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One of the most popular Ethereum apps certainly looks like a Ponzi scheme



"Lifetime payments guaranteed by the Ethereum blockchain!" LOL.

Image: WIT OLSZEWSKI / SHUTTERSTOCK

They & # 39 ; I'm not even trying to hide it.

One of the most popular apps built on Ethereum's blockchain, a so-called DApp, promises users a guaranteed fixed daily return on their investments. And all that should be cryptic-rich is to put a series of cryptocurrencies on the front row, then sit back and wait for the prizes to arrive. Assuming that new people continue to follow the example, that is.

And man, definitely looks a lot like a brash Ponzi scheme.

For those who do not know it, a DApp is a decentralized application built on a blockchain like Ethereum or EOS. You may be familiar with legitimate DApps like Augur or CryptoKitties, but this is not a story of what honest programmers can create using the power of the blockchain. Rather, this is a look at the magical thinking of the 333 ETH – a DApp that promises "lifelong payments guaranteed by the Ethereum blockchain!"

"Given the ponzi nature and problems of implementing payments in the contract, this can only go wrong."

And you'd better believe that people like the sound of that.

According to DApp's site, State of the DApps, 333 ETH is somewhere around the fourth most popular decentralized app by everyday users. It is just behind the most popular third, CryptoKitties.

Curiously, scrolling down the rankings of the site does not seem to mention the 333 ETH. I wonder why it could be? The warning posted on the specific page 333 ETH gives some suggestions.

"Notice: we have received reports of users that this DApp does not work as expected", reads the note highlighted by the status of DApp. "Given the ponzi nature and implementation problems of payments in the contract, this can only go wrong.

Here's how apparently 333 ETH works. You buy, and then immediately 17% of your ether is deducted for things like "Payment of the day-to-day investor transfer payment fund" (1%), "Payroll" (2%), "technical support" (3%) and "Marketing" (11 percent).

  Nothing can go wrong.

Image: screenshot / 333 eth

With me so far? So, presumably every 24 hours, you will receive a 3.33% payment on the 83% of your initial purchase. All participants receive this payment every 24 hours. The more you put it at the beginning, the higher your daily return.

Sounds quite legitimate

Of course, because it works, more and more people need to buy – because shortly after people stop the transfer of ether to the portfolio in question, the funds will dry up. But you have nothing to worry about, as people will surely continue to spend money on this scheme. After all, 11 percent of your ether went to marketing.

According to 333 ETH, from Friday afternoon 1,528 people had somehow managed to convince themselves that participating in this asylum was a good idea. Which, we should emphasize, it is not.

Not a nice look

The fact that one of the most popular DApp appears on his face is a real Ponzi scheme does not bode well for the future of decentralized apps. Still, the prospect may be even worse than initially suggested by this particular inconvenience.

Remember when we said that 333 ETH was just behind CryptoKitties in its active daily count of users? Yes, well, according to State of the DApps, 333 ETH has only 495 DAUs. CryptoKitties has only 521.

A flourishing decentralized economy is not like this.

But hey, maybe you can change it! Just convince everyone you know to buy the non-a-scam that is 333 ETH, and our future collective DAFF blockchain will grow along with your riches. Nothing can go wrong.

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