Forsage: “Decentralized” Ethereum Blockchain Smart Contract Scheme Rises
As a news organization who began covering the crypto landscape in early 2017, there has been one constant that remains to be consistent so far. And that is, multi-level marketing and cryptocurrency-related, blockchain-based business opportunities simply have all ended up in complete failure and loss for the majority of its memberbase.
Breaking onto the crypto scene in April 2020, Forsage is a fairly new network marketing company, but it proposed an interesting concept – joining their blockchain smart contract setup with a multilevel marketing company for users to earn cryptocurrency rewards by referring and participating in the matrix that is flooded with buzzwords “decentralized”. Found at Forsage.io, with a smart contract-based membership, investors are invited to join the Ethereum Blockchain Matrix Project.
But is Forsage the real thing, or is there more to this brand than what meets the eye? How will its' fate be any different than the biggest crypto-industry scams like BitConnect, USI Tech, OneCoin, PlusToken or CloudToken? The list goes on regarding cryptocurrency scams as the graveyard continues to collect HYIPs, coin multipliers, trading bots, recyclers, referral matrixs, mining pools and pyramid schemes alike.
Let’s unravel this mystery together and review some of the inner workings regarding Forsage to see if it is truly 100% decentralized and not prone to hacks or scam tactics because it has no admin or owner.
What is Forsage?
The big selling point of the Forsage multilevel marketing scheme is that they have developed the first 100% decentralized smart contract. This “revolutionary” smart contract technology is based on the Ethereum blockchain, which they originally started up in February this year.
More specifically, the official Forsage website states that they’ve “deployed a self-executing smart contract on the Ethereum Blockchain that exists in perpetuity and cannot be modified by any entity.” The smart contract “facilitates peer-to-peer commission payments between its program participants.”
Also described as the Ethereum Blockchain Matrix Project, this smart contract is supposed to offer any participants “the ability to directly engage in personal and business transactions.” The website itself is vague (at best), attempting to entice other individuals in the cryptocurrency space with known terms for this digital asset and blockchain technology. More or less, it looks like the company is trying to seem more knowledgeable than what their usage of these terms implies.
Anyone that has done their research on this industry or even smart contracts specifically knows that Forsage didn’t actually create the first decentralized smart contract in the world, despite their claims. Before blockchain technology was even developed, smart contracts were proposed in the 1990s, and Ethereum’s launch in 2015 came with their support for decentralized smart contracts. In fact, these types of smart contracts have already been used in use cases outside of crypto.
So, the idea behind the Forsage MLM affiliate marketing and referral program is for people to buy into the compensation plan and pass up sales to sponsors and uplines like a traditional commission structure found in network marketing business opportunities.
Decentralization and Forsage: How Does It Work?
Decentralized? We talking decentralization or just a mild form of it that is all but the same as centralization, just based on a blockchain? Much like any other MLM plan or pyramid scheme, the entire program is fairly straightforward in the commitment that consumers have when they join – pay the membership fee.
The way that anyone makes money through a pyramid structure can vary, but most of that fee goes through the pyramid of other members before them who get a fraction of the fee as commission. Once an investment is paid, the only way that new members will be able to make money themselves is when they recruit someone else and up the chain the commissions go depending on how many levels you are qualified for given your investment risk and tolerance.
The membership payment is 0.5 ETH, which is presently $99.36 as of May 15th, 2020. After the new participant pays this fee, they are asked to send on the link to join to their friends. For every person that uses their link to sign up, the member will get 0.025 Eth commission, paid directly from the new member’s entry fee. The remaining free is sent to higher levels in the pyramid, funneling most of the percentage of the fee to the creators of Forsage.
The rewards plan is a bit confusing but is presented like this visual shows:
All members recruited will go into what's called an X3 or X4 matrix used by Forsage. The slot fees go to the ETH wallet of the referrer, and the fee to joint goes up to the top of the pyramid. Ultimately, the only sustainably profitable level to be at is as the owner, and the people profiting the last will be the ones at the bottom of the pyramid.
And as the story goes, those who got in earlier and got qualified will now reap the benefits of the newest members who register, get signed up and join Forsage by paying their multi-tiered level pyramid.
The Forsage Smart Contract: Revolutionary or Radical?
The official website at Forsage.io says that all data is is stored on the blockchain and publicly accessible via etherscan.io (or any blockchain explorer). It goes on to mention about its self-executing smart contract: “Forsage Decentralized Matrix Project's Smart Contract is publicly and perpetually available to view”.
The whole smart contract that Forsage has developed is built on the Ethereum blockchain, further supporting the fact that they are far from the first company to offer a decentralized smart contract.
