Dovey Wan, managing partner at Primitive Ventures, explained that ETH’s rising price is a bubble triggered by the Forsage Ethereum project. According to the expert, the alleged financial pyramid could push ETH to new lows.
just for whoever lives in CT bubble: the ETH price floor is not from a few foodcoin scams or potential defi vault explosion, sadly is from the liveness of Forsage, the ongoing $ETH version Plustoken
I just check its activity which is still thriving, feeling comfy
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) September 7, 2020
Forsage markets itself as a decentralized matrix-marketing project. In July, the Philippine financial regulator noted signs of a Ponzi scheme and urged users to refrain from investing in the company.
Dovey Wan also reminded readers of the regulator’s statement, but noted that the project continues to attract investors.
https://t.co/aRZgqvqrLa wow there is actually a warning ⚠️ letter from Philippine SEC in early July regarding this ponzi 😂 but it’s still growing, what a bunch degens …
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) September 7, 2020
According to EthGasStation, Forsage ranks third in gas consumption over the past 30 days. According to Dune Analytics, 602,697 ETH has been sent to the project, and daily gas usage stands at 2.90%.
Wan believes that the instability or collapse of the Ponzi could push ETH to new lows.
ya i think it’s near the top that the biggest bear case for ETH imo (if couples with a few more defi dramas then GG)
Closely watching
on the flip side tho, the ETH OI is much lower now comparing with before as most ETH are now either with Ponzi or defi TVL..
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) September 7, 2020
Earlier, Ethereum co-founder Vitalik Buterin joined Forsage critics. But company representatives said that such projects positively affect the Ethereum network and provide revenue in the form of fees.
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