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Report: PlusToken-Like Ethereum Ponzi Could Dump ETH Price

An ETH-based Ponzi scheme might cause serious problems for its price, according to an industry expert.

The post Report: PlusToken-Like Ethereum Ponzi Could Dump ETH Price appeared first on CryptoPotato.

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The whole fever of DeFi and high-risk investments may soon turn into Ethereum’s worst nightmare, and those responsible for this debacle may not be the yield farmers.

Rather, it could be the participants of a giant investment plan cataloged as a Ponzi/MLM scheme by several experts and authorities around the world.

For those unfamiliar with the situation, Forsage is a high-risk project (financially and legally) in the Dapp ecosystem. Like other sad examples in the crypto industry such as Bitconnect and Onecoin, it promises people quite attractive returns, which become even more attractive as more people enter the scheme.

What is Forsage?

Basically, Forsage works like this:

  • Someone pays 0.05 ETH to join the project.
  • The link to Forsage is shared; for each registration, a commission of 0.025 ETH of the 0.05 ETH entry fee goes to the link’s owner.
  • The remaining 0.025 ETH is sent to higher levels of the pyramid, with most of the funds going to the anonymous positions at the top of the scheme, perhaps the pyramid scheme’s creators.

But in case of an eventual breach of confidence, the pyramid can no longer be sustained, and investors wanting to cash out, the price of Ethereum could fall to new minimums. Dovey Wan, the founder of Crypto Asset Holding Company “Primitive Ventures,” is convinced of this theory, as she reported on the scheme.

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Why Could it be Dangerous for Ethereum?

The crypto expert has been following Forsage’s behavior and shared her impressions with her followers. In the last 30 days alone, Forsage’s smart contract has received $35.2 million in ETH. Still, a look at the historical data shows that the total volume of ETH injected into the contract has been decreasing — which is a warning sign for any Ponzi scheme near collapse.

etherscan_address_forsage_holding
Forsage Contract Holding. Source: DappRadar

Forsage does not have an identifiable team, nor does it establish any way to determine responsibility if something goes wrong.

“Each person’s success depends on themselves,” says the project’s website, “There are no risks on the Forsage platform. You just need to invite one person to recoup your initial membership expense.”

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Source: https://cryptopotato.com/report-plustoken-like-ethereum-ponzi-could-dump-eth-price/

Blockchain

Research Reports ‘Altseason’ Upon Us, But Not For XRP or EOS

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In its latest ‘State of the Network’ bulletin, industry data provider Coin Metrics has delved into altcoins and their impressive performance so far this year.

It acknowledged that many of the hot altcoins that surged during the 2017 crypto boom are now ‘dead and gone’, and have been replaced by a new breed of DeFi assets. It added that with new capital flowing into Bitcoin and Ethereum, some of that money may start flowing into altcoins.

The report acknowledged that institutional investment has largely been behind the current rally and institutions are very wary of altcoins.

“Altcoin investing is largely considered a retail phenomenon. Similar to penny stocks, it’s often driven by individual investors looking for outsized gains.”

XRP and EOS Missing The Party

Looking at returns since the beginning of December 2020, Bitcoin and Ethereum have outperformed most other Layer 1 blockchains, it noted. However several high-cap crypto assets have also performed well hitting their own all-time highs.

There are two notable exceptions to this trend; Ripple’s XRP and Block.one’s EOS.

The glaring red charts for these to former darlings of crypto show that XRP has lost 54.6% since December 1, and EOS has dumped 7.5% over the same period.

Ripple’s problems started when it finally lost the battle with the SEC and the selloff began. Since its late November high of almost $0.70, XRP has dumped almost 60% to today’s sub $0.29 prices. There have been reports of Ripple executives selling their stashes, while Grayscale dissolved its XRP Trust as confidence in the company dwindles.

Block.one’s problems have not been as bad, but they have had them. Company CTO Dan Larimer announced his resignation earlier this month and there has been very little on the development or product front for the project.

Over the past year, EOS has lost 23% on a chart that has been flat for months. Since its February 2020 high of $5.40 it has dumped 50%, and since its giddy all-time high in April 2018 of over $22, EOS has been smashed 87%.

Top Altcoins so Far in 2021

Those that are enjoying the altseason sun include Polkadot, Binance Coin, Chainlink, and of course Ethereum, though it shouldn’t really be termed an altcoin any longer.

