Ponzi here, Ponzi there, Ponzi everywhere..on ethereum!

Ponzi Games Are Breaking Out on the Ethereum

The mainspring of Ethereum lies upon its rich programming language that enables the execution of smart contracts, allowing it to rise above  Bitcoin’typical payment means.

All along, this ingenious technology appealed to multitudes of crypto-enthusiasts who saw the budding of such a technology, however, it also became a big-time base for cybercrime and Ponzies!.       

What Ponzies?

In fact, most of the latest apps on ethereum today appear to match the infamous Ponzi scheme.

Notably, it is the case for FOMO3D and PoWH3D, both ranking on top three apps, invading ethereum this Tuesday.

Reports from DappRadar show that both games have collected 20,000 Ether (equivalent to $9 million) in trading volume during the past 24 hours, enabling both apps to soar on top, in line with top decentralized exchanges, and to actually rise above CryptoKitties; blockchain’s most famous viral decentralized application (dapp) so far.

Set side by side, both applications seem to correlate in two functions.

First, they both apply a temptation-strategy, How? by creating motives for people to join in, that way they can induce as many users and eventually users will be sharing the spoils.

Second, both platforms collapse when new users quit joining, one thing that is familiar to a basic pyramid scheme.

No wonder both projects come from the same group calling itself “TeamJUST.” The creators of this group are to this day anonymous and were not immediately open for any sort of interaction. Whereof the mystery behind the two products has caused much commotion in the crypto community and was considered as an act of fraud.

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Wejden Khachaa

Marketing/Finance Bachelor, worked in several tech start-ups at a young age, her passion for blockchain and her firm belief that it will change the world one day inspires her to write about related topics.

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