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How do I know if smart contract like Forsage is a scam?

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Avatar for Telesfor
Written by   1232
2 years ago (Last updated: 1 year ago)

Many of you have already heard about smart contracts. Some of you may have probably heard that smart contracts like Forsage are scams.

Are all smart contracts scams?

No, of course not. Smart contracts are only programs that are stored in a blockchain and run automatically, without human control. A good example of legitimate smart contracts are contracts on Detoken.net. If you want to read more about smart contracts, I recommend the article by Ashma

However, there are certain types of smart contracts that are scams.  They are so called MLM programs or matrix schemes, like Forsage, Bitcoin Millions and others. 

What are MLM programs?

MLM means multi-level marketing. It's a form of marketing. This kind of marketing works in such a way that a participant of the program gets a part of the profit of the people he has advertised in the system.

Are all MLM programs scams?

No. If the MLM program is operated by a company and the company sells goods with the help of MLM marketing, it is not scam. You must imagine that person A invites three people B1,B2 and B3 into the system.  Each person from level B again invites 3 new people (person B1 invites C11, C12 and C13, person B2 invites C21, C22 and C23, person B3 invites C31, C32 and C33). The result is a pyramid.

A legitimate MLM system

All people sell goods and make profit. A part of the profit of the people from level C goes to the people from level B and a part of the profit of the people from level B (incl. a part of the profit of the people from level C) goes to person A. If person A also sells the goods of the company, he has additional profit. The entire profit (including the partial profits of all persons in levels B and C) remains with person A, who no longer shares it with anyone.

In reality there are not only the 3 levels, but much, much more, that is why person A (but also the people from levels B and C and maybe from other levels can become very rich if the people from the lower levels sell many goods of the company. The MLM system creates a pyramid system, but it is not a scam, because in this system everyone earns.  The higher someone is in the pyramid, the more they earn.

What is the difference between this system and smart contract scam like Forsage?

The pyramid systems such as Forsage or Bitcoin Millions work identically to normal MLM systems, with the important difference that the participants do not sell goods. The profit is only generated by the deposit of the new participants. This means that the people who are new to the system pay for those who are at the higher levels.  

A fraudulent MLM system

In these systems all those who are at the bottom of the pyramid lose. And as you can see, most of them are. This system is perfidious because everyone who enters the system is either cheated (because he pays with his contribution for the people on higher levels and loses money because he does not find enough people to pay for him) or he cheats because other people pay for him. The worst thing is that there are always people who are a bit higher in the pyramid (Level B) and really get a little bit more money than they paid for participation.  These people write in the forums and also here in read.cash how good and legitimate these systems are. 

Some say, why am I a fraud if I invite someone into the system?

You are a fraud because you are inviting people into a system where many people will deposit money and lose. Because the people you invite won't find anyone to pay for them anymore. If you imagine a pyramid, you see that every pyramid must have a base, it cannot grow infinitely. And that the base is much, much bigger than the top. And the bigger the pyramid is, the more losers there are.

You are inviting people into a system that is built so that very many lose some money (usually not very much), but very few, at the top of the pyramid, win a lot of money.

So how do I know if a smart contract is a scam?

If a smart contract:

  • demands a fee from you (usually they call it an investment);

  • is an MLM system (or matrix);

  • and does not sell goods or services;

it is most certainly a fraudulent pyramid scheme, a scam. 

It does not matter that the system is not controlled by anyone. The program is designed to work automatically and those who have started the system get most of the money from new users.

These systems have different names, Forsage, Bitcoin Millions and others. It is also tried to attract new users to the systems on read.cash.

Do not participate in these systems and warn everyone not to participate in such systems.

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Avatar for Telesfor
Written by   1232
2 years ago (Last updated: 1 year ago)
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Comments

hey Telesfor, met you on noise.cash. sorry if i'm digging up an old post but i was wondering if you had thoughts on HEX and some of your points here seemed very relevant.

the argument that a lot of its adherents--and i guess my desire to use that word might speak to them being problematic--use is that it's a smart contract, so there could never be any funny business, but there is a lot of weirdness built into it and Richard Heart seems very scammy. it's kind of become a project for me to sleuth it out, but i can't find anyone that has any thoughts. cheers!

honestly at this point i feel like it is very much a scam but i want to know the play. i can't figure it out.

