Despite the warning issued by the Philippines SEC concerning the Forsage cryptocurrency project, it still continues its activity. The regulators from the Philippines denounced it as a potential Ponzi scheme though its founders assert that it’s a fully decentralized project.
There is supposedly a simple marketing Ponzi scheme beside it. The member of the community should bring other participants to start earning. New investors are always recruited. They are attracted by promises of stable high income that contribute to the popularity of the project.
The permissionless and decentralized nature of the platform doesn’t allow the regulators to shut down the project.
Even Vitalik Buterin criticized the project in the effort to root out the weed calling it a scam in one of his tweets. However, it didn’t help much.
The Forsage team invites its users to invest a certain amount of Ethereum (0.05 ETH) in the project in order to “open” investment platforms. The latter, according to the plan, will be used for further earnings. In order to receive income, a user who has paid Forsage cryptocurrency must attract new members.
The investors are offered two programs: X3 and X4. The user gets access to them by paying 0.05 ETH. X3 and X4 differ in the number of people who need to be attracted in order to start earning and cover costs, as well as the duration of the programs. Technically, Forsage looks like a classic Ponzi scheme that will begin to crush when new users stop coming.
At present, this high-risk project continues to consume about 10% of the ETH network. The amount of Ethereum that goes to Forsage reached $192 million USD and continues to grow further.
A month ago the share of the ETH fee in the miner revenue was 17%, and now this figure increased 42%. The information was obtained from Grassnode.