Coin Metrics highlighted Cardano, Decred, and Dogecoin as three that have made three figure gains since December one, outperforming Bitcoin itself.

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Source: https://cryptopotato.com/research-reports-altseason-upon-us-but-not-for-xrp-or-eos/

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Perpetual Protocol emerges as sixth-largest DEX after just one month

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Perpetual Protocol, a DeFi project offering decentralized perpetual contracts using the layer-two Ethereum scaling solution xDai, has emerged as the sixth-largest DEX by weekly trade volume after operating for only one month.

Based on data from Dune Analytics shared by Perpetual Protocol, the DEX’s weekly trade volume of more than $299 million would rank the project above the likes of Synthetix, dYdX, and Kyber, and below Balancer.

The milestone was shared in a blog post celebrating the project’s first month of operation — a period in which the DEX drove more than $500 million in total volume and generated more than $500,000 in trading fees.

All trading fees generated by the protocol are currently sent to an insurance fund designed to secure the protocol, with the project planning to divert 50% of fees to PERP stakers once its staking pool has launched.

In the blog post, Perpetual Protocol noted that it spent only $183 to execute 179,000 transactions as gas fees on xDai are just one-one-hundredth of those on the Ethereum mainnet. With Perpetual Protocol covering the gas fees of its traders, the DEX would have had to pay out $18,300 in fees if it was operating directly on Ethereum.

XDai is one of several L2 scaling solutions that are offering an alternative to the heavy fees associated with operating directly on the Ethereum mainnet, with Synthetix recently launching the first stage in its transition to optimistic roll-ups.

Looking ahead, Perpetual expects to introduce limit order functionality during the first quarter of 2021, and will also launch staking in February.

Decentralized exchanges emerged as a cornerstone of the crypto ecosystem during DeFi’s Q3 2020 boom, with leading DEX Uniswap now processing almost $1 billion in volume each day and regularly surpassing many major centralized exchanges by trade activity.

Despite the booming volume, the DEX sector is currently dominated by a handful of platforms — with roughly half of the combined DEX trade activity taking place on Uniswap, and 90% of combined volume transpiring on the four largest platforms.

DEX market share: Dune Analytics

Source: https://cointelegraph.com/news/perpetual-protocol-emerges-as-sixth-largest-dex-after-just-one-month

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TA: Ethereum Corrects Lower, Why Dips In ETH Remain Attractive

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Ethereum traded as high as $1,437 before starting a downside correction against the US Dollar. ETH price is approaching a key support at $1,340 and $1,320.

  • Ethereum surged above $1,400 and traded towards the $1,440 zone.
  • The price is currently correcting lower from $1,437, but it is well above the 100 hourly simple moving average.
  • There is a major declining channel forming with support near $1,340 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct further, but the price is likely to remain stable above $1,340 and $1,325.

Ethereum Price is Correcting Gains

Yesterday, we saw a sharp increase in Ethereum above $1,350 and $1,400. ETH price traded above the $1,420 resistance, and traded as high as $1,437 before starting a downside correction.

There was a short-term downside correction below the $1,400 level. There was a break below the 23.6% Fib retracement level of the upward wave from the $1,215 swing low to $1,437 high. Ether is now trading below the $1,380 and it is approaching a couple of important supports at $1,340.

Ethereum Price

Source: ETHUSD on TradingView.com

There is also a major declining channel forming with support near $1,340 on the hourly chart of ETH/USD. An immediate support is near the $1,325 level, where the bulls are likely to take control.

The 50% Fib retracement level of the upward wave from the $1,215 swing low to $1,437 high. If there is a downside break below $1,325, there are chances of a drop towards the $1,280 level. The 100 hourly simple moving average is also near the $1,280 support zone. Any more losses could lead the price towards the $1,250 and $1,220 support levels.

Fresh Increase in ETH?

If ethereum remains stable above $1,280 support zone, it could start a fresh increase. An initial resistance is near the $1,400 level and the channel upper trend line.

A close above the channel resistance could open the doors for more gains towards the $1,440 level. A clear break above the $1,440 zone could clear the path for a push towards the $1,500 resistance zone in the coming sessions. The next key target could be near the $1,550 and $1,580 levels.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now slowly gaining pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is correcting lower below the 50 level.

Major Support Level – $1,280

Major Resistance Level – $1,400

Source: https://www.newsbtc.com/analysis/eth/ethereum-corrects-lower-eth-1280/

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