Ponzi scheme on Ethereum
Over the past few months, the Ethereum blockchain has started to gain traction, even as ETH’s price fell. Lately, experts noticed a large uptick in transaction volumes and overall network activity.
It got to a point when last month, the fees those Ethereum users paid to use their network surpassed that of Bitcoin buyers. The average standard transfer for ETH in September was from $0.045 to $0.064. Meantime, Bitcoin’s endorsed next-hour confirmation fee was a mere $0.03. Nonetheless, this changed when one of the large contributors to this transaction fee explosion for Ethereum suddenly disappeared, like it never even existed. However, dozens of people paid for the
The details are unknown. It is unclear what truly happened to all the contracts. Whether the owner drained all the resources and funds. Some speculate that the reason was malicious actors or concerned users. However, the multitude of withdrawing addresses suggests that it was probably some kind of a sneaky scheme.
Recently, multiple crypto social media users and experts have been analyzing what they believed to be the fastest-growing Ponzi scheme on Ethereum. It contained critical and technical vulnerabilities that put all funds at risk. Blockchain developer Philippe Castonguay warned all users of a possible threat of money withdrawal problematics.
Chinese Ponzi FairWin collapsed
FairWin was mainly shared and used on Chinese social networks, crypto Reddit forums, and blogs. Users allegedly deposited an amount of 1 to 15 ETH and got a percentage return of 0.5–1% within five days. Also, Ethereum users dropped from 1,627 ETH at its peak last week to 500 on Tuesday. The network usage has collapsed from a near-record of 95% to 81% over the past couple of days. However, after FairWin fell, Ethereum gas prices were finally back to its affordable price.
There is a possibility that FairWin could be one of the biggest Ethereum frauds.