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1 year ago

From my point of view HEX is a clear scam. Here is a good article about it in German. If you don't understand it, you can translate it with Google translator.

https://www.blockchaincenter.net/hex/

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1 year ago

thanks for the article, it hit all the points that i've been thinking about. funny that it's so hard to find an article like that in English....Richard Heart propaganda machine....

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1 year ago

Thanks a lot for this nice article with great explanation. From last fewew days I was thinking about this site.but now it's clear to me.Thanks a lot,,,

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1 year ago

এ সম্পর্কে আমি অনেক রিসার্চ করছি এবং আপনার Article অনেক ভালো লাগছে বেস্ট উইসেস ফর ইউ

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1 year ago

Sir, I have learned a lot from your post, which will help me a lot. Thank you very much sir. If you don't mind, I want to say something. I hope you will reply to my comment sir

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1 year ago

This article has made me feel sad because on Facebook before joining read cash I was in search of sites and ways to earn money for my self and family. then there were so many people asking others to join forsage they've asked me too several times to join it but because of no money and eth I was unable to join now I'm feeling why there were trying so hard because they've invested their money and have lost it because no one was joining by their links and now they were trying to do the same toothers to recover their loss that's sad 💔

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2 years ago

Forsage is not the first and not the last program of this kind. The scammers flood the social media and persuade people to deposit money there. Also here on read.cash they are doing it. That is why it is important to learn. New programs under different names will emerge. Please be careful and warn your friends as well.

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2 years ago

This is an informative article. It is useful. Thanks a lot for sharing this 💕

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2 years ago

Great article sir. Thus article very informative. I like your all article sir. But this article very important and unique. Thank you sir for presentation about this topic..

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2 years ago

All MLM are unnatural forcing job.

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2 years ago

Thanks for this details

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2 years ago

Good info.

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2 years ago

thanks for the article...I'm connected with an MLM company...it doesn't require any cost for joining and doesn't have any other requirements... and it follows binary system.. thank you again dear...I've learnt something new 😍

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2 years ago

If you do not have to pay to join and use it, it is not a scam.

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2 years ago

yes.. .i think so..thank you sir for the help

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2 years ago

Thank you for sharing this information, it helps a lot❤

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2 years ago

Thanks for this information.... Nowadays scamming is increasing day by day which is very harmful to us

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2 years ago

Very good article! Thank you for sharing it with us!

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2 years ago

Good information. Thanks for sharing sir

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2 years ago

Nice article with good information with it, thanks for sharing it :)

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2 years ago

This kind of scams are now increasing daily. The c level participants hardly know about the system and for profit invite others. It is good that you write about the scams and warn people. 👏👏

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2 years ago

thanks for the info sir

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2 years ago

Thanks for this, you explained each and everything very well. This serves as an eye opener to us.

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2 years ago

Well explained, now a days the crypto currency earning platforms have become minefield of scams. But still they are thriving on the basis of ignorance and greed of customers. Though the IP address of these companies can be tracked by enforcement agencies but till now I haven't heard of any punitive action taken against these scammers.

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2 years ago

Because the smart contracts are written in the blockchain and executed there, you cannot block IP's. Once started, the systems run automatically and enrich the person A who started them. Today a user forsage.io registered on read.cash and advertises his system. I have warned about Forsage under his article.

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2 years ago

Is there no way out to nail the scammers, it will then become the dark side of blockchain. I saw a forsage ad in one of the pay to click sites and I suspected the same. I am yet to see a MLM scheme that is selling a product.

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2 years ago

That's why you need to educate people about what I do and ask you all to do it. That's the only defense.

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2 years ago

People will still not learn, they will still complain that they were scammed

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2 years ago

Despite that, i know so many people who still happily want to join forsage

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2 years ago

Warn them. They're gonna be the red circles. The loosers.

