Forsage, the largest fund of Ethereum, has entered China, and the total participating addresses have exceeded 1.1 million

On the Ethereum DApp user list and Gas consumption list, a project called Forsage (Chinese name Fosage) has occupied the top three positions since the beginning of the year, with the highest number of single-day transactions exceeding 40,000. The address exceeds 20,000, the total participating addresses exceed 1.1 million, and the value of capital participation exceeds 300 million U.S. dollars. Investors who often check information on Ethereum-related data websites this year may have seen this name. If you learn more, you may know that this is capital Disk project, but most of them don't know much about how Forsage works and why it attracts a large user base.

The chain catcher learned that the Forsage project was initiated by Lado Okhotnikov, who is said to be a Russian resident, in early February this year. It is a pyramid-like project that operates using Ethereum smart contracts. Users join the project after paying a certain amount of ETH to the smart contract, and By inviting more users to pay ETH to the smart contract to obtain commission rewards, it has an obvious MLM nature, but the more critical reason for its popularity lies in the design of the double matrix and reward slipping.

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The design of the bankroll game

The popularity of Forsage lies not only in moving the common multi-level distribution network to the Ethereum smart contract, but also in making full use of the characteristics of the smart contract to stimulate the psychological weakness and enthusiasm of the participants to the greatest extent.

According to various data, users who participate in the Forsage project first need to open the link from the superior recommender and pay 0.05 ETH to the Forsage smart contract. The smart contract does not deposit any funds, but divides this part of the funds into two parts through The x3 matrix and x4 matrix are automatically transferred to the Ethereum wallet of the superior or higher-level recommender, that is, each has 0.025 ETH.

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Publicity materials for the domestic community

The design of the x4 matrix is ​​that each user ID has 6 recommender points, and the 0.025 ETH of the first 2 recommenders will be transferred to the wallet address of the user’s online recommender. The development of the third, fourth, and fifth recommenders The funds belong to the user, and the funds of the sixth recommender will be randomly transferred to the wallet of the nearby user.

Although the threshold for entering this capital market is 0.05ETH, the two matrices have 12 levels respectively. The threshold ranges from 0.05ETH and 0.1ETH up to 51.2ETH. times, each ETH invested by the user will be transferred to the wallet of a higher-level recommender according to the aforementioned mechanism.

The mechanism of Forsage to induce users to invest more ETH and increase the matrix level is that if a user's matrix level is lower than the level of his offline, then the rewards from the offline will bypass the user's wallet and "slide" to the recommended level. High, the matrix level is not lower than the user's online wallet.

For example, if a user only opens a 0.5ETH-level matrix, if his downline invests 3.2 ETH to open a higher-level matrix, then the allocation of funds for this downline will completely bypass the user, resulting in a similar cryptocurrency The Psychology of "FOMO" in the Trading World.

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Stimulate users to join with compelling data on the official website

In this case, Forsage users’ income can come from two parts after investing and participating. One part is the so-called dynamic income, that is, the reward from directly recommending users, which requires a lot of energy to expand offline; the other part is the so-called dynamic income. Static income, as long as the user's matrix level is high enough and has developed a certain number of offline, then it may happen that the matrix level is lower than the lower offline when the offline is further developed, then you can enjoy to the "slip" earnings of these downlines.

More specifically, compared with past pyramid schemes and fund-raising projects, Forsage has the following main characteristics: it has an extremely low capital threshold, and claims that "a few hundred can participate in international projects", and then through various mechanisms Stimulate investment; the hierarchical relationship has no direct relationship with the level of income, and users can increase their possibility of "intercepting" slipping rewards by opening a higher-level matrix; claiming to operate based on smart contracts, there is no risk of capital precipitation and collapse.

From the above points of view, Forsage completely has the characteristics of a pyramid scheme and a capital market. Participants do not directly create any value, but gain benefits through the development of offline users to participate. However, for participants with weak market expansion capabilities and later stages Unfavorable, it is likely that the return will be lower than the investment.

Nevertheless, due to the relatively fresh gameplay mechanism of Forsage, it quickly became popular in some regions, especially in May and June this year. The number of active addresses is more than 10,000.

At the end of June this year, the Philippine Securities and Exchange Commission also issued a warning against the project, saying that an entity led by Lado Okhotnikov and operating in the name of Forsage was found to be engaged in investment activities in the Philippines that were not authorized by the Commission. A possible Ponzi scheme, where funds from new investors are used to pay "fake profits" to previous investors, to the detriment of subsequent members of the field, the public is advised not to invest or to stop investing in the project.

Chain Catcher randomly conducted data statistics on 16 Ethereum addresses that participated in more than 20 days in the Ethereum browser (see the figure below), and found that more than half of the addresses were in a loss state, and the absolute profit amount of most profitable users was not high. Huge gap levels.

However, since the beginning of September, the data of Forsage on the Ethereum network has shown a rapid decline, and the active addresses on most days are between 1000-2000. This is partly due to the fact that the project officially launched a new version of Forsage on TRON to reduce the potential impact of the high Gas fee on the Ethereum network on new users, and also launched a new gameplay called xGOLD.

However, judging from the TRON browser data, the average daily active address of the Forsage TRON version is also between 1,000-2,000, which is far lower than the peak period of more than 20,000 daily active addresses when added to the Ethereum data.

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How to enter China

Although Forsage's official website has 8 language versions, there is no Chinese page for a long time, which also led to the slow development of the project in the Chinese market in the early stage.

However, since the beginning of August, an organization called "Magic Leopard Alliance" has begun to promote the Forsage project on a large scale, sorting out a large amount of Chinese materials about Forsage and participation strategies. The following activities, on the one hand, convert interested users through channels such as Weibo, currency circle media websites, telegram groups, etc., and organize discussions in the Forsage community.

Chain Catcher recently added a number of Forsage’s so-called community evangelists through WeChat accounts found on some network channels. A picture of a promotional activity, calling on everyone to "pick up Ethereum".

However, according to the observation of the chain catcher reporter, there are still many new users joining the community every day, with a total of more than 100 people joining the group in two days. The reporter also added a number of users in the group. There are many spectators and participants. Except for one participant who claimed to have earned a lot of ETH, the other two have not yet paid back their money.

Dandan (pseudonym), a participant who is familiar with Forsage, told Chain Catcher that he learned about this project from a friend in the currency circle in Shenzhen at the end of August. He invested about 1.6 ETH at that time, but later realized the " After the essence of "pulling people's heads", I did not continue to participate.

"For those of us who are knowledgeable and understand the blockchain, playing circle projects can have a higher rate of return. Forsage not only has low static returns, but also hurts people." Dandan added, "For users outside the industry, smart Concepts such as contracts and decentralized wallets have high barriers to entry, and the conversion rate will be limited after all, so it is not a good project.”