Hip Project Life Span
Life expectancy is one of the most talked about characteristics of any HYIP project. Perhaps more often they mention only the percentage of income. But why is the life of hype so important and how long should a good project live?
- In all hypes, payments to participants are made at the expense of new participants. And, of course, the influx of new investors sooner or later begins to weaken, and then completely ends, so the hype fund begins to melt. And the more the project pays its investors, the faster it “burns out”.
- From the point of view of the investor, the lifetime of the project is no less important than the size of payments. After all, what’s the point of investing in a project that pays 5% per day if it dies in two weeks? However, a project with low profitability and a long lifespan is also not very interesting – for long-term investments there are many less risky options.
- By and large, the task of the investor is to search for those projects that offer the optimal balance for his life, the size of payments and risks. And the task of the creators of hype is to propose a ratio that will interest investors.
- There are many approaches to ensuring this “optimal balance”: projects for every taste are presented on the market – both short-term highs and medium and long-term ones. In addition, many projects use a variety of methods to artificially extend their lifespan. Each approach has its pros and cons, so it’s worth talking about the most popular ones.
EXPARVEST is an example of a classic short-term high-interest hype. The organizers offer investors to get high returns in a short time (in this case, 120% in 7 days).
There are a great many short-term hypes in the market, they offer different investment periods (from one day to a couple of weeks) and different percentages (as a rule – over 60% per month).
Theoretically, such projects can bring the greatest profit – you can double the invested funds in a matter of days, and then immediately invest them in another project. Because of this, such projects are most popular with novice investors.
True, there are many disadvantages to this approach:
- High payouts mean a high burden on the fund, which quickly “burns out” as soon as the influx of new investors begins to decline. So such projects die quickly and often suddenly. The first investors have good chances to recapture their investments, but with every hour that elapses after the launch of a short-term hype, entry into it becomes more and more risky.
- Due to the popularity among beginner investors, it is in this market segment that fraudsters and frank scam projects are most often found.
- Due to the huge number of similar “quick” hypes, they all lack an audience: too many projects and too few investors.
In other words, short-term highs are the most profitable, but also their most risky and unpredictable variety. So their choice should be approached as carefully as possible and never invest more than you are willing to lose.
This category usually includes highs offering income from 15% to 60% per month with a term of investment of several weeks.
This market segment is represented by the most balanced projects in terms of the size of payments / lifetime. The risk of fraud here is also slightly lower than in the short-term segment, as it is less popular among naive investors.
In addition, not all medium-term investors rely solely on financial returns from new investors. For example, here you can find HYIP games, casinos or projects for investing in Forex brokers. The main source of income is still the investment of new participants, but part of the invested funds is spent on the development of “third-party” income. This provides significantly greater stability of the project and significantly extends the time of its existence.
Most long-term projects (with investment periods of several months or more) offer their investors no more than 15% per month. So the key issue is the payback period of the deposit. Still, the risk that even a long-term project will “collapse” before you have time to recapture your investments is very high.
At the same time, there are hyps that have been working for several years, for example, Titan-Bank, launched back in 2015 and paying investors 2% of the deposit per week.
Most successful and long-running high-tech investors invest in trading (both on Forex and cryptocurrency exchanges), or other third-party sources of income (for example, in cryptocurrency mining). Due to this, an “airbag” is created that ensures the stability of the hype.
Dominant Finance – “borderline case”
Dominant Finance is a rather interesting project. In terms of investment, this is a typical long-term hype (all tariff plans offer a working period of 400 days), but in terms of the amount of payments, it approaches medium-term projects (13-14.5% per month). You must admit that it looks quite “tasty”, even too “tasty”, so certain concerns are well-founded.
There are a lot of such projects offering interest rates significantly higher than typical. And, strictly speaking, overpayments are always a wake-up call.
In the case of Dominant Finance, there are two reasons for the project: the interest, although high, is not prohibitive, and the project itself has an additional source of income – Forex trading. In addition, a rather aggressive marketing campaign allows us to expect that new investors will come for a long time.
But the above is a “minimum set” that makes a project with inflated payments at least worthy of consideration. If sources of additional funds for ensuring the work of hype are not observed, it is not worth investing in such a project.
EthRV – how to extend the life of hype at the expense of investors
EthRV – a representative of the “new generation” of hype – is a cryptocurrency project based on a smart contract. Receiving deposits, paying interest, accruing bonuses and in general all actions with the project fund take place in a fully automatic and completely transparent mode. Accordingly, the potential lifetime of the project can be calculated by any person from the outside.
And the EthRV developers made a lot of efforts to maximally delay the final burnout of the fund. In addition to the fact that the profitability of their project is significantly lower than in most cryptocurrency hyips (1% per day), the maximum investor profit is also strictly limited to 100%.
The result is a rather controversial hybrid: from the point of view of the investor, this is a medium-term hype in all respects, which pretends that it is long-term.
In the footsteps of Cashberry
Perhaps the most popular way to extend the existence of a fund is through an aggressive marketing campaign. The more actively the project is advertised, the more new investors will come and the longer the hype will work.
This approach has been working “from time immemorial” – since the first iteration of the MMM financial pyramid in the 90s. Recent examples include the famous “Cashberry” or the “successors of the Mavrodi case” project – Mavro.
An investor, however, needs to remember that an actively advertised project can also “collapse” quite quickly. Including because marketing requires significant costs. So to enter such projects is only at the very beginning of their path. Further, the chances of repulsing investments are rapidly decreasing.
Donors and “HYIP killers”
- Sometimes hype (usually small and short-term) work much longer than it seems possible under the laws of common sense and mathematics. The most common reason for this is the activity of so-called “donors”.
- Donor ”invests its own funds in the fund in order to postpone the inevitable end of the project and attract at least some more investors. After this, as a rule, the project will collapse and investors lose deposits.
- However, the investment of additional funds is sometimes used to destroy projects.
- A striking example is the story of GORGONA.IO. This small cryptocurrency hype worked quite successfully, until a deposit of half the project fund was made from the GORGONA Killer account. In a matter of days, he “deflated” the fund and hype “collapsed”.
It is impossible to say that hype must have any specific life span in order to be considered worthy of investment. Different investors need different projects. So when choosing a hype, you should be guided by the ratio of risks, payback periods and profitability that is acceptable to you, as well as pay attention to disturbing signs like too high percentages or the explicit participation of “donors”.