Welcome to my Forsage review. If you are doing research and are asking yourself Forsage is a scam or legit, you are in the right place.
Forsage is one of the new touted money-making methods that is getting a good amount of attention. You might have found someone promoting it on YouTube or Facebook where it is seeing the most promotion. We have conducted a decent amount of research into the company and will share everything that I have uncovered about them in this review.
Forsage Review Summary
Forsage is essentially a gifting scheme that uses Ethereum as its base currency. The way gifting schemes work is that new members “gift” money to the highest ranking member, with the promise of that member eventually rising up the ranks to become a high ranking member and receiving those gifting benefits.
It works similarly to the pyramid model and the people who benefit are those at the top, while the newer members will most likely lose money. Gifting clubs have warnings about them from regulating authorities, including the US.
While most of the promotion you see is grossly overblown, with claims of thousands within months, that is not how things will work out for most people. I recommend avoiding opportunities that are made to sound like get rick quick schemes because they are never what is promised.
What Is Forsage
Forsage is a crytocurrency earning platform that uses a relatively new business model to let members earn residual income through smart contracts.
The company uses a matrix scheme, which is the exchange of a money or currency in the present, in exchange for a product as well as being put on a waiting list for a future product which will theoretically be worth more than what you initially paid.
The key person in the company is the developer and founder or Forsage, Lado Okhotnikov, who has a history in multilevel marketing
The domain for the website was registered in February 2020, so as of writing, the company is less than 6 months old.
There is virtually no information on the website for visitors so you have to sign up as a paying member to see what Forsage has to offer.
What is a smart contract?
As per the Wikipedia definition:
A smart contract is a computer program or a transaction protocol respectively, which is intended to automatically execute, control or document respectively legally relevant events and actions according to the terms of a contract, of an agreement or of a negotiation.
In simpler, you can think of it as being able to execute a transaction on the blockchain without a middle man. Kind of like the practical example of sending money to someone without bank being involved. The transaction is controlled automatically by a pre-written contract.
The idea is that the smart contract protects both the buyer and the seller, and nobody can run with anybody’s money.
So as far as Forsage goes, think of smart contract as the transaction that make payment or receive payment in, similar to an ETF in normal banking.
How Forsage Works
To be on Forsage, you have to have an ethereum wallet with at least 0.05 ETH (which is approximately $13 at the time of writing).
If you are new to using crypto, this can be a difficult process the wrap your head around.
A user-friendly crypto wallet is Metamask, which you can connect to your browser. It is fairly easy to use and they explain reasonably well how to use it before you download.
It will help you store & exchange your digital assets, and let you explore new applications on the decentralized web without having to enter your wallet address all the time. Just make sure that your computer is secure as once the info is stored on your browser, certain transactions can be executed without the need for the “password”.
You will have to have a wallet plugin installed on your browser if you are on a PC, or as an app if you are using your mobile phone.
By signing up and spending that 0.05 ETH, you will be signed up for the two compensation plans within Forsage, X3 and X4, at 0.025 ETH each.
You will then have to share your link with other people who will fall under you as your down line.
Forsage Compensation Plan
After you sign up, you are let into the dashboard where you will see a block with Forsage X3 and one with Forsage X4 under it.
The X3 block is for people that you recruit personally onto Forsage.
The compensation plan at work here is known as a cycler which we will explain below.
On the X3 block, you have slots that you unlock as you recruit people in multiples of 3. For example, when you first signup, the 0.025 slot is unlocked. Once you recruit 3 people, that slot is full is considered a cycle, triggering a commission.
The second block is called the X4 block, which is referred to as the community or team-building block. This plan is made up of people who are recruited by other members. This way, you can get paid by spillover from other team builders.
Instead of 3 referrals completing a cycle, it takes 4 to cycle on X4.
When signing and paying your 0.05 ETH, you are automatically signed up to level one of X3 and X4 at 0.025 ETH each.
There are different slots with in the each plan that increase with the amount of ETH you spend and how much commission you make. If you are on the lowest level, you can only make commissions from your referrals that for what they spend on that specific level.
If your referrals upgrade to a higher level that you are not, you will not get any commissions for cycles at that level. This encourages members to upgrade to the higher levels in hopes of not missing out on higher cycle commissions.
Being smart contract based theoretically means it the process is decentralized and there is nobody controlling the cryptocurrency that gets transferred. So if you are already at the top as a high ranking member, the moment the people beneath you make a payment, it is executed and you get those funds immediately with no middleman taking a cut or deciding when or how to pay you.
Have To Pay Before Anything – Forsage does not provide any information on how things work. Visiting the website takes you straight to a pay wall and you have to commit to paying that 0.05 ETH to see anything.
Quite complex – the whole process is quite complex for the average person. Even the signup process will require quite a bit if research if you aren’t already familiar with cryptocurrency and how to use wallets. It also requires you to be extra vigilant about security. Because of the decentralized nature of crypto, if someone gets hold of your sensitive information and takes your assets, nobody can do anything about it.
MLM type marketing – A typical hallmark of MLMs is the use of fear of missing out (FOMO) to make you buy more expensive packages. In the case of forsage, the higher packages are the slots that come at an increasing cost. So if you are at level 1 and somebody under you upgrades to level 2, you will not get that commission. In order to qualify for it, you yourself have to already be at the level that your referral has upgraded to.
Cycler – The cycler aspect of the compensation plans means that it takes more for you to make a commission. Instead of the more common model of getting a commission for every referral you recruit, in this case you have to recruit 3 people before you make your first direct commission.
Is Forsage A Scam
Forsage is a matrix scheme businesses that relies on you recruiting referrals to make money. Because this is technically not illegal, it means that no, Forsage is not a scam.
Would I recommend Forsage? Not if you don’t understand clearly what you are getting into.
They way that people promote these kinds of programs often an exaggerated account of how much you can make.
It works similar to a MLM, just with Ethereum as its base. If you read the terms for the platform, you should understand that it is based on recruiting people. So while you can make some money here, the stories of people making tens or hundreds of thousand in a few months are likely untrue and meant to mislead you.
There are currently no laws around naming these companies as illegal, but the US Federal Trade Commission and UK Trading Standards have issued public warnings about these sites and how easy it is to manipulate the model for fraudulent purposes.
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