If you are an entrepreneur always looking for new investments to make then you might have heard of Forsage Smart Contracts in the past few months, be it Forsage Ethereum, Forsage Tron or Forsage BUSD.
What is forsage smart contract? Is forsage legit or a scam? How does forsage smart contract work? In this article, we have detailed everything you need to know about Forsage smart contracts.
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What is Forsage?
Forsage is a decentralized ecosystem based on self executing smart contracts with technical settings fully available and automated, so that they can be safe and stable. The Forsage program was developed on an ethereal blockchain that exists forever and cannot be modified by any entity.
On February 20, 2020 the Forsage program first launched on the Ethereum smart contract and become so popular that majority of transactions on Ethereum originated from Forsage.
In late 2020, Forsage launched a new version on Tron (TRX) to reduce the potential impact of the excessively high Gas fee of the Ethereum network on new users. At the same time, it also introduced a new gameplay called xGOLD.
Subsequently, in the first half of 2021, the program extended to the far more stable BUSD, hence the birth of Forsage BUSD.
How Does Forsage Work?
The Forsage program uses a Gifting scheme with a binary matrix structure. There are 2 types of matrix: X3 matrix and X4 matrix.
The size of the matrix used in the Forsage cycler is 3×1 and 2×2. The 3×1 matrix is very simple in nature and only needs to fill in three positions. 2×2 matrix from the first layer
Based on some particular features of Ethereum, Forsage generates income to their users who refer three new clients to them and convince them to invest in the program.
It is a pyramid-like project that uses Ethereum smart contracts. Users join the program after paying a certain amount of ETH to the smart contract.
They then obtain commission rewards by inviting more users to pay ETH to the smart contract, which is an obvious characteristic of MLM.
In outlined steps here is how Forsage smart contracts work:
- Pay 0.5 ETH to join the project.
- Share the link to Forsage; each registration will charge each person a handling fee of 0.025 ETH, of which 0.5 ETH will be charged for admission.
- The remaining 0.475 ETH is sent to the higher levels of the pyramid, and most of the funds are directed to anonymous positions at the top of the plan, and these people will become the creators of the pyramid plan.
- The matrix sizes used in the Forsage cycler are 3×1 and 2×2. The 3×1 matrix is very simple in nature, it only needs to fill in three positions.
- The 2×2 matrix starts at two positions on the first layer and then expands to four positions on the second layer.
- Parental positions are filled through direct and indirect recruitment of Forsage members.
- Once all positions in the matrix are filled, the recurring commission is activated. A new matrix of the same size will also be entered at the position from the matrix.
Every time a Forsage user invests an ETH, it will be transferred to the wallet of a higher-level recommender. But how does Forsage compel users to keep investing?
It is an intelligent process that will be explained in the example below.
If a user only subscribes to a 0.5ETH level matrix, and the user he recommended invests 3.2 ETH to open a higher level matrix, then the distribution of funds for this recommended user will completely bypass the user who introduced them.
In this sense, Forsage creates a psychology of “FOMO” in the trading field to induce more investments.
Who Owns Forsage?
The Forsage project was initiated by Russian resident, Lado Okhotnikov, on February 20, 2020.
Is Forsage Smart Contracts Legit? Is Forsage BUSD Legit?
To put it bluntly, Forsage is a multi-layer marketing (MLM) pyramid scheme wearing a “cryptocurrency” shell, with claims to have created the world’s first 100% decentralized smart contract.
However, behind its glamorous appearance and very attractive website, the Forsage platform has deliberately used many vague and undefined terms related to cryptocurrency and blockchain, thereby making the investment experience in this field insufficient and befuddling investors along the way.
Participants do not directly create any value, but obtain benefits through the development of offline user participation. Unfavorably, it is very likely that the return on Forsage Ethereum, Forsage Tron or Forsage BUSD will be lower than the investment.
A statistics performed by Chinese website, Chain Catcher, on 16 random Ethereum addresses that participated for more than 20 days in the Ethereum browser found that more than half of the addresses in the Forsage program are in a state of loss, and the absolute profit amount of most profitable users is not high.
Also, in reality, Forsage did not create the world’s first decentralized smart contract.
The idea of decentralized smart contracts has been proposed as far back as the early 90s, even before the creation of the blockchain concept.
More so, the first was not Forsage, but Ethereum. Ethereum has supported it since its launch in 2015.
A major red flag is that in Forsage, customers pay a certain fee to join, and that fee will flow into the pyramid. Therefore, the only way to recover the initial investment on Forsage is to attract a group of people to join the program.
When new members cannot be recruited, this will eventually collapse.
The greatest indictment of Forsage as a Ponzi scheme is the warnings that has come from regulatory bodies like the Philippine Securities Exchange, but most importantly by the founder of Ethereum, Vitalik Buterin.
Similar models have already been played in the past and have yielded bad results on investors. In fact, except for the different gimmicks packaged, Forsage and those projects are essentially the same. Once the blood supply cannot keep up in the later stage, the whole project will basically be cold. MMM is a typical example.
Nevertheless, due to Forsage’s relatively fresh gameplay mechanism, it quickly became popular in some regions.
The project caused widespread dissemination and participation in relatively backward economic regions such as the Philippines, Indonesia and Nigeria.
Whether they run on the blockchain or other scripting platforms, the pyramid scheme is illegal.
These systems are also known as “Ponzi schemes” and are mainly used to benefit their managers and senior recruiters.
The top recruiters (those who arrive early) receive the remaining money, and most participants will eventually lose.
Contrary to what the promoters of Forsage might say, blockchain can easily be used for illegal.
Forsage.io Smart Contract including Forsage BUSD is a scam and not a legitimate investment.
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