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 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.
EtherChain pays a 10% referral commission on funds invested by personally recruited affiliates.
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).
EtherChain affiliate membership is free.
To participate in the attached income opportunity a minimum 0.1 ETH investment is required.
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.