EtherChain Review: ETH smart contract Ponzi scheme
EtherChain provides no information on its website about who owns or runs the company.
EtherChain’s website domain (“etherchain.io”) was registered on June 1st, 2020. Ether Chain is listed as the owner, through an incomplete address in Skane, Sweden.
Further research reveals EtherChain affiliates citing Andreas Kartrud as CEO and founder of the company:
I was able to independently verify this via Kartrud’s social media profiles:
Andreas Kartrud is a serial scammer. Over the years BehindMLM readers have pegged him promoting Shopping Sherlock, SwissCoin, Dominant Finance, WoToken, Up2Give, KryptoGlobe, 1 Click Trading and XOXO Network.
Kartrud is believed to be operating EtherChain out of Sweden.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
EtherChain’s Products
EtherChain has no retailable products or services, with affiliates only able to market EtherChain affiliate membership itself.
EtherChain’s Compensation Plan
EtherChain affiliates invest ethereum on the promise of an advertised 310% ROI, paid out 1% daily for 310 days.
Referral Commissions
EtherChain pays a 10% referral commission on funds invested by personally recruited affiliates.
Residual Commissions
EtherChain pays residual commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
EtherChain caps payable unilevel team levels at fifteen.
Residual commissions are paid as a percentage of daily returns paid to affiliates placed in the unilevel team as follows:
- level 1 (personally recruited affiliates) – 30%
- levels 2 to 5 – 10%
- levels 6 to 9 – 8%
- level 10 – 8%
- levels 11 to 15 – 5%
Top Referrer Pool
EtherChain takes 5% of invested funds and places it into the Top Referrer Pool.
Each day the Top Referrer Pool is distributed to EtherChain’s top recruiters (based on invested amounts).
Joining EtherChain
EtherChain affiliate membership is free.
To participate in the attached income opportunity a minimum 0.1 ETH investment is required.
Conclusion
Like many serial scammers before him, Andreas Kartrud has realized that running scams is more profitable than promoting them – even as a top promoter.
And so we have EtherChain, a barebones Ponzi scheme running on the ethereum blockchain.
That Kartrud is running his scam on “the blockchain” is neither here nor there. EtherChain is a Ponzi scheme and illegal the world over.
As with all MLM Ponzi schemes, once affiliate recruitment dies down so too will new investment.
This will starve EtherChain of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
Update 27th September 2020 – EtherChain has officially collapsed.
What a joke, Site down again, 3rd time now, in as many weeks.
Message reads “Maintenance”
C
Apparently it went down on Friday for “maintenance and transition to the new contract”.
Synchronization obviously takes 48 hours. Are they doing it manually?
On the request to set up a call with the CEO, Kartrud replies “there is no ceo or company, just a creator and dev team”.
This comment on one of Kartrud’s all “shutting up the haters” posts is very telling:
Didn’t learn much, huh?
As well as serial scammers, there are serial victims.
This is the absolute dumbest MLM scheme I’ve ever seen. Doesn’t even have any products.
The owner himself literally explains how they are all getting scammed: Put 100% in, get 310% out.
The 210% comes from other people who put their 100% in. And that is the whole project.
Have you actually done any and I mean any due diligence on Etherchain? Your facts are completely screwed up.
There are no affiliate level to 15! You do NOT earn any benefit from other people apart from just your own referrals. So there is only one level that you benefit from.
The same as getting a fee for referring someone to a business. Just ONE level. 2) Have you even taken the time to study the VERIFIED contract on Etherscan? Cause if you did, you would never have published such a incorrect and flawed review in the 1st place.
Telling me a lot about any other reviews you might have published.
I really dont understand how people can post reviews before experiencing the business beforehand and calling it a scam that says alot about your intelligence.
I have been with etherchain since inception and what was promised i am receiving without any prejudice.
So please do due dilligence and get your facts together before you tarnish this amazing community fund.
Gawd, more “buh muh blockchain!” tragics who think the laws of mathematics don’t apply to them.
Let’s start with Pieter.
This is directly from EtherChain’s own website;
Gotta love dumbasses who don’t understand the scam they’re in.
Couldn’t give a fuck if your smart contract is vErIfIeD or not. Math is math and EtherChain is a Ponzi scheme.
Can somebody call an ambulance, Pieter’s going to need a new asshole. While we wait, next up is faiz.
You don’t need to lose money in a Ponzi scheme to identify a Ponzi scheme.
Whether you personally steal money or not is irrelevant to EtherChain being a Ponzi scheme.
Brain 404. Maybe when the paramedics get here we can get them to have a look at you too.
Seems Etherchain spawned a baby, Tronchain. And they are both controlled by Eclipcity, a blockchain platform.
What is this, a way of serializing scams? But muh smart contruct…
Unfortunately yeah, it’s easy as piss to hook up your script to another crypto and pretend it’s a new company.
Bit like launching USDScam, waiting till funds get low and then launching EURScam etc.
The cheapest way to do it is with your own shitcoin, but that’s a bit on the nose for most “BUH MUH BLOCKCHAIN! diehards.
And it’s game over.
Kartrud just posted the notice that “ETHERCHAIN was crippled by the The high GAS fees so much that the community stopped the growth and the balance in Ether Chain has now officially gone to 0”.
He claims no one will lose money, everyone will be refunded using money coming in through the admin fees in the TronChain he launched.
Oh, and he launched a third one, CyberChain…