Etherz Review: Smart-contract Ponzi with token exit-scam
Etherz provides no information on its website about who owns or runs the company.
Etherz’s website domain (“etherz.io”) was privately registered on July 1st, 2020.
At the time of publication Alexa estimates 85.7% of traffic to Etherz’s website originates out of India.
This strongly suggests whoever is running Etherz is based out of India.
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.
Etherz has no retailable products or services, with affiliates only able to market Etherz affiliate membership itself.
Etherz’s Compensation Plan
Etherz affiliates invest ethereum on the promise of advertised returns, paid through a 2×16 matrix.
A 2×16 matrix places an Etherz affiliate at the top of a matrix, with two positions directly under them.
These two positions form the first level of the matrix. The second level of the matrix is generated by splitting these two positions into another two positions each (4 positions).
Levels three to sixteen of the matrix are generated in the same manner, with each new level housing twice as many positions as the previous level.
Each level of Etherz’s matrix functions as a payment tier. Affiliates buy into the tier, which qualifies them to receive payments from affiliates who buy in after them.
Payments across all sixteen Etherz matrix payment tiers are as follows:
- level 1 – invest 0.03 ETH and receive 0.03 ETH from 2 affiliates (0.06 ETH)
- level 2 – invest 0.05 ETH and receive 0.05 ETH from 4 affiliates (0.2 ETH)
- level 3 – invest 0.08 ETH and receive 0.08 ETH from 8 affiliates (0.64 ETH)
- level 4 – invest 0.23 ETH and receive 0.23 ETH from 16 affiliates (3.68 ETH)
- level 5 – invest 0.84 ETH and receive 0.84 ETH from 32 affiliates (26.88 ETH)
- level 6 – invest 1 ETH and receive 1 ETH from 64 affiliates (64 ETH)
- level 7 – invest 2 ETH and receive 2 ETH from 128 affiliates (256 ETH)
- level 8 – invest 4 ETH and receive 4 ETH from 256 affiliates (1024 ETH)
- level 9 – invest 8 ETH and receive 8 ETH from 512 affiliates (4096 ETH)
- level 10 – invest 16 ETH and receive 16 ETH from 1024 affiliates (16,384 ETH)
- level 11 – invest 32 ETH and receive 32 ETH from 2048 affiliates (65,536 ETH)
- level 12 – invest 64 ETH and receive 64 ETH from 4096 affiliates (262,144 ETH)
- level 13 – invest 128 ETH and receive 128 ETH from 8192 affiliates (1,048,576 ETH)
- level 14 – invest 256 ETH and receive 256 ETH from 16,384 affiliates (4,194,304 ETH)
- level 15 – invest 512 ETH and receive 512 ETH from 32,768 affiliates (16,777,216 ETH)
- level 16 – invest 1024 ETH and receive 1024 ETH from 65,535 affiliates (67,108,854 ETH)
Etherz affiliate membership is tied to a minimum 0.03 ETH investment.
Full participation in Etherz’s income opportunity costs 2048.23 ETH.
Etherz is a simple smart-contract Ponzi scheme.
New affiliates sign up and invest 0.03 ETH or more. This money is paid to an affiliate who joined before them (typically but not always the recruiter).
In turn, the affiliate qualifies to receive payments from those recruited after them.
Through this business model, Etherz combines elements of Ponzi and gifting schemes.
As with all such schemes, sustainability is tied to constant recruitment of new affiliates feeding into the 0.03 ETH level of the matrix.
By nature of ethereum payments doubling each level, most of the big money moves around the upper matrix levels.
Positions preloaded by Etherz anonymous admins are placed on these levels first, thus ensuring they ultimately receive the majority of funds invested.
A few early adopters will receive what’s left, with the majority of Etherz affiliates ultimately taking a loss.
As per Etherz’s website, the exit-scam of choice appears to be an ERC-20 shittoken.
Given the original smart-contract runs on ethereum, I imagine when the time comes Etherz’s owner(s) will simply launch a new scheme with their in-house token.
Whether that materializes or they simply just disappear remains to be seen.
Either way Etherz affiliates are getting scammed.
Well, well, well… another one promoted by Shohan Bowala.
The owners from Etherz are three Amerikan citizens that are currently running another scam and are being procecuded by Amerikan authorities!!!
There is a huge legal investigation started against these three that stole millions off Dollars in short time period.
I assume you mean prosecuted. If that was the case, where is the evidence?