Have you come across one of those smart contract based platforms that tell you that it is now owned by anyone? These platforms claim that since it is run by a smart contract, they are so trustworthy that you have nothing to worry about.
One of such platforms is Multi Today and we are taking a closer look at it to learn if it is something that you should invest your funds in.
What is A Smart Contract?
In case you’re not aware, a smart contract is a blockchain based program that runs on its own as programmed. This means that when a smart contract is deployed, none of the parties involved can change or alter any aspect of the contract.
The execution is automatic when the conditions as laid out in the contract are met. It finds usage in many fields such as finance, logistics and management.
This is the technology that has been employed by this site and we shall analyze if the site is worthwhile despite deploying a smart contract.
What is Multi Today?
This is a smart contract based investment site that promises its investors high returns on their investments. The investment currency is the cryptocurrency, Tron.
The scheme guarantees its participants that they would make minimum gains of 111% of their investments. This is not a fixed profit, as there is a higher possible profit of 141 percent.
Interestingly, the smart contract was set up to pay the first people in queue. So when a new participant makes a deposit, their fund is moved to the first individual until they have made a minimum of 111 percent. They then exit the queue for the next in line to be paid.
This means that if you sign up for the scheme and make a deposit of say 10 TRX, the fund would be moved from your account to the person’s whose turn is to receive payment. Your account would immediately become empty until it’s your turn to receive payment.
The site stated that the reason for the quick distribution of the funds is partly security so that every member’s fund is secured from theft. However, it assured that if the funds are not needed that it would be returned to the wallet of the participant.
The promoters claim that since the project has no owner, that it would continue to run on the smart contract even if there are no developers supporting it. This is true for all smart contract, but there are still some issues in the scheme.
Ponzis Depends On New Members
There is no doubt that this is a Tron based ponzi because there is no other source of funds except the contribution of new members. This means that when there are no new participants, the fund dries up and no one gets paid. This is the point at which the program collapses.
One fact about such businesses is that you cannot get enough people to continuously support it since human resources is limited. This is why such endeavors depend on active recruitment of people.
However, according to the site, on the question of a referral program, it seems that it was not built into the smart contract so it stated:
“No, because the referral program is just a waste of investors money. Since the contract is really good, you get a good percentage of your investments. Attract others to participate in the program without a referral link – and you will be able to wrap up your deposits many more times!”
Obviously, the success of the program to the point that you get paid depends on the ability of every participant to bring new people to sign up.
Founder is Principal Beneficiary
You do not need an expert to know that an investment scheme like this is not sustainable. In any case, the main beneficiaries are the owners who would definitely be the first on the queue.
They may even be the only beneficiary since unless they are paid as the first participant, no one else gets paid.
This means that if they made a deposit of $500,000 worth of Tron, no one else would be paid until they have received more than a million dollars, which is the equivalence of 111 percent minimum profit the smart contract has been programmed to execute.
In essence, this project could be a complete waste of time for you as an investor, especially considering that there is no guarantee that you would get paid despite the site’s claim:
“If you sent TRX to the address of the contract, your transaction was confirmed, then you will definitely receive a payment. You cannot specify the exact time, but payments are made automatically with each new deposit. Payments are made in the strict order of deposits. And since all participants are on an equal footing, it remains only to wait for their turn.”
No Business Mean No Business
When a site is not authorized by relevant regulatory authority to run a financial service, dealing with such sites as an investor is a quick way to lose your funds.
In fact, operators of ponzi schemes have recently found the Tron coin attractive. This has recently created some problems for the company behind the network, especially when such schemes collapse.
As an investor, why should you risk your funds in an unregulated site that is not involved in any business? Even though it is run on a smart contract, it is important to understand that even a smart contract can only execute when the necessary conditions are met.
In this case, it depends on getting more people to join the scheme and actually paying all the people ahead of you. So if the people in the queue before you are not paid for any reason, you stand no chance of getting your funds and profit back.
Sites such as Multi Today are designed to benefit just the owners. Do not believe the line that no one owns it since it is based on a smart contract.
The smart contract was written by someone to meet their personal objectives. Since you were not part of the agreement when it was drafted, joining a scheme like this in a bid to make money is a shot in the dark.
Always insist on investing with regulated sites backed by companies that have built reputation. These are the type of sites that are licensed by the government to render financial services. You may check our top recommendation for an opportunity to grow your assets through expertise.
You may share your experience with this site if you’re a participant. Please use the comment box below to let us know your views.