereum network’s liveliness stems from Forsage.

“The ETH price floor is not from a few foodcoin scams or a potential defi vault explosion, sadly is from the liveness of Forsage, the ongoing ETH version Plustoken,” Wan tweeted. “I just checked its activity which is still thriving, feeling comfy,” she added.

1599782718 32 Despite Warnings from Regulators the Ethereum Fueled Pyramid Scheme Forsage
The Philippines Securities and Exchange Commission (SEC) published a warning about Forsage on July 1, 2020.

Edward Morra responded to Wan’s tweet and also shared a graph showing the amount of ETH sent to Forsage since it’s inception. Morra’s chart shows that the deposits have been slowing down, which could mean an exit could be in the cards very soon.

“It’s pretty scary considering the amount of ETH sent is decreasing for some sustained time now,” Morra wrote. “Meaning this Ponzi will soon stop functioning like all Ponzis.”

1599782718 270 Despite Warnings from Regulators the Ethereum Fueled Pyramid Scheme Forsage
Deposits are still flowing into the Forsage matrix scheme. The screenshot was taken on September 10, 2020.

Additionally, the Forsage scheme has continued after the Philippines Securities and Exchange Commission (SEC) published a warning about Forsage.

“Forsage, which is headed by Lado Okhotnikov, is not duly registered with the SEC and lacks the necessary license to solicit, accept or take investments from the public or issue investment contracts and other forms of securities,” the warning notes.

The SEC letter highlights:

Active income generated from the compensation plans depends on the number of referrals and/or membership fees gathered while passive income is acquired through spillovers. Aside from lacking the necessary licenses, Forsage’s compensation plan resembles a Ponzi scheme, where investors are paid using the contribution of new investors, according to the SEC.

1595889402 943 Americans to Buy Bitcoin With Their Second Stimulus Checks After

In a Medium post written by Badmlm the writer notes that all Forsage does is offer an ethereum-based gifting pyramid scheme disguised as “crowdfunding.”

“Pay ethereum to join for the ability to refer other suckers, to get paid ethereum so they can do the same,” the review details.

“People think it’s all legit and some kind of revolutionary way to earn Ethereum daily, because it’s handled with smart contracts on the Ethereum blockchain. Don’t be fooled by all the smoke and mirrors, it’s still an illegal pyramid scheme,” Badmlm concludes.

What do you think about the Forsage pyramid scheme? Let us know what you think about this subject in the comments below.

Tags in this story
Badmlm, Dovey Wan, Edward Morra, ETH, ether, Ethereum, Forsage, Lado Okhotnikov, matrix cycler, matrix cycler Forsage, MLM, Onecoin, Phillipines SEC, Plustoken, Ponzi scam, Pyramid Scheme, Scam, Wotoken

Image Credits: Shutterstock, Pixabay, Wiki Commons, Etherscan, SEC, Edward Morra, Twitter, Dappstats.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
USD - United States Dollar

Most Popular

Brazen Nigerian Crypto Scam Inksnation Still Operational Three Months After Regulator Warning

One of Nigeria’s most brazen crypto scams, Inksnation remains operational and still invites new investors some three months after the country’s Securities...

Former government contractor avoids jail for mining crypto at work

A former government contractor in Australia who mined crypto using state-owned supercomputers has avoided jail time. According to The Sydney Morning Herald, Jonathan Khoo...

Party at Vitalik’s House? For DeFi, it’s Do-or-Die

Ethereum gas prices have set new records, with single DeFi transactions costing over $10 in fees. High fees are the result of...

The battle between DeFi, CeFi and the old guard

We aren’t taught real economics in school. We learn, instead, voodoo economics. For example, rarely — if ever — do professors present us with...
Bitcoin (BTC) $ 10,843.43
Ethereum (ETH) $ 369.08
XRP (XRP) $ 0.243613
Tether (USDT) $ 0.999416
Bitcoin Cash (BCH) $ 223.33
Bitcoin SV (BSV) $ 151.51
Litecoin (LTC) $ 46.66
EOS (EOS) $ 2.65
Binance Coin (BNB) $ 25.80
OKB (OKB) $ 6.10
Tezos (XTZ) $ 2.24
LEO Token (LEO) $ 1.24
Cardano (ADA) $ 0.088506
Monero (XMR) $ 91.55
Stellar (XLM) $ 0.076240
Chainlink (LINK) $ 9.84
Huobi Token (HT) $ 4.75
TRON (TRX) $ 0.026626
USD Coin (USDC) $ 1.00
Dash (DASH) $ 69.87
NEO (NEO) $ 23.53
IOTA (MIOTA) $ 0.257800
NEM (XEM) $ 0.108801
Zcash (ZEC) $ 55.92
Maker (MKR) $ 472.21
Paxos Standard (PAX) $ 1.00
Ethereum Classic (ETC) $ 5.06
VeChain (VET) $ 0.014031
TrueUSD (TUSD) $ 1.00
FTX Token (FTT) $ 3.70
KuCoin Shares (KCS) $ 1.15
Waves (WAVES) $ 2.43