Every HYIP website begins with a description of a company’s activities. It might be an investment company that deals with real estate buying and selling. They might be traders on the stock market or foreign exchange market. Recently, a number of websites have appeared suggesting that a company is involved with cryptocurrency “mining.” Of course, there are countless other possibilities.
In all cases, the claim is made that the company is extremely successful at what they do and that they make a lot of money doing it. They also talk about the expertise of their staff and their experience in the field that the company is so successful at. The reader is led to believe that these folks may be among the best in the world at doing what they do.
These stories that companies tell about themselves are what we at Emily News refer to as a company’s “legend.” The definition of a legend is probably something like “a story that might be partially based on fact but has been changed — usually embellished — over time.” Popular examples might be the story of Robin Hood or the lost continent of Atlantis. There are also certain characters whose fame in a certain area was so outstanding that they are referred to as being legendary. Babe Ruth of American baseball comes to mind. Whereas the story of Robin Hood is probably mostly fiction, the legend surrounding Babe Ruth probably is not. Getting back to HYIP legends, we would like to think that the stories a website tells us about the company it represents are true. Like in the case of Babe Ruth, where we can look at the record books to verify the number of home runs he hit in a particular season, we would like to think that the claims a company makes about itself can likewise be verified. The investor is not particularly interested in entrusting his money to a company whose legend can easily be shown to be fiction.
These HYIP legends can consist of only a few lines that pretty much leave the investor guessing as to what the company is all about; they can consist of a number of paragraphs that provide a more plausible story; or, they can be a carefully crafted presentation complete with printed reports and brochures and even accompanied by a world-wide promotional program. Of course, the investor is more apt to trust the company with the more elaborate legend. If nothing else, it cost the company a great deal of money to put that legend together. This investment in promotional material would seem to be a decent measure of a company’s legitimacy. Or, is it just a smoke screen?
Although we at Emily News have a policy of accepting a company’s legend at face value, we are also very alert to contradictions and obvious lies in it that are red flags which cast serious doubts on the legitimacy of a company. We feel that it is our responsibility to pass along such information to our readers as it can be extremely helpful in enabling a person to make the decision of whether or not to invest. From this point of view, it is actually an advantage for a company not to say too much about itself on its website as a reviewer has nothing much to examine. All he can say in the way of criticism is that “the company didn’t say very much about itself.” And this is the type of thing you can expect to read in an Emily News review of a company that has this type of legend.
On the other hand, the company that goes to the time and expense of presenting an elaborate legend had better be careful that it hasn’t said anything that the careful reader will perceive as an obvious lie or at least an attempt at deception. So, while this type of legend is apt to attract great numbers of investors, it is also more vulnerable as, the more you say, the more possibilities you create for mistakes. Of course, if a company is 100% legitimate, there is no problem at all as whatever it says about itself will be true and cannot contain lies or inconsistencies. However, if a company is not legitimate, it had better be careful what it puts in writing…
A recent example of this is Ethtrade. Right now, this company is highly successful and is growing at an unprecedented rate. They have very polished promotional material and Ethtrade “clubs” are springing up in many countries to further promote the company. Unfortunately for them, they made a serious mistake in some of these promotional materials. They hired an actor to make a presentation and even used his face in one of their brochures where they referred to him by another name as a member of their management team. This is a blatant attempt at deception. Unfortunately, it is so skillfully done that very few people will catch it. But, knowing this, the alert reader logically wonders how much more of the Ethtrade legend is fiction. How much of it is Robin Hood rather than Babe? We have previously written about this situation in detail and the report can be found here.
The moral of the story is that it doesn’t matter how elaborate a company’s website is; it can still be fiction. So, be careful investors. Scrutinize the legends that you read; enjoy these stories. But, remember that they might be just that — only stories. And, read the Emily News blog. We review HYIPs regularly and offer our comments on their legends. Perhaps what we have to say about them will be helpful to you.
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