Ethereum Blockchain dApp Accused of Being a Ponzi Scheme

Ethereum Blockchain dApp Accused of Being a Ponzi Scheme

Ethereum, News, Scams

Ethereum Blockchain dApp Accused of Being a Ponzi SchemeWhen any scheme promises users “life-long payments guaranteed” it should be met with a healthy level of skepticism. This is the case with the 333 ETH blockchain dApp.

With the promise of a 3.33 percent return per day on your investment, 333 ETH is currently sitting in the top five of the most popular dApps (it was sitting in third spot at the time of writing) ranked by daily usage according to blockchain dApp ranking site State of the DApps.

Ethereum Blockchain dApp Accused of Being a Ponzi Scheme

Suspected Ponzi scheme

On the 333 ETH profile page, State of the DApps claims that “MetaMask & Ethereum Phishing Detector believe this domain could currently compromise your security and will block you from interacting with it.”

“Reason: Ponzi scheme.”

So, how exactly does this wildly successful blockchain dApp actually work?

First of all, you buy in, after which 17 percent of your ether payment is claimed by the site for associated costs and fees, which include Payroll (2 percent), technical support (3 percent), Marketing (11 percent) and transfer fees (1 percent).

After this, you sit back and watch your investment (the 83 percent left after the above fees have been deducted) grow by 3.33 percent.

This payment is guaranteed to every participant, every 24 hours, with the higher your initial investment, the more you’ll make.

Sounds fantastic, right?

The problem, of course, is that if and when people stop paying into the scheme the funds will start to dry up, which means no more 3.33 percent daily return.

11 percent allocation towards marketing costs

It seems that 333 ETH have taken this into account though, which is why 11 percent of your initial investment in this blockchain dApp is immediately swallowed up and allocated to “marketing.”

Hey, it’s not cheap convincing new “investors” that this is where they should put their hard-earned capital, is it?

At the time of writing 333 ETH claims that almost 2,000 people have bought into this scheme, with a current fund account balance of over USD 600,000.

Ethereum Blockchain dApp Accused of Being a Ponzi Scheme

Needless to say, at a time when the future of decentralized apps is very much up in the air, and mainstream acceptance is something that many legitimate companies are striving to attain, a blockchain dApp such as this isn’t going to help the cause.

It seems that 333 ETH is still on something of an upcurve, which is quite alarming considering the blatant signs of a Ponzi scheme.

Here at Crypto Disrupt, we will always go out of our way to highlight situations such as this, and obviously, we would advise our readers to avoid such a blockchain dApp entirely, or if you are determined to check it out, please proceed with caution.

Lover of all things crypto, blockchain and AI, professional tech scribe & part of the editorial team at Crypto Disrupt.

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