Online Investment Platform
Is SmartEtherPay Fake or Real?
Why Is SmartEtherPay Fake?
SmartEtherPay claims to be an online investment platform involving the cryptocurrency Ethereum. The website is very bare and almost seems incomplete. The content is poorly-written and the website does not seem professional.
The investment plan of SmartEtherPay is very clearly a pyramid scheme. There are no products or services being offered and income is only generated through new investors. Such schemes are illegal as they are considered a form of fraud.
A domain name lookup shows that the website was registered on 8th July 2020. The registrant’s name and location are unknown as they have been blocked for privacy.
As per the rules, it is mandatory to refer at least two new members to invest in the scheme. The only way to make money is by building a chain of downlines who will get more people to invest in SmartEtherPay. As per my understanding, investors can earn a 300% profit after 20 successful referrals. It should be noted that though this is a platform for investing in Ethereum, all the amounts are mentioned in USD and not ETH.
SmartEtherPay has no social media presence and no reviews for the platform could be found. There are no contact details provided on the website.
It seems quite clear that SmartEtherPay is a Ponzi scheme. There is no evidence of any revenue-generation method except the money invested by new members. It is mandatory to recruit new investors to earn commissions. There is no information on who is managing the platform which makes it a risky investment proposition. The company has no social media presence and no contact details have been provided.
Under such schemes, investors might initially receive payouts. This is done to gain their confidence so that they reinvest larger amounts and recruit more members. Such an investment plan is unsustainable as there will inevitably be a point when no new investors join the scheme. At this point, the revenue will run dry and investors will stop receiving profits. A large majority of investors in such schemes end up losing their money. It is advisable to avoid investing in SmartEtherPay as it seems to be an HYIP Scam.
Remember: If something seems too good to be true, it probably is.
If you have been a victim of an investment scam, you can take the following steps:
- File a complaint with the payment portal. However, investment scammers mostly use methods such as Bitcoin, Western Union, MoneyGram and other untraceable methods which make refunds impossible.
- File a formal police complaint with the Cybercrime department.
- Leave a negative review on review portals such as Scamadviser and TrustPilot
- Report the website to Google using the Suspicious Site Reporter extension for Chrome
- Give a low rating to the website on Web of Trust. You can also install their extension for the same.
- If the company has a listing on Google My Business or Google Maps, file a complaint using the Business Redressal Complaint Form. Also, leave a negative review explaining what kind of experience you had.
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