HYIP operation mechanism
Classic HYIPs in their original understanding are not fraudulent, this is a money investment program, the income from which is much higher than bank deposits. The money invested in HYIP participated in the development of a business or trade in the foreign exchange or financial market, and part of the income was returned in the form of interest to investors.
As usual, where people are ready to give money to strangers, scammers appear there, and the HYIP market is no exception.
The fraudulent scheme is distinguished by the fact that under the guise of a classic HYIP with a beautiful legend about investing in a business or about trust management in the currency or stock market, an ordinary financial pyramid is hiding. That is, money does not really increase, and interest is paid to old depositors at the expense of new deposits.
Such a scheme cannot work forever, therefore, fraudulent HYIPs close sooner or later, and since the fraudsters themselves ‘must’ get some kind of ‘profit’ from this, HYIPs close sooner rather than when a lot of money has already been invested in the project, and There are still few requests for withdrawal.
There are also “honest” fraudulent HYIPs called MLM games. The bottom line is the same financial pyramid, but instead of the legend about the real work of investments, the administration of MLM games openly positions the project as a pyramid, and attracting new customers can be a prerequisite for making a profit.
The thing is that, unlike the theory, in practice HYIPs often close before the peak due to the greed of HYIP administrators and the desire to ‘snatch now.’ So, for example, if the influx of money today suddenly turned out to be less than yesterday, the admins raise a panic and the next day the project turns into SCAM and stops paying, although the decrease in the inflow of money could not happen due to a “peak”. For example, it is possible that the inflow decreased due to the weekend or holiday, when people switch from the financial component of their life to the “cultural” one, and tomorrow the inflow could return to the past or even increase, since there was only less money for the holiday, and Thoughts about money, respectively, more.
There are times that hype admins are so blinded by the desire for quick free money that they don’t really think out a strategy, save on security and advertising, and ultimately find themselves in the red. There is no longer any time for payments, when it’s not possible to repulse investments properly.
Another side of reality is that the greed of some admins is so great that they basically do not pay anyone, just collect money before the time of payment of the first deposits comes and close the project.
Remember the legend of Robin Hood? This is also a gangster, he also robbed, but he had an ideology, he did not rob for the sake of profit and not everyone, and for that he even earned a lot of respect, although he achieved everything by robbery.
Why am I doing this? Among hype admins, there are also people with ideology and moral principles. For them, hype is an art, and they get satisfaction not from the money itself, but from the power over them, from the pleasant feeling of turning millions over. Like any art, they strive to do everything perfectly, because a bad sculpture will not be famous, and a bad painting cannot be sold at auction.
Ideological admins by themselves leave part of the money for themselves, but do not be greedy, honestly paying interest, while this seems possible. Unfortunately, it is difficult to calculate such projects: on the one hand there are many projects that try to disguise themselves as similar, on the other hand, the admins themselves do not advertise that they are the admins of the new project in order to protect themselves from too fast and too large an influx of money that can also ruin the project And administrator’s reputation and ensure a smoother and more manageable development of hype.
If you decide to enter the sphere of hype projects, then you should be aware that where there are winners, there will certainly be losers. Whether you are an administrator, investor or referral, your income will be received due to the failure of another person who may not have known how the hyps really work, trusted and invested money that was intended to treat his wife, educate a child, or some other good things Goals, or maybe laid a car and an apartment.
But do not blame the admins, the referral who brought you into the project or the fate, all responsibility for participating lies only with you, as if you voluntarily went with this money to the casino or even worse, started playing caps in the gateway.