Hype - what is it, difference from financial pyramids
If you have ever thought about investing via the Internet and selected interesting sites,
you have repeatedly come across various hype projects, and sometimes behind the beautiful shell you don’t even suspect where and to whom your money is going.
The fact is that HYIP is a kind of investment fund that offers high rewards for your investments.
Why do I say exactly like an investment fund? Often on the website page you can see the tariff plan, management reports and information in which direction your money is directed, but in fact the HYIP project has no legal binding, and all the documents that you receive are nothing more than a fake made in Photoshop.
As you understand, behind the fake documents there is an ordinary fraudster who, in a short time, collects investors’ money and closes his project, leaving the investor without payments.
Types of HYIP projects
No matter what kind of hype project you come across, the first thing you pay attention to after your profitability is the areas where the manager invests money. So, there are several types of hype:
1) Exchange
2) Betting
3) Casino and Poker
4) Mixed type
Exchange hypes tell us that all the funds collected by the project are used on the forex exchange, stock exchange, and the team includes professional traders who can bring huge profits.
The worst thing is that often this kind of project does not participate on the exchange at all, but, according to the principle of a pyramid, funds are distributed among newly arrived participants. However, if you can still distinguish a fraudulent project by the weak design of the site, then the latest scandal with the famous forex broker MMSIS and its TOP 20 traders index, which turned out to be a screen for the usual fraudulent fundraising, you begin to become more and more disappointed in this kind of projects.
Therefore, before investing in this kind of project, make up the profit that you are promised with real human capabilities.
Betting HYIPs specialize in sports betting and claim that they are able to generate huge profits by analyzing sporting events, and also have information on fake matches. Such projects, as a rule, do not last long, from one month to six months, after which they become insolvent and are closed.
Casino and Poker are a separate and unique caste. You should immediately understand that investing in gambling is a deliberately losing option for you. Remember, it is practically impossible to deceive the casino, and good poker players, even without any projects, own a fortune and do not engage in any nonsense. Therefore, if you see that the hype is based on investing in poker games and everything related to the casino, just close the page with this project.
Hype projects of mixed type give the information that they invest in a little bit of everything, but is this really so? Before investing in this kind of office, ask yourself this question and if you do not receive a real answer from the administration in the form of supporting documents, simply ignore the company.
Profitability of HYIP projects
There is a direct relationship between the profitability of a hype project and its longevity. Therefore, all HYIPs are conventionally divided into low-income, medium-income and high-income.
- Low-income HYIP projects pay up to 20 percent per month and most often this category includes exchange companies that promise the average profitability of the average trader. As a rule, such projects live for quite a long time, so most often they invest in them.
- Medium-income HYIPs promise up to 3 percent per day, and their life expectancy ranges from a couple of months to six months.
- Highly profitable hyips promise payments from 20 percent per day and up to 100, but their lifespan can last from one day to a couple of weeks, in exceptional cases up to a month. Investing in highly profitable HYIPs is comparable to playing Russian roulette, you either survived and managed to take the money, or you lost everything, and the longer you wait, the more likely it is that you will be hit by a bullet.
Difference from financial pyramids
Financial pyramids involve attracting clients who will pay initial fees, which will be paid as a reward to the one who invited them.
Simply put, in a pyramid only the one at the top earns real money, but unlike HYIPs, they are more durable and rarely hide their essence and purpose. So the well-known MMM pyramid existed for a long time, and its founder openly stated that the money was not invested anywhere, but was simply distributed among the participants.
HYIP projects involve simple investments, and you don’t need to invite anyone to earn your interest, however, as I described above, more and more often, HYIP owners use elements of a pyramid and turn out to be scammers. Remember, any investment is associated with risks, even hundred-year-old banks go bankrupt, and investing in hype is a highly risky activity.