CryptoArb Shut Down by US Government
The CryptoArb Mining Investment Plans.
In our “First Thoughts” Article about CryptoArb (that you can read here), we pointed out that the company is unique in that it offers TWO groups of investment plans so that it essentially acts like two HYIPs rolled into one. One group of plans is devoted to the cryptocurrency arbitrage investment activities of the company while the other group is devoted to the company’s mining activities. In this third part of the CryptoArb Review, we will talk about the mining investment plans. We already talked about the arbitrage investment plans in Part 1.
In our “First Thoughts” article we summarized the mining investment plans as follows:
The five plans in the mining group share the same names and investment limits as those in the arbitrage group. However, while you might say that the arbitrage group of plans are short to medium term, the plans in the mining group would probably all be classed as long term — with lengths running from 150 days all the way up to 200 days. The longest-term plan offers the lowest interest rate and has the lowest minimum investment while the shortest term plan offers the highest interest rate and has the highest minimum investment. With set interest rates ranging from 1% to 1.4%, the mining group of investment plans is similar to plans offered by the typical HYIP elsewhere. This set of investment plans also returns your investment at the end of the plan. It offers compounding as well.
Here’s the information the website gives about the mining investment plans:
Starter plan
1% per day for 200 days
$25 – $500
Beginner plan
1.1% per day for 180 days
$501 – $1,000
Basic plan
1.2% per day for 170 days
$1,001 – $2,500
Advanced plan
1.3% per day for 160 days
$2,501 – $5,000
Pro plan
1.4% per day for 150 days
$5,001 – $25,000
Analysis of the CryptoArb Mining Investment Plans.
When we analyzed the arbitrage investment plans (which have the same investment limits), we pointed out that most, if not all, investment activity will be limited to the first three plans. The fourth and fifth plans, the Advanced and Pro plans, with minimum investments of $2,501 and $5,001, will probably be out of the reach of most online investors. However, I should note that, unlike investment limits on some other HYIPs, these are not obscenely high. So, it is possible that CryptoArb might attract a few adventuresome investors to these high-end plans.
First, let’s determine how long it will take for each of these plans to break even. This is simple to do; you divide 100% by the daily interest you receive. For example, in the Starter plan you divide 100% by 1% to get that it takes 100 days for the plan to break even. Note that this plan is 200 days long so that you will break even half way through the plan. If you do this same arithmetic for the other four plans, you will come up with the following results:
Plan Name Plan Length Break Even
Starter 200 days 100 days
Beginner 180 days 91 days
Basic 170 days 84 days
Advanced 160 days 77 days
Pro 150 days 72 days
The mining investment plans all return your investment at the end of the plan. So, assuming that the program doesn’t close before the investment plan ends, your daily earnings will be pure profit or daily net interest. We refer to this as DNI and this quantity is probably the best indicator of how profitable an investment plan is. Looking at he DNIs of all the investment plans that a program offers, you can also get a good indication of how likely it is that the program will survive in the long term.
So, the DNIs for the CryptoArb investment plans will simply be the daily interest rates that the plans pay which are:
Plan Name DNI
Starter 1.0%
Beginner 1.1%
Basic 1.2%
Advanced 1.3%
Pro 1.4%
Discussion.
First, it is important to remember that the CryptoArb mining investment plans are all long-term plans. At 200 days, the Starter plan, which will probably be the most popular one with investors, is over a half year long. If you look at any monitor, it is rare that you will see an HYIP that has survived for this long. The next two plans in the line-up, the Beginner and Basic plans, are around a half year long. So, they are in the same boat. If you look at the time to break even for these three plans, they are all in the neighborhood of three months. This is also a long time in the HYIP world. It is certainly not impossible. However, a person should be thoroughly convinced that the program will be a survivor before making an investment. This might hinge on an investor being convinced that the “Legend,” the story an HYIP tells about how it generates its revenue is true (See an HYIP Insights article about Legends here). It might also hinge on the interest that the company pays to its investors. If it is exceptionally high, for example, it would be unlikely that the program could survive in the long term. That’s what we’ll discuss next.
In HYIP Insights #12 (that you can read here), we suggest that programs offering investment plans with DNIs less than 1% might have a good chance of long term survival while programs offering plans with DNIs greater than 2% might have a slim chance. Between 1% and 2% was a gray area where things could go either way. Well, looking at the three CryptoArb plans that are most likely to be used by investors, we see DNIs of 1.0%, 1.1%, and 1.2%. These are at a level where, with good management practices, the program could, indeed, turn out to be a long-term survivor.
Finally, let’s take a look at how profitable the CryptoArb mining plans are. To do that, I usually convert things to weekly income. This is a personal preference. However, since paychecks are usually on a weekly basis, thinking of investment earnings in the same time frame seems to make sense. Anyway, multiplying the DNIs of the five investment plans by seven, you obviously come up with weekly rather than daily profit. Here’s what you will get if you do this:
Plan Name Weekly profit
Starter 7.0%
Beginner 7.7%
Basic 8.4%
Advanced 9.1%
Pro 9.8%
In HYIP Insights #23 (that you can read here), we suggested that a “sensible” level of weekly profit to aim for from an HYIP is between 5% and 10%. We suggested that this range is high enough to provide an attractive income yet not so high that the program is obviously a fake and will die quickly. Well, the CrytoArb investment plans are right in this sweet spot; you couldn’t ask for better.
Conclusions.
CryptoArb has five investment plans in their “mining” group of plans. The investment limits are such that most investors will probably opt for the first three plans having the lower minimum investment plans. These three plans are all in the neighborhood of a half year long and break even in around three months. So, they are risky from the point of view that only a few HYIPs survive for this length of time. However, in their favor, the interest paid by CryptoArb is at a level where it might, indeed, be possible for the program to be a long-term survivor. The interest paid is also at a sensible level where the investor should be well-satisfied with his income from the program.
I hope this information is helpful to you in evaluating the CryptoArb investment program.
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