One month after the Philippine Securities and Exchange Commission singled out Forsage as a likely Ponzi, it remains the second most popular Ethereum DApp in the Internet rankings.
As of Aug. 6, Forsage has 390,000 users and a turnover of $3.11 million per 24 hours, despite being classified as „high risk“ by dappstat.com.
Speaking to Cointelegraph in July – weeks after the official warning from Philippine authorities – Miguel Cuneta, the co-founder of Philippine fintech Satoshi Citadel Industries, wrote
„I received numerous inquiries from friends and family about Forsage and the ‚investment‘ in Ethereum in the last month or so. People are posting screenshots of their wallets turning a small amount of money into a large amount of money in a short time.“
„It’s the ordinary Ponzi scheme that Ethereum uses, or in the case of the previous ones that were already caught, Bitcoin, as the ‚product‘ they’re selling,“ Cuneta said.
Philippines SEC warns against crypto-currency schemes
„Join by paying X amount of money, and then do nothing and win at ETH, or if you want to earn more, recruit three people and let them do the same. They use the increased prices of BTC and ETH to show that the investment is really profitable. It’s the same formula every time. Sadly, people are desperate to earn extra income in this pandemic crisis and they fall into these schemes more easily,“ he said.
Forsage’s pandemic tactics
In a recruitment post that is still online at the time of publication, the author takes advantage of the pandemic crisis to present Forsage as a smart contract crypto revenue program that allows „work from home,“ offering investors the possibility of „earning a long-term residual income“ by simply recruiting three others.
The launch attributes the program’s supposed reliability to the inherent properties of smart contracts, citing their automated and „nearly unbreakable and unchangeable“ qualities.
This allegedly „means that no human being can interfere with or impede the intended operation of the prescribed process, whether through malice or incompetence“.
Thus, it seems that the Bitcoin Rush technology, designed for decentralized and untrustworthy interactions, is being exploited to give an innovative aura to older and more aggressive forms of investment attraction schemes.
Cuneta said he believes that „most of these people“ involved in the spread of the program „are not aware that it is a Ponzi scheme and are victims as well.