In this review we explain how the Metfi scam works and why it is going to collapse.
What is Metfi
Metfi defines itself as a decentralized autonomous organization (DAO) that aspires to be the world’s nr. 1 metaverse and web3 incubator.
The main offer revolves about a huge APY on your crypto holdings. You have to buy Metfi NFTs, which are accompanied by MFI tokens. If you hold those tokens and don’t sell them, you can earn up to 1000% APY.
It means that in theory you should be able to multiply your money 10 times in a single year.
The question is, is Metfi legit? Can you really earn that much money in a passive way?
Let’s go straight to the point, Metfi is just an ordinary scam of the Ponzi type. It is an illegal scheme that is destined to collapse, the only question is when. The reason is that the yields are completely unsustainable.
How the scam works
Metfi is built around the concept of a Ponzi scheme. It means that it relies on people not withdrawing much and new investors pouring money in.
Nobody would care about Metfi NFTs if there wasn’t this financial product with the huge interest rate.
When you start a Ponzi scheme, you know that it will collapse one day. It is inevitable, because you bring no real value, you have no real product with an intrinsic value. You just have a financial pyramid that needs as few withdrawals as possible and as much new deposits as possible.
So Ponzi schemes come with different ways of motivating people to leave their money in the system, so that it can run as long as possible.
Metfi is doing it with its MFI token. If you hold and don’t sell it, you will earn yield. But it will be paid again in MFI tokens. Which means holding money “printed” from thin air is rewarded by more money printed from thin air.
According to Metfi’s official website the yield is fixed, which means that the MFI token has an infinite supply. That is a recipe for disaster, it is sure to collapse one day.
As soon as more people start cashing out and selling their MFI tokens, its value will start to fall and everything will collapse. Or maybe even sooner…
The MFI token fall
As we have just explained, the MFI token is minted out of thin air as fuel for the Metfi Ponzi scheme.
The only place you can trade the token is Pancakeswap, which is a decentralized exchange in the Binance blockchain.
These exchanges are based on liquidity pools that need people to provide liquidity. Have you ever heard of rug pulls in the crypto world? Most often they happen when scammers remove all the liquidity from the pool with their useless token.
The same thing can happen with MFI any time. Metfi is the issuer, so they can basically take any amount, dump it on the decentralized exchange and crash the value of MFI while de facto removing liquidity from all the pools.
How it is going to end
To sum up, the Metfi Ponzi scam is sure to crash, the only questions are when and how it will happen. We can’t know when, but we can say that the Ponzi will either stall and die or there will be a rug pull.
In any case you can be absolutely sure that no crypto project in the world will be able to generate you 1000% every year.
Remember Terra Luna and Celsius? Despite billions of dollars flowing through their projects they were not able to sustain 20% yearly and crashed.
Metfi review – Conclusion
Metfi is a typical Ponzi scam that is trying to hide behind worthless NFTs. It is going to crash and the MFI token will lose all its value, it is only a matter of time. That is why you have to stay away from it.
No cryptocurrency project can sustain hundreds of percent of yearly returns.