We did a quick Forsage review to know whether it’s legit or not. If you are interested in this money-making activity, then read the following questions and answers for you.
Table of Contents
What is Forsage?
Forsage is an Ethereum-based Pyramid Scheme. Its business model relies on the recruitment of new members. Affiliates are rewarded when they can convince others to join the platform. It has no products or services. It uses the matrix system of rewarding participants.
According to the SEC of the Philippines, it is headed by Lado Okhotnikov.
How does Forsage Smart Contract work?
Technically, the administrator of the Forsage website integrates its script with the Ethereum Blockchain to capture the payments of new associates. Membership is paid in Ether (ETH) and the digital currency is sent directly to your referrer or the people above you.
A portion of the ETH you paid is deducted. This part goes to the admin of the site, who is also the founder of the Pyramid Scheme.
How does Forsage Scheme work?
Forsage is an endless chain of modern recruitment scheme. First, a person will recruit you because he makes money from your payments. Then, you will turn your effort into recruiting others to recover your investment. When recruitment stops, the scheme will collapse.
How do you make money from Forsage?
The only way to make money from Forsage is to recruit new affiliates. Since it has no products or services, you need to promote the membership of the Pyramid Scheme. It will give you a referral link to promote in social media and other platforms.
How legit is Forsage?
Forsage is a Pyramid Scheme because it has no products or services for sale. Its founder is unknown. Its a scam. Forsage is a just platform that captures ETH and sends it directly to your referrer and the admin of the site.
When it can no longer recruit, it will disappear.
Who makes money in this scheme?
Only the founder and the top promoters will benefit from this Pyramid Scheme. These people make money at the expense of the poor downlines.
What should I if someone invited me to join?
Get his name. Screenshot his invitation to you. Then, report to the authorities (SEC, PNP, or NBI).
What should I do if I’m already a member?
Admit your mistake and report to the SEC, PNP, or NBI. Never promote this scam. When authorities found you promoting this scam, you may be held criminally liable.
How is ETHMatrix related to this scheme?
ETHMatrix is a copy of Forsage. The latter started earlier this year while the former was formed this June 2020. The script used can be bought on the web at a reasonable price. Both are pyramid schemes.
SEC Security Fraud Warning
On the 30th of June, 2020, the SEC of the Philippines issued an advisory to the public against investing in Forsage. The commission says:
However, per our record, FORSAGE is NOT REGISTERED with the Commission and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to solicit, accept or take investments/placements from the public nor to issue investment contracts and other forms of securities defined under Section 3 of the Securities Regulation Code (SRC). FORSAGE is also NOT REGISTERED either as a crowdfunding intermediary or a funding portal under SEC Memorandum Circular No. 14, Series of 2019 or the Rules and Regulations Governing Crowdfunding.
Furthermore, the government regulator noted it is not among the banks, exchanges, or companies engaged in digital assets registered with the Bangko Sentral ng Pilipinas.