Jon von Tetzchner, the CEO of Vivaldi, has called the entire apparatus of crypt a pyramid scheme. It is an easy claim to make when you mention the number of scam that have cost users over a billion dollars.
Well, at least one of these alleged scam is now being called out as a legitimate scam for trying to get people to sign up in order to get a cut in the price of the coin.
11 people that helped found and operate the company Forsage were accused by the SEC of operating a $300 million ponzi scheme. The majority of the founders lived in Russia, Georgia, and Indonesia. Three U.S.-based promoters were hired to promote Forsage, according to the SEC.
A group called the "Crypto Crusaders" promoted the scheme in at least five states. The SEC said the Crusaders were involved in the sale of securities in Forsage.
The scheme operated on three blockchains, including ethereum, tron, and later the Binance Smart Chain, and apparently took directly from the old multi-level-marketing pyramid scheme. The agency said that the company didn't have a product to sell, but instead focused on getting investors to create a crypto wallet and then buying lots in the company's smart contracts, which will allow them to earn from each other person they recruit below them. A chain of people trying to get others to sign on below them in a desperate attempt to make up losses and eventually make a profit is created by this.
If you're still confused about what a pyramid scheme is, this video from It's Always Sunny in Philadelphia could help. There are a lot of videos online talking about Forsage and how obvious it is. The website claims that it is a decentralized networking platform that helps connect people.
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