Forsage, the main Ethereum application which accounts for 25% of the Ethereum network, has been criticized as a potential Ponzi scheme by the Philippine Securities Commission (SEC).
On June 30, the SEC advised users of the top Ethereum app in question, Forsage, to immediately stop using it and stipulated that the owner officially register with the commission.
Forsage calls itself a “fully decentralized matrix marketing project,” and, “the most thoughtful marketing of its kind. even so, it exhibits many of the typical characteristics of a Ponzi scheme. The person at the top of the matrix gets all the profits and the business will collapse the moment no new investors are brought in.
Top Ethereum dApp legit or a scam?
Forsage is categorized by popular ranking sites as a “high risk” app, where users profit by encouraging more users to invest in tiered “slots”. Each placement is twice as expensive as the previous one and retracts twice as much profit compared to the original referrer.
The SEC’s advisory opinion stated: “Based on numerous committee reports, it appears that the entity operating as FORSAGE, headed by Lado Okhotnikkow, is engaged in investment activities in the Philippines that do not are NOT AUTHORIZED by the commission.
The parties to the so-called smart contract of Forsage, in the nature of securities, through an investment contract in which investors do not need to exert any effort other than to reverse or place money. money in his scheme in order to make a profit.
Some clues of a Ponzi scheme:
They offer their investment contracts in their corresponding Facebook pages or in Facebook groups and secret chat rooms;
They offer an unrealistic return on investment ranging from 10% to 200% per month;
They require their interested investors to pay for their initial investments by depositing their money in a specific bank account, the Coins.Ph account, GCash, through a money transfer company and through face-to-face payments. face with one of the agents of the entity;
The investor then sends by private message a copy of the proof of deposit to the offeror who sends his confirmation after validation;
They usually issue payments through the aforementioned methods; And
They usually claim that they invest their funds in bitcoin and other cryptocurrencies to justify their earning power
Forsage ignores SEC requirements
Despite the SEC’s request that Forsage register as a licensed security service, major operators Ethereum code application . The SEC says Forsage has already contacted her and what she heard did not help the commission in its efforts. The SEC says:
That those who act as salespersons, brokers, dealers or agents of unregistered investment entities in selling or convincing people to invest in such schemes offered by such entities, including internet solicitations or recruiting, beware that they may also be prosecuted and held criminally liable under Section 28 of the Securities Regulation Code and penalized with a fine of up to five million pesos (P5,000,000.00) or a imprisonment for twenty-one (21) years or both under section 73 of the RSC.
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