subject: Hyip Investments are Easy Profits or Easy Losts [print this page] Introduction to Hyip World Introduction to Hyip World
A High Yield Investment Program, or HYIP, is a often type of pyramid scheme normally offered via the world wide web. HYIPs typically accept deposits as little as $1 while promising incredible high returns.
Online HYIPs schemes rarely last for the long term. Overwhelming number of instances claim that HYIPs are Ponzi schemes, during which new investors provide the cash to pay a return to existing investors, which they typically then withdraw. This method allows the scam to carry on so long as new investors are normally found and/or old investors leave their funds inside the scheme, often known as compounding (because even higher profits are promised).
The development of e-currencies like Liberty Reserve and PerfectMoney makes it practical for High Yield Investment Programs to perform over the internet and cross international boundaries, and to accept more and more small investments. HYIPs usually accept deposits by either e-currency, like LibertyReserve, PerfectMoney, C-gold, GlobalDigitalPay, Pecunix or use third party payment processors like AlertPay, SolidTrustPay or OkPay. HYIPs typically give a significant incentive commission 3-9% of invested funds for members to attract and refer new investors.
Most HYIPs disclose a minimum of detail in regards to the underlying management, location, or other tasks of how money is to be invested and relatively little information (aside from asserting they do various kinds of trading on various stock as well as other exchanges) on how they will really generate the returns they purport. They may be sometimes offered some kind of a difficult appeal, appeals for faith, and promises they will certainly help investors achieve financial freedom.
High Yield Investment Programs typically declare to offer interest rates of 1% and up each day on invested funds; some claim to offer much higher daily rates exceeding 200% a day. Allegedly, the highest-return HYIP on record has offered 1,100% ROI in one day. Claims of astronomical returns without large capital outlay or history are indicative of a Ponzi-structured HYIPs program.
HYIPs games.
Caused by online forums and monitoring sites which may have made .High Yield Investment Programs investors more alert to their nature, an alternative kind of "honest" .High Yield Investment Programs began springing up during the early months of 2008. Basically, the High Yield Investment Programs owner calls his or her program a "ponzi-structured game" where one should "not invest money one cannot afford to lose", and where there is "never a guarantee of earnings or refunds". They promise to pay out approximately (for example) 95% of deposits, the rest gonna hosting or other fees and also the owner's profit.
In such "games", the very first participants ("investors") could make an excellent profit and are encouraged to refer many people to the program as a result of referral commission, the truth that they have made back their principal and so are using profit, which the greater those who deposit money, the more money could be released to participants. The theory is that, strategies could be developed to increase profit using these games (but, naturally, since it is a zero-sum game, such strategies work by taking advantage of ignorance or errors by others). Some forum users may achieve reputation whereby others will trust their word that they have been able to withdraw their profits, encouraging others to invest in the hopes that more will invest after them and that they can therefore make money. Since these games are by definition Ponzi schemes, it's inevitable that nearly all investors that are not at the top of the pyramid will miss their cash.
These "games" are as lotteries. However, chances of winning can not be determined, as one cannot know whether the first is playing early enough to win money (that is, whether an adequate amount of new participants will track). Thus, these activities are unlike a lottery or other types of gambling, in which a player has an equal potential for winning it doesn't matter every time a ticket is bought, or where the likelihood of the overall game are known.
