- Philippines’ Securities and Exchange Commission (SEC) declared Forsage as a Ponzi.
- Vitalik Buterin demanded that Forsage leaves, and stops polluting the Ethereum ecology at the earliest.
- the Central Bank of Philippines is considering issuance of CBDC, as SEC amplifies warning on Forsage Scheme
It has been a while since the Philippines’ Securities and Exchange Commission (SEC) declared Forsage as a Ponzi. Till Aug 6, Forsage had 390,000 users and a turnover of $3.11 million per 24 hours, in spite of being marked in dappstat.com rankings as ‘high risk’. Since its inception, many have accused Forsage of being yet another Ponzi scheme to make money off Ethereum enthusiasts. The lure of making quick bucks amidst the financial crisis induced by Covid-19 is also an important reason which has been drawing consumer traffic for Forsage of late.
However, the scheme has not stopped luring unsuspecting consumers to it, and still remains the second-most popular Ethereum DApp as per internet rankings. Despite warnings issued by SEC, it has been continuing with its illegal ways without regard to the legal threat.
What’s the controversy?
In recent happenings, the Central Bank of Philippines is considering issuance of CBDC, as SEC amplifies warning on Forsage Scheme. Earlier on Tuesday, Twitter handle, Forsage Asia shared this piece of news from Bitcoin Nigeria which an apparently ‘bold’ caption: “The Central Bank of the Philippines has to fight Forsage.”
Soon after, Russian-Canadian programmer and writer and creator of Ethereum, Vitalik Buterin took to Twitter to express his extreme disappointment about the entire affair. Pointing out that they were being fought against as they were a ‘lie’ in the first place, Vitalik alleged that most users will only end up losing massive money in such shady projects. He further added how such projects feed off the ignorance of people who enter the system every day to pay the previous participants, and with the exit of new participants, most users ultimately lose everything they invested.
— Forsage亞洲 (@ForsageAsia) August 10, 2020
Citing examples of similar scams like Bitconnect, and Onecoin, he demanded that Forsage leaves, and stops polluting the Ethereum ecology at the earliest.
Not the one to back off, Forsage responded to Vitalik’s criticism in a recent tweet accusing him to be a ‘beneficiary’ of the system who is now playing the ‘victim’ card. According to them, it is the large-scale emergence of the project which played a role in flourishing the Ethereum ecosystem.
— vitalik.eth (@VitalikButerin) August 10, 2020
Reminding the creator of Ethereum that it was ‘schemes’ such as theirs which was largely responsible for Ethereum’s popularity in 2017, Forsage emphasised that it was such ‘schemes’ which increase user interest and consumer traffic. Forsage even went on to call Vitalik a ‘coward’ as he did not engage in further debate.
With the Twitter war going, Vitalik seemed to be winning the battle as the majority of the users agreeing with the Canadian-Russian criticism of Forsage.