Kataryna Habeliia September 8, 2020
Opinion: Ethereum price is held by the Forsage financial pyramid
Dovey Wan, the Managing Partner at Primitive Ventures, attributed the rising ETH price to a bubble triggered by the Ethereum project Forsage. According to the expert, the alleged financial pyramid could bring down the ETH rate to new lows.
Forsage positions itself as a decentralized matrix marketing project. In July, the Philippine financial regulator noticed signs of a pyramid scheme, so it recommended that users refuse to invest in the company.
Dovey Wan also recalled the regulator’s message but noted that the project continues to attract investors.
According to EthGasStation, Forsage has the third largest gas consumption in the last 30 days. According to Dune Analytics estimates, 602,697 ETH were sent to the project, and the daily gas consumption is 2.90%.
Wang believes that the volatility or collapse of the pyramid scheme will cause ETH to fall to new lows.
Recall that Ethereum co-founder Vitalik Buterin joined the critics of Forsage. But company representatives said that such projects have a beneficial effect on the Ethereum network and provide income in the form of commissions.
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