One of the offshoots of the blockchain revolution is that all sorts of players have latched on it to enrich themselves. Though the era of crypto ponzi seems over, many new scams are evolving knowing that there are many that are not well-informed about the crypto space. Recently, we came across ETHGain, a ponzi that is based on blockchain.
Obviously, there are many that are not aware that they are actually dealing with scams when they sign up with a site such as this just because they’re told that all they needed was sign up 3 persons to start seeing a lot of funds in their wallets.
There are others that are aware that these scams never end well but are propelled by greed to get involved and even link their family and friends to it. Regret sets in when the site is taken down and their money down the drain.
What is ETHGain?
This is a peer-to-peer ethereum donation site that calls itself a ‘community of ordinary people contributing to each other on the principle of reciprocity and benevolence’. Participants have to donate 0.088 eth to someone register. Then they have to promote the program and have three signups to cycle out of the first stage.
They then have to move on to the next level which requires 0.18 eth contribution to enter. There are 4 levels in cycle 1 and 4 levels in cycle 2 making a total of 8 phases. In the last phase, a contribution of 300 eth is required to cycle out.
This is a ponzi that operates a matrix system and like all ponzi, the people that may make money are those at the top of the pyramid. This means that the main beneficiary is the owner.
Who is Behind the Program?
Sites like this would never reveal the identity of the owner for obvious reasons. They’re aware that it is simply not sustainable and wouldn’t want to get into trouble for initiating a ponzi that turned out causing people losses. ETHGain owner hid under anonymity of the team to conceal the identity of the owners.
According to the site:
“ETHGain was developed by a group of anonymous international blockchain programmers who chose to remain anonymous because they believe the cause is much important than them.”
Interestingly, the site claims that it has country and regional representatives that the user should contact if they have issues. Is it not weird that a business that carefully hid the identity of the owners decided to reveal those of some participants that may end up being held responsible if something goes wrong with the scheme?
Could you image the implication of having many people who are not aware that they’re about enriching someone at the top of some pyramid promote a scheme such as this? These people would practically make donations to the anonymous owner of ETHGain without knowing that they are being used.
This is why we recommend that people always avoid unreliable and fraudulent schemes such as ponzi, pyramids and HYIPs. Even though such sites claim perpetuity, they crash as soon as new investors stop joining. The real winners are the fraudsters who own them.
The data shown below may be faked to encourage more people to sign up to the scheme.
Just Like 333 ETH
There have been several peer-to-peer donation platforms that were built on smart contract. They all turn exit scams as a matter of precedence. It is a known fact that ponzi and pyramid schemes are not sustainable. 333 ETH is one of such smart contract-based ponzi. As you would have guessed, that has long become another exit scam.
It is important to know that the main beneficiaries of scams such as this are the fraudsters behind them. This is because they naturally link their wallets to the top of the pyramid. Then link up many other wallets that are theirs so that most of the funds contributed by participants are actually funneled to them in a classic case of making others slave for them.
This is the reason why you must never send your funds to dubious investment sites such as this.
It always makes sense to invest in genuine investment sites. These are sites that have built online reputation, their owners are known and everyone knows that they run their business according to best practices in the industry.
Sending your ether to a site like ETHGain is invitation to losses. It just would not work. This is why you should protect your digital assets by making sure that the scammers don’t steal it from you through dubious sites such as this.
The investment site that we recommend would show you how to grow your assets through a social investment program that allows you to copy the trade of professionals. To sign up for the site, check here.
What is your opinion about ETHGain? Please share using the comment box below.