ETH smart contract Ponzi scheme


EtherChain gives no info on its web site about who owns or runs the corporate.

EtherChain’s web site area (“etherchain.io”) was registered on June 1st, 2020. Ether Chain is listed because the proprietor, via an incomplete deal with in Skane, Sweden.

Additional analysis reveals EtherChain associates citing Andreas Kartrud as CEO and founding father of the corporate:

I used to be in a position to independently confirm this through Kartrud’s social media profiles:

Andreas Kartrud is a serial scammer. Through the years BehindMLM readers have pegged him selling Buying Sherlock, SwissCoin, Dominant Finance, WoToken, Up2Give, KryptoGlobe, 1 Click on Buying and selling and XOXO Community.

Kartrud is believed to be working EtherChain out of Sweden.

As at all times, if an MLM firm is just not brazenly upfront about who’s working or owns it, suppose lengthy and onerous about becoming a member of and/or handing over any cash.

EtherChain’s Merchandise

EtherChain has no retailable services or products, with associates solely in a position to market EtherChain affiliate membership itself.

EtherChain’s Compensation Plan

EtherChain associates make investments ethereum on the promise of an marketed 310% ROI, paid out 1% each day for 310 days.

Referral Commissions

EtherChain pays a ten% referral fee on funds invested by personally recruited associates.

Residual Commissions

EtherChain pays residual commissions through a unilevel compensation construction.

A unilevel compensation construction locations an affiliate on the high of a unilevel workforce, with each personally recruited affiliate positioned immediately below them (stage 1):

If any stage 1 associates recruit new associates, they’re positioned on stage 2 of the unique affiliate’s unilevel workforce.

If any stage 2 associates recruit new associates, they’re positioned on stage 3 and so forth and so forth down a theoretical infinite variety of ranges.

EtherChain caps payable unilevel workforce ranges at fifteen.

Residual commissions are paid as a share of each day returns paid to associates positioned within the unilevel workforce as follows:

  • stage 1 (personally recruited associates) – 30%
  • ranges 2 to five – 10%
  • ranges 6 to 9 – 8%
  • stage 10 – 8%
  • ranges 11 to fifteen – 5%

Prime Referrer Pool

EtherChain takes 5% of invested funds and locations it into the Prime Referrer Pool.

Every day the Prime Referrer Pool is distributed to EtherChain’s high recruiters (based mostly on invested quantities).

Becoming a member of EtherChain

EtherChain affiliate membership is free.

To take part within the connected earnings alternative a minimal 0.1 ETH funding is required.

Conclusion

Like many serial scammers earlier than him, Andreas Kartrud has realized that working scams is extra worthwhile than selling them – at the same time as a high promoter.

And so we’ve got EtherChain, a barebones Ponzi scheme working on the ethereum blockchain.

That Kartrud is working his rip-off on “the blockchain” is neither right here nor there. EtherChain is a Ponzi scheme and unlawful the world over.

As with all MLM Ponzi schemes, as soon as affiliate recruitment dies down so too will new funding.

This can starve EtherChain of ROI income, finally prompting a collapse.

The maths behind Ponzi schemes ensures that once they collapse, nearly all of contributors lose cash.

 

Replace twenty seventh September 2020 – EtherChain has formally collapsed.