Ethereum Scam Site Warning - Project Ethereum
Cryptocurrency scams are very easy to come by these days. Some projects even go as far as branding themselves as an initiative closely tied to an existing cryptocurrency. Project Ethereum, for example, is one of those projects that will raise a lot of eyebrows among Ethereum users. It does not appear any Ethereum developer has ties with this project, and the entire concept looks like a clear MLM scheme.
PROJECT ETHEREUM IS NOT THE ETHEREUM YOU ARE LOOKING FOR
It has to be said, the name Project Ethereum is quite clever. This is especially true when trying to trick novice users into investing in this MLM scheme. Considering how the official Ethereum’s website is EthereumProject.com, it is not hard to see why the two could get confused at some point. It appears the people behind this new MLM want to take advantage of the possible confusion.
Project Ethereum has very little to do with the development of the Ethereum ecosystem, though. Instead, the project positions itself as a “gateway to spread wealth and humanity around the world.” A noble thought, although it is still a multi-level marketing matrix, and there will be very little humanity-spreading involved. It is all about turning money into more money. Not that there is anything wrong with that, but this byline can be seen as dishonest advertising.
Even though Project Ethereum claims to have a cause, it is highly doubtful any of the money generated will go to a good cause. The team claims to have strong ties with Choice Humanitarian. This seems like a strange relationship for a cryptocurrency MLM scheme, but it is important to try something new every now and then. Even so, the correlation between this good cause and the MLM scheme we are looking at remains utterly vague.
One possible explanation can be found in the project’s FAQ. Users who receive the first two donations in each level will need to upgrade their level. It also appears 15$ of top Corporate spot donations will be donated to Choice Humanitarian as well. There is also a reference to Humanitarian Expeditions, which costs $2,000 per person plus plane tickets. Using a good cause to promote an MLM matrix is quite distasteful, but it appears the company is getting away with this method without repercussions.
It is important to note multi-level marketing schemes are not illegal by any means. Most people may never see a profit from investing in such a matrix, though, unless they put in quite a few hours of work. The bigger issue here is how the project uses the “Ethereum” name in the hopes of getting a lot of attention. Moreover, it does not appear Choice Humanitarian has any ties with Project Ethereum, according to their website. The marketing tactics used by this MLM are rather shady, which raises some concerns. Moreover, there are concerns over “Ethereum” being trademarked as well.
For now, it is best to be very wary of Project Ethereum and their quest to attract investors. A lot of people can get burned from getting involved in this MLM program. The project’s intentions are unclear, and there seems to be some wrong information being spread to the masses. Rest assured there will be some people defending the company on the internet and possibly in the comments below this article. Always do your own research before making any investment whatsoever.
Source: The Merkle
JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.