Hype legends and myths
The legend in hype is a story about what the project does and where investor funds are invested. Many newcomers sacredly believe everything written on the project’s website, actively prove that the company is engaged in real activities, will work forever and in general nirvana will come. This is the most ideal option for the founders of the HYIP project – the bait worked, a person will often reinvest, call friends, and when problems arise, wait, hope and believe that “just about” everything will work out.
It’s not for nothing that hype investors use the term “legend” rather than “investment activity”, because the story of what Hyip does and where it is invested is almost always made up.
What are the legends in hype
One of the most popular topics is sports betting. Everyone has at least some idea of rates and understands how they are arranged. Typically, the texts of such projects say that professional mappers work in them. Moreover, in half the cases, no reports on the done bets are provided. The excuse here is iron – the screenshots are not laid out due to the risk of cutting the odds or delays in payments from the bookmaker. Allegedly, the office is not profitable when such successful guys win, bookmakers try to put sticks in their wheels and it’s better not to shine once again. Or the second option: there are no reports so that investors do not place bets on their own, but invest through Hyip.
Stock and foreign exchange trading
Forex and binary options have long been advertised on the Internet and are widely heard by many, so they are often used as a legend in hype.
You are offered to invest profitably in order to give loans to people at interest. You get a part of the profit, another part is left to itself by the admin. It looks quite real, but the crazy interest rate that investors are offering breaks the picture. But the administrator needs to earn something for himself, to recoup the costs of employees, programmers, offices and cover the default on loans. That is, you need to multiply the percentage offered to investors by 3-4 times to get an approximate total percentage for which a loan should be issued. Are there many who want to take money on such conditions? The answer is obvious.
Usually one of the following phrases is usually used here:
1) The project creates its own “innovative” cryptocurrency, which can be mined only by hype investors.
2) The project trades on the cryptocurrency exchange, earns on exchange rates, and the investor pays a percentage of the profit.
For many people, cryptocurrency is too complex a topic to understand. It sounds cool and incomprehensible, they heard that you can earn money on it and this is enough for them to believe in what is written.
Property rental, car rental or other tourist services. Serious preparation is required to support the legend, as A serious company providing such services should have telephones and offices where you could come (or at least find it on Google Maps) and check.
Another legend in hype
You can meet completely different legends: from fruit cultivation to space exploration. Very strange and confused, or vice versa, clear and simple. The main thing is not to take it seriously.
In 2014, all admins were cool predictors in sports betting. And before that, everyone was cool forex players. In 2016-17, every second hype is engaged in cryptocurrency trading. The legend adapts to the trend so that people more willingly believe in it.
Elements that complement legends in hypes
- Documentation. Certificates and licenses, usually purchased in offshore. They can be drawn in Photoshop in order to save money, so all documents need to be checked on special sites. For example, if a company is registered in the UK, then check its number for reality here.
- Phones Often you can see the phone numbers, calling on which you will answer all questions.
- Offices As a rule, offices can boast large projects. They give a bold plus, because the project is now not just a website on the Internet.
- Reports. Regular progress reports presented as screenshots or videos. Admins thus say: “Investor funds are working, the profit for today is 0.9% – these are screenshots of transactions.”
- Offline presentation. Another powerful tool: to see the organizers “live”, watch a presentation, chat with them – this seriously increases the level of investor confidence.
It should be understood that licenses and certificates can be bought, reports can be falsified, and the project organizer, who speaks at presentations, may not be one and in fact be a figurehead.
Summing up, I want to note that the legend should pay attention only as an attribute that helps the hype to live longer. The more believable it is, the more various reports, documents, presentations that complement the legend and the more sincerely people believe in it, the more chances the project has to make a long game.
If doubts creep in and really want to believe in a fairy tale about where investor funds work, just ask yourself two questions:
- Why should the administrator pay 15-20% per month if he can take a loan from a bank and not share profit with anyone?
- Why does he need someone else’s money? If he can always make 20% per month, for example at bets, this is a very rich person who lights a cigar from hundred-dollar bills.
I will explain the second point. Suppose a person makes 20% monthly. Having at the start some 1000 dollars, after a year of such work they can be turned into 9000 bucks. And in a year, this amount will turn into 80 thousand dollars. Do not be surprised – this is how the “compound percentage” works.
Now imagine yourself in the place of such a pro, chopping 20% per month at any rates or bids. Would you bother opening your project, set up an affiliate program, make hundreds of payments, lay out reports and be constantly in touch? Yes, you would have scrolled your money and chopped off wild profits without worrying about anything, and in a few years you would have appeared on the cover of Forbes 🙂 Now you understand how ridiculous it sounds when the admin says that he needs extra money to increase turnover and get more More money?
Yes, there are also such projects in which admins work in the name and activities are carried out according to legend, but the percentage of such hyips is negligible. And as a rule, you learn about it when, after a long work, the project gives deposits to absolutely all participants and after that it closes. But this is something from the category of science fiction, such cases can be counted on the fingers.
And therefore – we treat the legend as a good fairy tale, because almost always the way it is.