DApp Flagged As Fraudulent by Crypto MetaMask. The Ethereum ERC20 is the most popular platform for decentralized applications. Hence, the platform has hosted the best as well as the worst of dApps. 333 ETH, a widely-used decentralized application (DApp), however, developed on the Ethereum blockchain is labelled as “active scam” by cryptocurrency wallet MetaMask, reported Hard Fork on Sept. 28.
To retrieve 333ETH via MetaMask it pops up some caution message to visitors stating “Given the ponzi nature and payout implementation issues in the contract, this can only go wrong. Be careful!”
ETH 333’s “Business Model”
333Eth, a popular dApp on the platform that works on smart contract-powered “investment distribution” services to users and promises investors a daily return of 3.33 percent of their investment as long as people continue investing in the project. From its business model,this project promised investors that they would receive payment everyday. Hence, this is the mode of operation of known ponzis and targets the investors continually committed to the platform.
DApp Flagged As Fraudulent by Crypto MetaMask. The project which has 1,500 users has shown the signs of a Ponzi charging investors 11 percent fee in what it calls “marketing services”. Although, having rank among the most popular dApps on the Ethereum platform. Thus, encouraging them to bring in new users. There are other deductions made on investors’ deposits totaling 17 percent. In explaining the deductions, the website, however, stated that 3% of users’ invested funds will go toward “technical support”, 2% for “payroll”, and 1% for “Fund payment or investor’s payments transfer fees.”.
This project encourages that bigger deposits will lead to higher returns if they invested more. 333 ETH’s developers claim that currently, 1,602 people have made contributions to their “profitable” fund. A total of 2,354.62 ETH is deposited, an amount which is worth $510,000. This is according to the blockchain-powered smart contract’s creators.
There are many skeptics that think that Bitcoin and cryptocurrencies are Ponzi. Thus, the increasing association of decentralized applications such as 333ETH with Ponzi will only reinforce that notion.