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2 years ago

Pity you did not start with spending one sentence on what a SMART contract is. My first thought would be that ugly "car". Yes, you can refer to someone else but if I read here I like to read the basic info here not click on. That's great if I have a good connection and all the time in the world but that's something we already know no one has here.

Nice article but it didn't really make me wiser. I guess the smart contract is no part of my life, I didn't bump into it and for sure I am not going to pay for something I do not trust which is most what is posted on the internet and blockchain.

👍💕

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2 years ago

I don't think you're the target audience for this article. Fortunately, people like you are not susceptible to this kind of scam. But there are a lot of people who think that they "invest" a few dollars and then get rich quickly. These people actually only pay a fee to the scammers. For these people this article is.

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2 years ago

I guess I am not. 🤔

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2 years ago

Nice thought article bro, I dislike MLM and smart contract what so ever it like robbing Peter to pay Paul if a upline has to enjoy my money I don't like it I rather trade or choose wise investment then inviting people to participate in smart contract.

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2 years ago

I don't like smart contracts too,I tried one and didn't get anything out, thanks for the advice

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2 years ago

Okay i get it

$ 0.01
2 years ago

Thank you for the knowledge ... You explain it well ...

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2 years ago

Their time will certainly be up, they can operate for a long time. When there are no people to join the system that's when the biggest scam will happen.

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2 years ago

Sir you are great and helpful to all of us.. very informative article for us...Thanks for this article 💜💜💜

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2 years ago

All of your photographs,I like very much..Because always you give us something new..The 3rd photo is really amazing...Carry on and keep sharing

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2 years ago

3rd photo seriously? 3+7? Bot check.hahaha

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2 years ago

I saw a lot of this smart contract thing, one of those was tronbank. Never in my mind came to invest in this kind of investment. Nice information, keep posting!

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2 years ago

Yeah their method won't work again no matter what they call it. The one that's reigning now it's pinkcoin but then again 🤦🏽‍♀️

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2 years ago

Your piece is an eye opener for me.It has helped answer alot of questions that I had on my mind about the concept of smart contracts. Muchos gracias

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User's avatar M3i
2 years ago

That why I will never deal with them, and stay far away!

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2 years ago

Thank you for this information,now I know how to spot a mlm scam.

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2 years ago

This is very true. I have alot of friends in forsage and they keep asking me to join but i have been resisting. Thank goodness I got to know more about it now

$ 0.01
2 years ago

Whats your tele ?

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2 years ago

?

$ 0.00
2 years ago

telegram username

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2 years ago

[deleted]

$ 0.00
2 years ago

Thanks

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2 years ago

Did you write it down?

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2 years ago

Greetings friend, I liked the topic, it is very useful to share the information to avoid losing money, otherwise the scammers will continue to do their thing. Thanks for sharing.

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2 years ago

Useful information. Luckily I search first at YouTube last time cause I'm very interested in forsage but na ah, such a let down.

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2 years ago

Thanks for sharing

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2 years ago

Very informative article.I can learn lots of thing through this article. Thanks to you for sharing that type of article 😌😇

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2 years ago

nice

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2 years ago

Well my friend. Only international low can broke this. But this control by a level. Some c leave people understand work. Some very great . System keep him behind. I didn't like MLM system. But I am include this. Because some of And control all think.

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2 years ago

I support your opinion on this issue. This is like the famous "MMM" that eventually scammed millions of people worldwide. No tangible products/services are being sold to make profits for members. We know KEDI, Tianshi, GNLD etc as legit MLM; Forsage is a potential scam.

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2 years ago

Thanks for this.. really useful

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2 years ago

This is an informative article. It is useful. Thanks a lot for sharing this

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2 years ago

Your article is very useful. It's real practical. I hate schemes where you pay to join and then work to get others in in order toto get paid. You're right, it's fraud

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2 years ago

Pyramid schemes didnt have products. Its ok if it is MLM but has real products

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1 year ago

Thank you

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1 year ago

Nice

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1 year ago