Hype is a pyramid-based fraudulent organization. HYIP organizers promise investors a huge percentage of profits in a very short time. As soon as the flow of investors dries up, the organization ceases to exist.
HYIP is a pyramid-based project. Such a highly profitable investment program promises its depositors an income of up to 100% or more per day. Thus, investments in such fraudulent enterprises look more attractive than in other funds and companies offering lower interest rates.
The meaning of work
HYIPs are divided into long-term, medium-term and fast. Projects of the first type promise an income of up to 1% per day and can work for several years. Medium-term profitability is 2% per day, and the life span can vary from one month to several years. Fast HYIPs promise 100% profit per day, while they can cease to exist even in one day or less. The payment of fabulous interest is carried out at the expense of new income and attracting more and more participants. Thus, the organization exists as long as there is supply of fresh money. As soon as the infusion stops or is not enough to cover current liabilities, it ceases to exist.
HYIP can imitate and declare trading in the foreign exchange market or the futures market, offer investors to invest in a promising project (start-up) or bet on sports. Everything here will depend on the organizer's imagination. Statements of this kind do not correspond to reality and this is just a hype legend. In some cases, money may be collected, and then these funds are used to trade in the Forex market. This option can still be considered more or less stable, but the risk of losing everything remains enormous, since in order to obtain a high percentage, it is necessary to conduct trading very risky.
Characteristic signs of hype
If an investor hears promises of very high returns and beliefs about a guaranteed return on investment, this may indicate a fraudulent investment program. If the organization has fictitious investment objects, and the requisites and contact details are completely absent, then this will only confirm the initial assumption. HYIPs do not have a license and official documents. As a rule, the organizers cannot really explain the essence and direction of investments, but they trumpet loudly about an exclusive opportunity, additional promotions and bonuses. Therefore, before investing money in any project, an investor should look for reviews about this company on the Internet and consult with friends and acquaintances, and even better - with a competent specialist.