Ethereum’s Price Action Is Being Dictated by a Pyramid Scheme: Investor
According to Dovey Wan, a founding partner at Primitive Capital, Ethereum’s price action is likely being dictated by a Ponzi scheme/pyramid scheme called “Forsage”:
According to on-chain data, millions of dollars worth of capital is being sent to the Forsage contract. On average, $3.5 million has been sent to the contracts each day over the past two months.
Forsage purportedly is a classic crypto pyramid scheme with a focus on the Phillippines. In fact, the Securities and Exchange Commission (SEC) of the nation has already issued a warning about the scam:
Wan believes that if this Ethereum pyramid scheme collapses or slows that it would pose the “biggest bear case for ETH” at the moment.
A report by a trader who analyzed the on-chain data suggests the scam operators have obtained $200 million worth of Ethereum over recent months.
Strong Fundamentals Remain
Ethereum’s fundamentals remain strong, analysts say.
Real Vision chief executive Raoul Pal remarked that while BTC is his primary investment at the moment, he is liking Ethereum at the moment and sees it potentially outperforming BTC:
His sentiment comes down to decentralized finance. He has said on multiple occasions that this use case could propel Ethereum adoption much higher than it is now.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Investor: This Pyramid Scheme Is Keeping the Ethereum Price Afloat At $350
Originally from Bitcoinist.com https://ift.tt/35cGGc8
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.