Forsage Affiliate 1 year ago
iForsage.com #Business

Is Forsage Really a Scam? Here's Our Thoughts.

If you are like most people, one of the first things you’ll do when you begin researching Forsage, or another opportunity to earn money online, is a quick internet search.

Comments:

You don’t have to look far to find articles written about what the SEC has to say about Forsage, nor do you have to do much digging to find someone calling it a pyramid scheme.

I had these same concerns myself at first, and wanted to be 100% comfortable before moving forward with Forsage, so I read their entire website, watched the marketing video, went and did a bit of a refresher course on the definition of a pyramid scheme and what red flags I should be aware of.

I’d like to share the definition of a pyramid scheme here, as well as well as highlight the red flags that characterize a pyramid scheme pyramid:

A pyramid scheme is defined as a form of investment (illegal in the US and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.

Another term you might encounter is ​Ponzi scheme, which is defined as a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

I do want to go ahead and address both of these definitions now, as well as why I do not believe that Forsage falls into either category.

- A) Forage is not an investment nor does it claim to be.

- B) You do not just recruit two members, you can recruit an indefinite amount of recruits

so long as consumer demand gives people the incentive to join the platform, which I personally believe could be for a very long time - I encourage you to exercise your own judgement here as well. However, you are not required to recruit anyone at all and can still earn money through the passive means of “spillover,” where you are rewarded with commissions systematically as part of the algorithm in some circumstances. Spillover is not guaranteed, but it is part of the algorithm.

- C) With Forsage, returns are not given prioritized to the early participants, but rather only two to four levels deep (one level deep on the x3 platform, two levels deep on x4 and four levels deep with xGold). So the people that joined earlier on (February of 2020) have no greater opportunity for continued earnings than someone who joins today. All earnings depend on the recruits directly under you and the recruits directly beneath them, that is it. There is nobody at the top that is at an advantage or preying on the people at the bottom.

 The following are a list of red flags that are highlighted on the US Securities & Exchange Commision (SEC) website for investors, ​Investor.gov​. Many Ponzi schemes share common characteristics. Look for these warning signs:

- High returns with little or no risk: ​Every investment carries some degree o frisk ,and investments yielding higher returns typically involve more risk. Be highly suspicious of any “guaranteed” investment opportunity.

- On the Forsage website you may see the words “zero risk” and for me that was a red flag and I wanted to understand what they meant by it - after digging a little deeper, I realized that they are not referring to the risk of the price of Ethereum dropping, because obviously that is a risk that goes along with any currency, values fluctuate up and down. The risk they are referring to is the risk of someone else accessing your Ethereum wallet ​through​ Forsage and stealing your money. There is zero risk of that because Forsage does not handle your money, there is no middle man. So when they say “zero risk,” this is what they mean, that they’ve eliminated the risk of “people at the top” dipping into your funds.

- Overly consistent returns​: I​ nvestments tend to go up and down over time. Be skeptical about an investment that regularly generates positive returns regardless of overall market conditions.

- Forsage does not guarantee positive returns on the value of Ethereum or guarantee that you will earn money with Forsage. Nothing is guaranteed. However, the program is designed where if you do the work of sharing the opportunity of the platform with others and they join with you as their sponsor, you will earn money. How much you earn depends heavily on how active your team members will be.

- Unregistered investments:​ Ponzi schemes typically involve investments that are not registered with the SEC or with state regulators. Registration is important because it provides investors with access to information about the company’s management, products, services, and finances.

- Forsage is NOT registered with the SEC, and you will be able to find information about this online, specifically what the Philippine SEC has to say on the subject, which I will go into further detail about below. The ​reason​ Forsage is not registered with the SEC is because it is NOT an investment in the traditional sense that the SEC defines investments. Mainly because Ethereum is a cryptocurrency, not a security required to be registered with the SEC, but also because with Forsage you are not buying Ethereum and waiting on it to increase in value, as you would with a traditional investment. You are buying Ethereum and actually ​using ​it as currency. There is a big difference. You are recruiting others to come into the “world” of Ethereum and trust it as a currency, therefore increasing the value of Ethereum over time. So whatever Ethereum you own likely ​will increase in value, but you did not buy it for that sole purpose, rather you bought it to use as currency on the Forsage platform where the smart contracts that control the platform are held.

 - Unlicensed sellers:Federal and state securities laws require investment professionals and firms to be licensed or registered. Most Ponzi schemes involve unlicensed individuals or unregistered firms.

- This one goes hand in hand with the one above about unlicensed investments - we are not investing, nor are we selling investments, therefore Forsage and it’s members do not need to be registered with the SEC, hence the reason the US SEC has not issued action against Forsage.

- Secretive, complex strategies​: Avoid investments if you don’t understand them or can’t get complete information about them.

