Victor Ugochukwu · Dec 14, 2020 . 5min read
Vitalik Replies Forsage, labels it a Ponzi Scheme
Forsage which displays as SmartWay Forsage on the Ethgasstation keeps ranking 2nd and in this case, has consumed over $464,000 in gas costs
By Victor Ugochukwu · Aug 11, 2020 . 6min read
Vitalik, the founder of Ethereum in a tweet, replies Forsage Asia labelling it as a Ponzi. Thus asking it to leave and not pollute Ethereum’s ecology.
Apparently, this exchange ensued after the Fosage Asia Twitter handle posted an image of showing news that reads: “Central Bank of Philippines Considers issuing CBDC; as SEC Amplifies Warning on Forsage Scheme.”
Subsequently, Vitalik jumped in on the tweet to reply Forsage Asia in Chinese:
The translation to the tweet literally reads:
They fight against you because you are a lie. Most users of this kind of project will not make money but will lose a lot of money. This kind of project relies on more and more people coming in every day to pay the previous participants. When the new participants are gone, most users lose everything they invested. Look at bitconnect, onecoin, etc.Vitalik’s response to Forsage Asia
I ask you to leave and do not pollute the Ethereum ecology in the future, thanks!
Perhaps, Forsage Asia meant for the tweet to be a mockery to regulators such as SEC and government-sanctioned institutions like the Central bankers many of which are favourably disposed towards the issuance of their own central bank digital currencies – CBDC.
Interestingly, an earlier tweet from Binance Research shows that about 31% of transactions on Ethereum are Ponzi related. It tweeted:
Binance Research tweet adopts “MLM” as the word to describe the likes of Forsage, MMM, etc, which is just a euphemism for the word “Ponzi”.
Crypto Ponzis occupy the top 25 positions on Ethgasstation, more reason why Vitalik calls Forsage a Ponzi scheme.
Besides, a quick look at Ethgasstation, a website that shows the current rate of gas fees and health of the network in terms of transactions shows the toll Ponzis like Forsage are taking on Ethereum.
Clearly, Forsage, which displays as SmartWay Forsage on the list keeps ranking 2nd and in this case, has consumed over $464,000 in gas costs. Lion Share, another Ponzi ranks 4th. Even if you decide to look outside the top 10, other Ponzi platforms still show up with the ETH Leaderboard. MMM, Binom and Million Money 2.0 are 11th, 21st and 24th positions respectively.
Even altruistic networks like Ethereum could also house unscrupulous Ponzi schemes.
Thus the borderless and decentralized nature of blockchains and uncensorable nature of transactions of the blockchain can also be employed by those not with entirely pure motive as we can see in many of these crypto Ponzi schemes. Vitalik openly calling out Forsage as Ponzi would perhaps lend a loud voice to the fight against unscrupulous Ponzis schemes out there.
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