By Lal Singh In recent years, with rising interest in cryptocurrencies and smart-contract based programs, Forsage came into spotlight. It presents itself as a crypto-based earning platform that uses blockchain smart contracts to supposedly deliver profits. But dozens of investigations, user reports, and academic studies now label it as a scam or at least extremely risky. This article deeply analyses the facts: Is Forsage real, or is it fake?
What is Forsage? How It Claims to Work
Forsage presents itself as a “matrix” or “smart-contract” program: participants invest a certain amount (often cryptocurrency) and are promised returns — largely based on recruiting new participants. According to its own website and promoters, Forsage is decentralized, claims to work via blockchain smart contracts, and floats promises of passive income and high returns.
On the face of it, such claims sound modern and tech-savvy — because blockchain = “secure and decentralized,” many people are drawn to it. But appearance can be deceptive — and experts argue strongly that Forsage is just a new wrapper around an old scam model.
Major Red Flags: Why Experts Call Forsage a Scam / Pyramid Scheme
1. No Real Product or Underlying Business
Legitimate investment platforms or companies typically have a product, service, or business generating value or revenue. Forsage does not its main “business” is recruiting new members and collecting entry fees/crypto investments.
Because there’s no revenue from products or services, the only way to pay “returns” is to get money from new participants — a key sign of a pyramid or Ponzi structure.
2. Lack of Regulatory Oversight or Authorization
Well-regulated platforms are usually registered under financial authorities or follow certain regulations. Forsage is not licensed by any recognized financial regulator (such as FCA, SEC, or similar bodies).
This absence means there is effectively no safety net or regulatory protection for investors — if Forsage shuts down or refuses payouts, users have little legal recourse.
3. Very High Loss Rate, Empirical Study Backs It
An academic study titled “Anatomy of a Smart-Contract Pyramid Scheme” analysed on-chain data of Forsage’s operations. Results were stark: roughly 88% of users suffered losses, while a small minority at the top made big profits.
This shows that for the vast majority, Forsage was more of a gamble than an investment — akin to a lottery, where chances of meaningful returns were extremely slim.
4. Overwhelming Negative User Feedback and Trust-Score Warnings
On review platforms, users frequently report that withdrawals failed or were never processed, support was unresponsive, and profits displayed on the dashboard vanished when actual payouts were attempted.
Security scanners flag the platform with low trust scores — one security tool rated its website as “financial scam,” showing multiple risk indicators.
Regulatory and Legal Actions Against Forsage
Regulators have explicitly warned against Forsage. For example, a regulator described the scheme as an unauthorized investment operation, pointing out that its structure depends solely on membership fees from new investors.
Similarly, legal researchers and fraud-analysis sites describe Forsage as a “fraudulent pyramid scheme” — not a legitimate business.
Why It Appears Attractive — And Why That’s Dangerous
Forsage’s marketing plays on human psychology and greed — it uses buzzwords like “blockchain,” “smart contract,” “decentralized,” promising easy money.
Early adopters or top-level participants sometimes do get small payments or early withdrawals — which creates an illusion of legitimacy. That encourages more deposits from lower-level recruits.
But this dynamic depends entirely on new money coming in. Once recruitment slows or stops — which inevitably happens — the system collapses. That leaves most participants with large losses. That’s simply how pyramid / Ponzi schemes work.
Final Verdict
Based on a wealth of evidence academic study, regulatory findings, security-scanner results, and user complaints the conclusion is unambiguous:
- Forsage is not a legitimate investment platform.
- It operates like a classic pyramid / Ponzi scheme — relying on new recruits to pay previous members.
- For the majority, it delivers losses, not gains.
- There is no regulation, transparency, or real business model behind it.
If you are considering investing or have friends promoting it treat it with extreme caution. Never invest more than you can afford to lose and be skeptical of promises of “easy crypto riches.”
For safer alternatives, look for regulated platforms, time-tested investments, or legitimate crypto exchanges under regulatory oversight not schemes built solely on recruiting others.