The most actively used Ethereum decentralized app (dApp) 333ETH has just been labelled an “active scam” and blacklisted by popular cryptocurrency wallet MetaMask.
When MetaMask users head to the 333ETH website, their browser will greet them with a message warning them the app could compromise their security.
333ETH – which currently stands as the most popular app on DappRadar – is a smart contract-powered “automated investment distribution” platform that promises daily returns to users.
Sounds too good to be true? Well, it might be. Indeed, Mashable recently compared the platform to a Ponzi scheme.
The 333ETH platform is apparently so ingenious, that after taking some of your initial investment for “marketing,” “technical support,” and “payroll,” users will supposedly immediately begin receiving 3.33 percent daily dividends of the Ethereum sent to its smart contract address.
As schemes with similar promises have taught us, such systems will appear to be functional until the contributions stop coming, after which the whole thing collapses.
So, perhaps in an effort to bring 333ETH to a swift close, the widely popular MetaMask extension will greet users with the following message if they try to reach its website.
333ETH markets itself as providing “security of contributions and life-long payments guaranteed by the Ethereum blockchain.”
There is supposedly added security in knowing that the creators can’t just pull an ‘exit scam’ – and that the Ethereum smart contract system controls all of the funds.
There’s even a referral program (can I get a “BITCONNEEEEEECCCTTTTT!?!“).
A primary Ethereum use case
It’s a hard truth to stomach, but this is our reality. 333ETH is currently the number one Ethereum dApp in terms of user activity. It currently boasts over 1,700 active contributors, and over the past 30 days more than $3 million in Ethereum has been distributed via its smart contract.
It’s worth noting that 333ETH’s ‘number one’ status has been disputed by MetaMask. When using certain metrics, such as transaction volume or smart contract balance, that’s certainly true.
This site was never the most used Dapp, and it was actively phishing people. We will be adding the ability to skip our block page, we don't mean to tell people what they can visit, but this site is an active scam.
— MetaMask (@metamask_io) September 27, 2018
But when ranked in terms of recent user activity – it is definitely number one. It even rules over decentralized Ethereum asset exchanges IDEX and ForkDelta.
Warning users against obvious Ponzi schemes and other related scams is certainly necessary, especially if the industry has any hopes of achieving the fabled “widespread, global adoption.”
Before that happens, the Ethereum community might have to come to terms with their blockchain being commonly associated with seedy gambling platforms and blatantly dodgy pyramid schemes.
After all – smart contracts are autonomous, and effectively indestructible. Outside of censorship, the only defence we have is education.
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