Partnered With:

The ethereum network is experiencing severe congestion, suspected of being a ponzi scheme

Read this article in 3 Minutes

It is understood that this address belongs to the operator of MMM Global, a multi-level marketing project with a daily return on investment of 1%.

BlockBeats says thousands of transactions on ethereum's network are flocking to the same address, which now has more than $5 million in PAX tokens.

Paxos_token_eth-min & have spent & have spent
It is understood that this address belongs to the operator of MMM Global, a multi-level marketing project with a daily return on investment of 1%. In late April, the address consumed 8.5% of ethereum's Gas per day, according to a cryptocurrency researcher.

And because of this ponzi scheme, ethereum is experiencing its highest usage in years. The number of ethereum transactions has more than doubled since February, leading to a more than threefold increase in the average transaction fee. More than 1.34 million seemingly worthless transactions continue to pour into MMM Global's address. It is worth noting, however, that all transaction fees for transfers are marked as "pending."

"I now feel like it's an ongoing ponzi scheme," said Hydro Labs member Mark A. "I initially thought it was just Paxos doing something (considering the $5 million or so that came in), but it looks like it's just some random person creating A smart contract that works A little bit like A ponzi scheme."