In this review of Forsage we explain why you absolutely have to stay away from this investment scam.
What is Forsage
Forsage is presented as an international crowdfunding platform based on blockchain. Its official website says that investing with Forsage carries zero risk, because the system runs on smart contracts on the Ethereum network.
In other words, Forsage runs on public software deployed on a blockchain, which means that anybody can check it a make sure that is going to do what it is supposed to do, which is distributing money among members.
Crowdfunding platforms are supposed to gather money for specific projects, however Forsage is not supporting any specific projects, it is just about itself and making money to its members.
The minimum investment with Forsage is 0.05 ETH (ether).
Is Forsage legit?
No, Forsage is not legit. Because in reality it is not a crowdfunding platform, it is just an illegal financial game, sort of a pyramid.
The characteristics of the system make Forsage an investment service. Which means that it has to be regulated, it has to be authorized in every country it wants to have members in.
But the Securities and Exchange Commission from the Philippines has pointed out that Forsage has no license whatsoever, it is an unauthorized and illegal investment service. Deposits in this system are not covered by any insurance and are at great risk.
Let’s put it straight, Forsage is a scam. It does not matter that it runs on blockchain technologies, it does not matter whether it is decentralized, because it still is a pyramidal financial game that is going to collapse and lose a lot of money to a lot of people.
Cannot be without risk
One huge lie told by Forsage is that investing with this system is without risk. It is not true, and it cannot be true.
First of all, are you able to study the smart contract, understand the code and be sure there are no loopholes for the creator to take all the money out of the system whenever he wants? The vast majority of people certainly can’t do that.
Therefore, you can’t be certain that money won’t disappear from Forsage in a blink of an eye.
Secondly, Forsage still is a pyramidal financial game, it is not a real business. Forsage depends exclusively on members’ deposits, there is no other money coming into the system, no real profits are generated.
And what happens when deposits slow down or even stop? Forsage will stall, there will be no payouts. And if you think that at that time you will be able to take at least your deposit out, you are wrong, because that money will be gone. Your deposit will be used to pay profits to people above you, it won’t stay in the system for you to withdraw.
This is why Forsage is still extremely risky, no matter the technology it uses. Because it is based on a scam scheme that has been used for hundreds of years and that always fails in the end.
Can put you in jail
When we warn against Ponzi schemes and other scams like Forsage, people often say that they will try it, because they could make some profits before it collapses. They are willing to take the risk.
And they often don’t want to hear that if they make profits, it means that somebody else will have to lose money. In other words for a few people to make money in scams like Forsage, a lot of people have to get scammed and lose money.
But there is another important thing you should be aware of when considering putting your money in Forsage. As the SEC pointed out, Forsage is an illegal investment service, and anybody promoting illegal investment services can face criminal charges and jail time.
And because you can’t make money in Ponzi schemes like Forsage without promoting it and enrolling other people in the structure below you, you can’t make money with Forsage without conducting criminal activities.
In other words, participating in Forsage will force you to do things that could backfire and put you in jail. So, think twice before investing with scams like this one.
Forsage is sure to collapse
Since Forsage is a pyramidal financial game that just plays with money that people deposit, it is sure to collapse. It is only a matter of time. It can take hours, days, months or in rare cases even years, but it is going to collapse, it is given by its nature.
Do you want to invest into a scheme that is sure to go down, while you just don’t know when it happens? Again, think twice, not only you risk losing everything you invest, you also could be prosecuted.
How Forsage really works
It is very important to emphasize that Forsage does not generate any real profits. It is a pyramidal structure. People at higher levels of the pyramid share money that was deposited by people at lower levels.
The longer such a scheme runs, the more it needs on deposits in order not to stall. Forsage inevitably will stall, it is just a question of when, not if.
People just put money in Forsage in the hope that more people will do the same after them. In other words, people joining the system hope they will be able to take money from people that join after them. Which is flawed. Because if you join Forsage, you basically want to take other people’s money for nothing, without work, without giving them anything in return.
Stay away from Forsage!
We have given you several reasons to stay away from Forsage. The unfortunate thing is that since it uses a cryptocurrency for payments, you have no way to get your money back through a refund if you already invested in it.
You just have to wait and hope that Forsage does not collapse before you get your money back. But even if you get your money back, don’t forget that it is a zero-sum game, there will always be losers somewhere down in the structure. People will get scammed.
So, the best thing you can do is to stay away from Forsage and never invest anything with this scam.
Forsage review conclusion
Forsage is a pyramidal scam that the financial regulator SEC has warned against. Participating in Forsage could make you face criminal charges. Stay away from it!
For trading and investing you should always use regulated companies only. If you are interested in trading cryptocurrencies or other assets, you can try a free demo account.
With virtual money you will be able to try everything and see your results. Please be sure to first understand the risk, if you decide to invest real money.