Hype: what is it? Pitfalls of Hyip

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

HYIP is an Internet project that promises investors high interest rates (from 8-15% per month to 1% per day or more) on deposits.

Hype: what is it? Each such project begins with a beautiful legend. This may be some kind of offline business: “Our company is the largest developer in the city of N., and we urgently need additional investments” or “We have our own casino, and in order to increase profitability, we need to increase working capital.” However, online projects are more often used as legends. The most common option is: "Our team of professional traders is able to turn the invested funds into your personal Eldorado." Sometimes, to prove their “decency”, clients are paid interest over a certain period. But the projects do not provide any actual evidence of successful work. That is why such a hyip (hype) investment is made by each investor at his own peril and risk.

There are fairly well-known projects that have left their mark on history: Gamma, StabilityFX, VladimirFX. And although some have worked severalyears and brought their investors a certain income, the end is the same for everyone.

Essence

Hype: what is it? At the heart of any such project is a financial pyramid. All interest payments to clients are made at the expense of incoming funds from other clients who had the imprudence to make their contribution later. And according to the law of the genre, any financial pyramid falls late or early.

Types of HYIPs

1. With low returns. This type is the most long-playing. The project offers investors a low percentage of return - 7-15% per month - and therefore is able to exist for quite a long time.
2. Hype with medium and high returns. These types of projects seek to “get rich” for investors and offer from 20% per month or more. Their life span is short. The middle-income ones can last for several months, while the high-income ones complete their life path within a week. And most of the participants know about the fraudulent nature of such financial pyramids.

How to organize

To create and implement HYIP, you will need one, maximum two people. Everything is much simpler than it might seem at first glance. HYIP scripts are present on the Internet and are not so expensive. They are already ready and configured. You only need to replace the interface, upload it to the server, connect it with electronic payment systems and you can start it.

And you don't need to have superintelligence. The network of such projects is dark and dark. And if opening and launching is an easy enough business, then here is the promotion and attractioninvestors is a much more labor-intensive business. In order for people to bear their hard-earned money in the project, it takes a lot of effort. Specialized forums and websites can help, the main task of which is HYIP monitoring. The forums are inhabited by a huge number of "refers" who will give the most comprehensive answer to the question: "Hype - what is it?" and others similar, will show screenshots of “successful” payments. The task of such agents is to attract new investors. And this is done quite simply. The agent in his signature on the forum indicates a link to the project that needed promotion. As soon as someone follows the link and registers, the “refer” immediately receives his percentage.

There is nothing strange in the referral program itself. It is used by many Internet projects (online games, online stores, exchanges, hosting).

The exact scheme can be represented in this way. The organizer (admin) launches his project and recruits referrals to promote the resource on popular forums. New investors come, many of whom already have experience working with HYIPs. From each deposit, the organizer keeps a certain percentage for himself, and transfers part of it to the referrals through the affiliate program. The rest of the electronic money supply remains on the accounts so that any of the depositors can withdraw their funds on demand.

As soon as the acceleration period is over, investors begin to withdraw profits and deposits, because they know that the holiday will not last long. And as soon as the inflow of fresh funds does not compensate for the outflow, the admin stops payments and takesall. Such spontaneous "bankruptcy" got its name - "scam". As a result, investors receive less funds than they could if the project paid to the end.

Who is in profit

As a result, three categories of participants benefit: the organizer, active referrals, and experienced investors. The losers are newcomers who believe that they have invested in a serious investment program or, having burned themselves once, they imagine themselves to be experienced investors.

How to choose the right HYIP

You need to invest as much money as you don't mind losing.

Passwords and logins to accounts should be kept secret and better on paper, not on a hard drive.

Careful analysis of the project for possible investment will help to avoid unnecessary losses. HYIP monitoring to help.

Don't put all your money into one project. It is better to choose a few that inspire confidence and make small contributions to each. This reduces the risk of losing the entire amount.

Don't spam. For this, it is easy to get a lifetime ban and a complete blocking of the account.

Pitfalls

Whatever advice, they will not give a 100% guarantee of earning money on HYIPs. The organizers of these projects also do not stand still and take into account experience. Their craft is improving day by day. And there will always be a risk of getting caught in their network.

Pronounced seasonality. There are such periods when admins are simply "obliged" to withdraw cash. This is due to the flow of withdrawal of funds and a decrease in the inflow of investments, which ultimately leads to the HYIP scam. New Year's Eve andthe beginning of the summer holidays - periods when everyone needs money.

Lifetime. It is worth withdrawing money even when HYIP projects have passed half of their life path. This period is tentative and will be more accurately determined as the investor's experience grows.

Design. If the site interface is made carelessly, then there is no doubt that the project will last very little.

EPS analysis. Having studied which electronic payment systems (EPS) HYIP scripts work with, you can predict their lifespan. If there are less than five ways to replenish, then the project is weak, and therefore short-lived.

Investment should be carried out in low-yielding HYIPs and for 1-2 months, with the subsequent withdrawal of both interest and principal.

Using HYIP monitoring

One of the ways to increase the efficiency of investing in such projects. Sites of this kind monitor HYIPs, provide their lists, information about payments and problems that have arisen. It should only be remembered that these sites are used to promote new projects, as described above, and may not always provide objective information. Trust only trusted sources.

Payment systems for working with HYIPs

After the closing of Liberty, Perfect Money took its place. This is a relatively young system, but actively developing. Its staff are former bank employees, economists, and lawyers. Therefore, it is not only promising, but also safe. More than half of HYIPs make deals in thissystem. It is worth talking about the security system of this EPS. It includes verification by IP, SMS-authorization, code card. The latter is sent to the user's e-mail and it shows a graphic code that confirms the transaction being made. The commission for internal transfers is half a percent, and for a withdrawal to a bank account, the fee will be fifty dollars plus three percent. The maximum withdrawal amount at one time should not exceed thousands of dollars.

Pecunix. EPS is registered in Panama and has been operating since 2002. Each account is tied to gold. Known for its advanced security system, which is not so easy for the average user to figure out. Internal calculations are in grams of gold. The EPS commission is half a percent if less than one hundred grams is withdrawn, and 0.15% if more is withdrawn. Another feature is that the user himself chooses from whom the commission will be withheld: from the recipient, the payer, or from both equally.

Alertpay. Registration took place in 2002. It has three types of accounts. A personal account has a limit on input - no more than two thousand dollars per year. The commission is one dollar. A premium account is free from restrictions, but the commission is 3.9% plus $0.25. A secure account is convenient for HYIP owners. Protects against refund requests. Commission, like the previous one, but plus $0.6.

Moneybookers. Country of registration - United Kingdom. The commission is half a dollar. Useful chips - you can set to whom, when andhow much you need to send, and the system will then do everything itself.

Other EPS that HYIP can use: kiwi, web money and others.

Conclusion

For most investors, investing in HYIP projects is unprofitable. You won’t be able to earn large sums, and the risks are high. And most importantly - a lot of time is wasted. Hype, what it is, everyone knows, and it is better to treat it as a game of chance, a kind of lottery. There is a high probability of losing the invested amount or receiving less than the invested. The same principle applies to casinos. Only there the funds are redistributed randomly and the gambling house takes its percentage, and in HYIP the first invested, administrator and referrals earn, the rest are the losers.