How do hyips on smart contacts
As you know, the hype industry has a certain spontaneity and its own development dynamics. Financial pyramids have existed for a long time and their essence is the same, but the appearance changes from time to time. Therefore, such projects will never die, they will only change into something new. Back in April – May 17, everyone admired the possibility of the cryptocurrency market and the profit laid down in it. Everyone believed that the era of hypes has passed and it’s time to break into the crypt, so as not to be left without the last bucks in your pocket! And finally, the mix of crypts and Ponzi schemes really appeared – smarts on smart contracts 🙂 The trend is new and interesting: who knows, maybe this is what will bring the hype world to life?
What are smart contracts
Smart contracts are provided on the Ethereum network instead of transactions. In fact, the creators of the ether wanted their cryptocurrency to be not only a unit of account, but also something larger, which allows people to set up any automatic operations. For example, if we talk about applications in real life, then this may be buying an apartment, paying fines / duties, receiving any documents. Smart contracts allow you to register any executable code within yourself. This is what smart hype admins took advantage of.
Hyip on smart contracts work without a personal account. Their site is just a collection of beautiful (or not so) html pages with various information. All other functionality is embedded in the Ethereum smart contract. Therefore, it will be necessary to depreciate exclusively with ethers.
Initially, such projects are inherently “honest”. That is, the admin refuses access to the entire box office of the project: he cannot at any fine moment take and collect all the money. The profit of the creator of such a hype consists of only% of the cash register. Users themselves can observe the flow of funds on the project wallet. You can verify this through Etherscan (https://etherscan.io/). Great, isn’t it? Here is a real ‘holy’ model of a financial pyramid! But such a situation is possible only if the project administrator refuses to own the smart contract. It is also important that such a project has a third-party audit! The owners of the project are obliged to post all such information on their website. If there is no waiver of ownership or audit, then when investing there are additional risks not to return your contribution.
Pros and cons of HYIPs on smart contracts
Despite the beautiful principle of operation, such a system has a fairly large number of ambiguous nuances, which can be either a plus or a minus depending on the situation.
- Investments are made only through the air. For an ordinary investor, this can be a plus if the rate of this cryptocurrency grows – then he receives not only dividends on the deposit, but also profit from the growth of the rate. Less, if the rate of ether began to fall sharply, then some fiat losses can be incurred. But remember, the profit or minus from the growth of cryptocurrency comes only when you fix it! (that is, withdrawn in fiat money). And with active investment, you should not constantly look at the airtime rate, because The cryptocurrency market is quite volatile: therefore, consider your profit from investing in such projects exclusively in the number of ethers.
- Anyone can see the real balance of the project wallet. As a result, users can conclude about the stability of the inflow and the growth of the cash desk: if the inflow covers the amount of payments, then you can think in more detail about the deposit. At the same time, this gives rise to a false panic: one of the inexperienced beginners can take a small and temporary minus at the box office as the beginning of the disaster and panic in all chat rooms. Therefore, we analyze it correctly and use this cool feature of hyps on smart contracts to the fullest!
- The difficulty of perception on the part of an ordinary investor: the project does not have a personal account, which means that you need to study new technical tools to work with it.
What are the features of investing in HYIPs on smart contracts
In hyps on smart contracts, you do not need to register. You just need to immediately send your deposit to the project wallet, after which the smart contract automatically “remembers” you and will make payments to the address from which you made the deposit. Do not make a contribution from a cryptocurrency exchange, otherwise you get the opportunity not to return your money back. Therefore, it is worth using ethereum wallets: MyEtherWallet, Jaxx or MetaMask.
HYIPs on smart contracts use two types of payments: instant and automatic. With automatic, the system itself sends charges without your participation. With the instant method of processing applications, it is enough to send 0 broadcasts to the project wallet and your payment will be instantly delivered.
There are also certain features with a referral program. Some projects do not use it at all. Detailed information should be viewed on the site. If the referral program is used, then when transferring funds to the project’s wallet, it is necessary to indicate the wallet of the inviter in an additional field. After that you can get your refback.
Instead of a conclusion
As you can see, the structure of hyps on smart contracts is new and has several features. In the article we set out the basic methods for choosing such projects. To simplify the task, answer the following questions for yourself:
- Is there a referral program here? Can I get after refback from my upline?
- Has the administration refused to own the contract?
- Is there a code security audit?
- What percentage of replenishment does the administration take for creating and promoting the project?
- What is the dynamics of deposits in the project wallet?