Recently, a new Ponzi scheme based on cryptocurrency investments has been revealed, which started eating 15% of Ethereum (ETH) network resources.
Old but gold
This Ponzi is styled after the most infamous post-Soviet Ponzi scheme of the 1990s and utilizes the name of legendary Russian fraudster Sergey Mavrodi.
The ‘crypto edition’ of this notorious scam pledges a monthly income of up to 30% and refuses to recognize itself as a high-risk product. It uses the Paxos Standard (PAX) ERC20-based stablecoin as an investment instrument.
At the moment, Ethereum (ETH) resources explorer Eth Gas Station indicates that this scam is the second largest user of gas in the Ethereum (ETH) network. Only the world leading stablecoin USD Tether surpasses it in terms of gas spent.
According to the Gas Tracker by Etherscan, the address of this scheme is responsible for 15.66% of all gas usage in the Ethereum network
Renaissance for Ponzis
Such enormous gas consumption has already resulted in an upsurge of safe minimum gas fees in Ethereum (ETH).
If this scam continues its growth, the Ethereum (ETH) blockchain transactions may get stuck. This may be the first Ethereum (ETH) congestion not caused by NFT game euphoria nor price fluctuations.
The problem of scams abusing blockchain resources isn’t unique to Ethereum. Last November, the EOS blockchain was clogged up by a shady airdrop.
Its smart contract transactions made CPU usage in EOS skyrocket, which resulted in a wide-scale network collapse.