- I will say that for me and for many others, the concept of Forsage was a foreign one and one that I had to do some research on before I felt comfortable about jumping on board with, because I feel the need to understand how something works before I get started. However, the platform is very transparent and very well-explained on the Forsage website, and one can also find an abundance of information that members of the Forsage community make available peer-to-peer, online, etc. I will repeat the premise of Forsage here, for those that may still not have a firm understanding of the concept. Forsage is a platform housed on the internet that runs off of an algorithm and has no employees, where you can buy 12 levels of smart contracts (15 levels on the xGold platform) using the currency Ethereum - the more people that join Forsage, the value of Ethereum goes up, and, directly proportional to your recruits and their level of activity, the more Ethereum you earn - that’s it, in a nutshell. Nothing overly complicated, just a new way to make money in the crypto world, and one that most of us just need to do a little research into so that we can fully understand it.

- Issues with paperwork: ​Account statement errors may be a sign that funds are not being invested as promised.

- Paperwork is not an issue with Forsage, registration is simple and straight forward, I have not heard of anyone encountering this sort of issue.

- Difficulty receiving payments​: Be suspicious if you don’t receive a payment or have difficulty cashing out. Ponzi scheme promoters sometimes try to prevent participants from cashing out by offering even higher returns for staying put.

- You have complete control of your Ethereum wallet and can convert it back to USD, or whichever currency of choice, and transfer it to your bank account at any time.

Another government website article at ​Consumer.ftc.gov​ highlights the following warning signs to look out for that may indicate you are dealing with a pyramid scheme:

- Your income is based mainly on the number of people you recruit, and the money those new recruits pay to join the company — not on the sales of products to consumers.

- With Forsage you can earn money from recruiting, but that is not the only way to earn money - you can also earn money from a concept called “spillover” where you are rewarded with commissions systematically as part of the algorithm if your sponsor or someone else on their team is surpassed in Levels by one of their own team members. With Forsage your income is NOT directly proportional to the  number of people you recruit.

- There are examples of members of Forsage with as few as 10 team members that have earned more money than people with hundreds of team members, because even if you aren’t super active at recruiting but happen to have one or more team members that are, you still benefit from that up to four levels below you.

- And lastly, we are selling smart contracts that govern how our commissions are distrusted for the recruiting that we are doing, so while it is a digital product, it is still a product, and a valuable one at that.

- You’re required to buy lots of inventory

- You are not required to buy anything with Forsage other than your very first level 1 smart contract to get started on the platform.

- You’re forced to buy other things you don’t want or need just to stay in good standing with the company

- This is not the case with Forsage.

Statement issued by the Philippine SEC

I definitely want to provide the link to their website where the statement is available for you to review, as well as give my interpretation of why they issued a statement in the first place.

If you read what the statement has to say, they do not say that Forsage is a pyramid or a Ponzi scheme, but rather that Forsage is not registered with the Philippine Securites and Exchange Commission. They issue a cease and desist notice to Forsage, but their main concern seems to be that Forsage is not registered with them, and to me that seems to mainly be related to the fact that people are making money so they feel like Forsage should be registered. However, as I explained above, Forsage is not an investment opportunity. We are not investing in Ethereum. We are using Ethereum as currency to buy smart contracts. There are no securities involved, hence the reason Forsage does not legally have to be registered with the Securities & Exchange Commission.

You can read their full statement by following this link:

https://www.sec.gov.ph/cdo-2020/forsage-and-forsage-philippines/

I personally find it reassuring that this statement was issued in September 2020 and no other countries have issued similar statements in the time that has passed since then.

Food for Thought

One way that helped me see and understand the beauty of Forsage was to compare it to the Social Security System, the one legalized fund that the majority of us pay into (involuntarily, I might add) where the contributions of later members truly do fund the payouts to the earlier contributors.

I think we all know that social security checks are meager and that nobody is getting rich off of this government program because of how the “middle man” handles the funds.

However, if there were a similar plan, like Forsage, designed by the people for the people, that exists beyond any centralized currency, and the incentive to contribute more is substantial and new members seem just as enthusiastic about the opportunity as the earlier members, then doesn’t it make sense to do our due diligence to understand how it works and determine whether it might be a legitimate opportunity? I believe so.

People seem to get their feathers ruffled when they think of applying a similar strategy with Forsage, except there is no mismanagement of funds and nobody forcing you to participate, you simply buy in for a low one-time price and then see how far the snowball will go. Sure, it will eventually get so expensive that only rich people can participate in the program - but does that mean we shouldn’t benefit from it now while it’s still affordable? I certainly don’t see why not.

In Conclusion

As in all things, it is important to do your research and exercise your own best judgement for your situation. It is not my desire, nor the desire of any of the other members I know on this platform, to take advantage of anyone.

I do believe that because of the horror stories of people that have been involved in pyramid or Ponzi schemes, and especially to be able to readily find people online who will accuse Forsage of being a scam, that it can stir up a lot of fear of the unknown, but I personally find that fear of the unknown is best addressed by educating ourselves with the facts.

So by all means, look at all the facts and use your best judgment to decide if Forsage is for you or not.

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