CryptoArb Shut Down by US Government

Compounding.

It’s been a while since we’ve reviewed an HYIP that offers compounding.  CryptoArb might be the only program presently listed in the EmilyNews Monitor that does.

But, do you know how compounding works?  The idea is simple.  In the HYIP world, you elect for a program to take part or all of your daily earnings and automatically add then to your principal.  The result is that your principal will grow every day.  This, in turn, will increase your earnings creating a snowballing process that can grow your principal to a huge amount if the interest paid and/or the length of the investment plan are great enough.  Then, at the end of the plan, you can withdraw this principal with a big smile on your face.  This is the “Miracle” of compounding.

However, there is also a “Monster” lurking in the shadows for folks that choose to compound their earnings.  What happens if the program closes before the investment plan ends?  In this case, if you chose 100% compounding, you lose everything.

Please refer to HYIP Insights #11, for a detailed three-part article about compounding.  Very appropriately, it is entitled, “Compounding: Miracle of Monster.”

With this as an introduction, let’s do a numerical example that we will find is directly related to the CryptoArb arbitrage investment plans when used with the 100% compounding option.  Assume that you have invested $1,500 in an investment plan that pays you 1.5% interest daily for 60 days and that you decide to take advantage of 100% compounding.  To start off, on the first day of the plan, you would earn 1.5% of the $1,500 which is $22.50 (.015 x 1,500).  This is added to your principal to give $1,522.50.  On the second day of the plan you would receive 1.5% of this amount which is around $22.84 (.015 x 1,522.50).  This is added to the $1,522.50 to get a new principal of around $1,545.34.  And this goes on for a total of 60 days until you wind up with around $3,665.  So, subtracting your initial $1,500 investment from this, you would have made a profit of around $2,165.  Compare this to the profit that you would make is you did not use compounding.  Earning 1.5% of $1,500 per day for 60 days, you would receive total net earnings of $1,350 in the 60-day period (.015 x 1,500 x 60).  Quite a difference: $2,165 profit with compounding and $1,350 without.

In case you’re interested in seeing how the principal grows on a day by day basis for the entire 60-day period, take a look at the table that follows:

1.5%/Day    100% Compounding
Day Principal Interest Total
1 $1,500 $22.50 $1,523
2 $1,523 $22.84 $1,545
3 $1,545 $23.18 $1,569
4 $1,569 $23.53 $1,592
5 $1,592 $23.88 $1,616
6 $1,616 $24.24 $1,640
7 $1,640 $24.60 $1,665
8 $1,665 $24.97 $1,690
9 $1,690 $25.35 $1,715
10 $1,715 $25.73 $1,741
11 $1,741 $26.11 $1,767
12 $1,767 $26.50 $1,793
13 $1,793 $26.90 $1,820
14 $1,820 $27.30 $1,848
15 $1,848 $27.71 $1,875
16 $1,875 $28.13 $1,903
17 $1,903 $28.55 $1,932
18 $1,932 $28.98 $1,961
19 $1,961 $29.42 $1,990
20 $1,990 $29.86 $2,020
21 $2,020 $30.30 $2,051
22 $2,051 $30.76 $2,081
23 $2,081 $31.22 $2,113
24 $2,113 $31.69 $2,144
25 $2,144 $32.16 $2,176
26 $2,176 $32.65 $2,209
27 $2,209 $33.14 $2,242
28 $2,242 $33.63 $2,276
29 $2,276 $34.14 $2,310
30 $2,310 $34.65 $2,345
31 $2,345 $35.17 $2,380
32 $2,380 $35.70 $2,415
33 $2,415 $36.23 $2,452
34 $2,452 $36.78 $2,488
35 $2,488 $37.33 $2,526
36 $2,526 $37.89 $2,564
37 $2,564 $38.46 $2,602
38 $2,602 $39.03 $2,641
39 $2,641 $39.62 $2,681
40 $2,681 $40.21 $2,721
41 $2,721 $40.82 $2,762
42 $2,762 $41.43 $2,803
43 $2,803 $42.05 $2,845
44 $2,845 $42.68 $2,888
45 $2,888 $43.32 $2,931
46 $2,931 $43.97 $2,975
47 $2,975 $44.63 $3,020
48 $3,020 $45.30 $3,065
49 $3,065 $45.98 $3,111
50 $3,111 $46.67 $3,158
51 $3,158 $47.37 $3,205
52 $3,205 $48.08 $3,253
53 $3,253 $48.80 $3,302
54 $3,302 $49.53 $3,352
55 $3,352 $50.27 $3,402
56 $3,402 $51.03 $3,453
57 $3,453 $51.79 $3,505
58 $3,505 $52.57 $3,557
59 $3,557 $53.36 $3,611
60 $3,611 $54.16 $3,665

