HYIP project is a kind of a pyramid scheme – a good way to invest for those who want thrills. Because there is a 100% chance that the project will fail, but at what point is a rhetorical question. Some HYIPs live for more than a year, some fold in just a month. The one who will have time to withdraw from the project, gets 20-100% per annum, the rest have no luck. For more information on what is HYIP, how to make it and how to distinguish hype from venture capital project, read the following articles.
Scam of HYIP project
Scam of HYIP project in a professional environment means the fact that the investment project (the tool) has ceased to perform its obligation to investors. For example, the November project, a 15-year “Edinar”, judging by the reviews in groups, promised a 20% return per month, but in the summer of 2016 stopped edinars exchange on the currency. On this project, saying “scammed”. There can be several reasons for a Scam of HYIP project:
the hacking of the servers (accounts) of the administration of the project and the abduction of money. High-profile bankruptcies of cryptocurrency exchanges also to some extent can be called a Scam, but the bitcoin didn’t hurt. But the situation with the project KlosPamm — a vivid example;
the human factor, an error of the project staff. In General the fault lies on the project managers and the whole team, but the miscalculation is usually blamed on 1-2 people. They are fired, the administration apologizes and continues to “cut” customers to re-bench, and then collapses completely. Example: Euro Invest Company, Gamma IC;
bad faith on the part of partners, payment systems and banks. And let the Scam of HYIP project may be artificial (if you use as partners affiliates), the situation with the project Stability FX where the fraudulent scheme was not meant — the Liberty payment system failed.
However, in most cases the administration is not trying to come up with any reasons, but simply disables the website. It is logical that investments in such projects more risky than venture projects or crowdfunding. But the profit is only for the fact that the money is invested is 20-100%. The case for small: to predict when a Scam of HYIP project will occur.
The signs of the imminent collapse of the investment project:
frequent problems with the site crashing, DDOS attack, slowness of the site, etc. When the admin realizes that soon the project will scum, less effort and money are put in the development of the website;
reduced quality of work, feedback, customer support. The reason is the same — a reason to spend money on maintenance in obviously a dead project;
problems with money withdrawal;
a sharp increase in the profitability of the project. Thus at the end of project owners are trying to squeeze more money from customers;
sudden change in the policy of the project. This is done to attract the attention of potential customers;
significant increase in the number of advertisements in the media and on the Internet;
- the appearance of negative reviews;
a steady decline in site traffic. To check attendance, you can use Internet resources. How? Type in the search “to Know the attendance of another site”. Note that the program only show the approximate attendance, but the dynamics of them could be traced.
There is no protection from Scam of HYIP project. All we can advise is to diversify the investment portfolio, to invest what we do not wish to lose, closely follow the news, read blogs and forums, try to withdraw money more often.
Summary. You can and should invest in HYIP projects! But easy money does not exist anywhere, therefore be alert at all times and manage time to withdraw money. Scam of HYIP project is inevitable, but it is possible to earn!
