Vitalik Buterin accuses Forsage of fraud

Ethereum co-founder Vitalik Buterin accused the Forsage project of fraud, which ranks second in gas usage on the Ethereum network.

In early July, the Philippines’ financial regulator warned residents against investing in a company that positions itself as a decentralised matrix-marketing project. The move followed the identification of signs of a financial pyramid.

On ForsageAsia’s Twitter account, the statement was criticised, after which Buterin weighed in.

They oppose you because you are liars. Most users of such projects will not make money, but instead lose a lot of money. Such projects rely on a daily influx of more and more participants to pay earlier participants; when there are no new participants, most users lose everything they’ve invested. Look at Bitconnect, Onecoin, and others.

Please leave and do not contaminate the Ethereum ecosystem in the future, thank you!

— vitalik.eth (@VitalikButerin) August 10, 2020

Representatives of the company stated that such projects not only positively affect the Ethereum network, but also provide income in the form of fees.

Over the last month, users paid fees of $455,000 for Forsage-related transactions. By this measure, the project ranks second only to USDT on the Ethereum blockchain. Earlier, Mitchell Muss suggested that the pyramid’s popularity influenced the growth of fees on the network.

On August 10, the median transaction fee exceeded $1.4, according to Bitinfocharts. The last time this metric reached that level was in mid-January 2018, when ETH hit its price peak.

Earlier in August, the pioneer of the cryptocurrency industry and Blockstream CEO Adam Back placed Ethereum in the same category as fraudulent projects Onecoin and Bitconnect.

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