 

Now, let’s go to the “Investor” section of the CryptoArb website where they give an example of how compounding works.  Here’s what the website has to say:

“Compounding also plays a vital role in your total net profit. For example, if you make an investment of 1,500 USD with 100% compounding and calculate ROI using average 1.5% (your share would be 70% out of it), You will receive 22.50 USD the first day for period of 60 days,your daily ROI amount is added to your running investment capital so your profit increases day by day. Giving you a total return of 3,664 USD, in which 2,164 USD is pure profit on your principal amount of 1500 USD.”

Unfortunately, there are a number of serious mistakes in this paragraph.  I have pointed them out to the folks at CryptoArb suggesting that they correct their website.  Unfortunately, they haven’t changed a thing.  So, here’s an explanation of what is wrong with this statement — and maybe a warning to be careful about what CryptoArb has to say about money matters.  That’s actually a strange statement to make as THEY are supposed to be the experts in all this — not me.

First of all, an investment of $1,500 falls within the limits of the Basic plan which is 50 days long rather than 60 days which corresponds to their Advanced plan.  So, going back to the chart (which now you will see refers to the CryptoArb example), rather than your principal growing to $3,665, it will only grow to $3,158 — around $500 less than their statement says.

But, there is A MORE SERIOUS ERROR.  The CryptoArb statement says that you will only receive 70% of the company earning of 1.5% per day.  So, the interest that the company will pay you will be 1.05% per day (.7 x 1.5) RATHER THAN 1.5%.  If you redo the arithmetic using 1.05% for a time period of 50 days, you get the correct income for the CryptoArb example.  The principal at the end of this time period comes out to $2,529 which is over a thousand dollars less than the $3,664 figure given in the website.  The moral of this story is to always check the numbers given in HYIP website advertising.  CryptoArb is in the investment business.  Can they have made TWO serious errors by accident in one paragraph?  In case you are interested, here is the table showing how compounding works for the 1.05% interest case.

1.05%/Day    100% Compounding
Day Principal Interest Total
1 $1,500 $15.75 $1,516
2 $1,516 $15.92 $1,532
3 $1,532 $16.08 $1,548
4 $1,548 $16.25 $1,564
5 $1,564 $16.42 $1,580
6 $1,580 $16.59 $1,597
7 $1,597 $16.77 $1,614
8 $1,614 $16.94 $1,631
9 $1,631 $17.12 $1,648
10 $1,648 $17.30 $1,665
11 $1,665 $17.48 $1,683
12 $1,683 $17.67 $1,700
13 $1,700 $17.85 $1,718
14 $1,718 $18.04 $1,736
15 $1,736 $18.23 $1,754
16 $1,754 $18.42 $1,773
17 $1,773 $18.61 $1,791
18 $1,791 $18.81 $1,810
19 $1,810 $19.01 $1,829
20 $1,829 $19.21 $1,848
21 $1,848 $19.41 $1,868
22 $1,868 $19.61 $1,888
23 $1,888 $19.82 $1,907
24 $1,907 $20.03 $1,927
25 $1,927 $20.24 $1,948
26 $1,948 $20.45 $1,968
27 $1,968 $20.66 $1,989
28 $1,989 $20.88 $2,010
29 $2,010 $21.10 $2,031
30 $2,031 $21.32 $2,052
31 $2,052 $21.55 $2,074
32 $2,074 $21.77 $2,095
33 $2,095 $22.00 $2,117
34 $2,117 $22.23 $2,140
35 $2,140 $22.47 $2,162
36 $2,162 $22.70 $2,185
37 $2,185 $22.94 $2,208
38 $2,208 $23.18 $2,231
39 $2,231 $23.42 $2,254
40 $2,254 $23.67 $2,278
41 $2,278 $23.92 $2,302
42 $2,302 $24.17 $2,326
43 $2,326 $24.42 $2,350
44 $2,350 $24.68 $2,375
45 $2,375 $24.94 $2,400
46 $2,400 $25.20 $2,425
47 $2,425 $25.47 $2,451
48 $2,451 $25.73 $2,476
49 $2,476 $26.00 $2,502
50 $2,502 $26.28 $2,529

So, what are the points of this review?

  1. Compounding can make you a LOT of money
  2. But, it is also extremely risky
  3. CryptoArb offers compounding
  4. The CryptoArb website example of compounding has serious errors.

I hope this information is helpful to you.

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