A smart contract, which is essentially a computer-programmed code with a strict set of metrics that must be met in order for a transaction to be approved. Within the smart contract, the multilevel marketing layout functioning wholly. The fee goes to the smart contract, which sends the money up the pyramid, and the new member becomes a part of the levels. Any new recruit receives a slot under them.
Though there is 0 ETH presently held in the smart contract, it holds over 100,000 transactions, and it can be found at Etherscan.
Also, the keyword decentralization – but questions remain about who setup the website, pays the hosting bill, organized the compensation plan, made the marketing videos and so on. However, due to its popularity within the crypto MLM space, let's review Forsage's marketed benefits and highlight the features as to why so many are seemingly interested if not joining.
Features and Benefits of Forsage
All of the features and benefits of Forsage are fairly vague in their description, mostly attempting to appeal to more knowledgeable individuals in the crypto space.
For instance, the company says that there are “zero risk factors” involved with the scheme, since anyone can view the public smart contract on the Ethereum blockchain. It also states that that the smart contract is immutable, which is exactly the same as any other decentralized smart contract on Ethereum.
In an effort to seem more transparent about their actions, Forsage points out that anyone can view the smart contract’s activity online, showing the exact address (as mentioned above). Furthermore, consumers don’t have to actually reveal their identity to get involved, as the company allows users to sign up with just their Ethereum wallet.
However, the zero-risk factors claim should be examined because the whole crux of this pyramid scheme is paying in so it pays up and then rinse and repeating the cycle.
What Kind of Profits Does Forsage Promise?
According to the claims made online, Forsage manages to make a profit of $1.2 million per week (in ETH), which makes the fact that they have nothing on their smart contract even more curious. Overall, the company says that it has earned a total profit of about $3.9 million.
As far as members go, the company states that they have already added nearly 10,000 new people this week, with a total of about 1,500 each day. In the entire network, there are about 32,000 participants claimed to be involved.
The dilemma or primary problem with this is the early adopters seem to all get in quick enough where the make profits because it is new and buzzing, post those results, and then share it as a hook to lure the next investors into the opportunity. This works, until it doesn't. Whether the website gets yanked down, goes offline, or the marketing firepower dies down, all of these all but eliminate the zero-risk nature of a ticking-time bomb business model. So far, as mentioned in the opening, cryptoasset-related network marketing models have never panned out over the course of years, if not months.
The Creators Of Forsage
Though there are many claims of what Forsage can do and how they can help others, the company is noticeably silent about who may be behind the company. At the top of each “matrix” (which is the same as being the top of the pyramid), there are admins who profit the greatest. The only way consumers can even reach out to the company is through their Telegram channel, which is @smartpeoplechat.
Their website – Forsage.io – was only just registered on February 9, 2020. Obviously, this is all done as a nod to the “decentralization” keywords being showed front and center. The story seems to be painted as Bitcoin didn't need Satoshi to succeed, so Forsage doesn't need to mention the select few who kickstarted the whole shebang.
The Bottom Line About Forsage Blockchain MLM
All Forsage appears to be is a pyramid scheme with no product, no service, and no way of making a profit beyond a membership to the program. While it may be a glorified way of growing user adoption when it comes to using smart contracts based on blockchain distributed ledger technology, this appears to be a running-strong today, when will it collapse tomorrow scheme that many are classifying it as an Ethereum-based cash gifting model.
The only way to make money is to bring more people in, and the only attachment to cryptocurrency seems to be the fat that the membership fee is paid in ETH. The website is lacking significantly in information about the people behind Forsage or the way that the brand works, even though they claim to make over a million dollars each week.
While MLMs are legal in some areas of the world, pyramid schemes are broadly illegal in most places, including the United States. Considering the lack of products or services available, it looks like Forsage is just a pyramid scheme with anonymous people to lead it.
While the results of today may look enticing from those enjoying the current success inside Forsage, it may be shortsighted to promote an opportunity in which transparency and value added are ripe to pick at and given the nature of making a successful network marketing business to work with a cryptocurrency payment system has yet to come alive after over eleven years since blockchain has been up and running.
For those that visit Forsage.io to take a look around, please consider all of the inherent risks before joining any top-heavy pyramid structured scheme that has no sustainability baked into it aside from the continual promotion of its bottom up feeding model. Some may proclaim Forsage to be better than all the other crypto MLM scams to disrupt the industry, but at the end of the day, there are sharks in the digital waters who are always preying on new adopters coming into the space – just make sure you don't take the bait unless you're fully ready to swim with the sharks.