This program has STOPPED paying! Do not invest there!
Analysis of the Investment Plan.
In Part 1 of this review, I tried to lay out all the background information on the Enwy investment plan. Now, let’s “take it apart” and see how much money a person can earn by investing in it.
As I’ve indicated when analyzing other “perpetual” investment plans, there is a problem determining DNI for them as it depends BOTH on the interest paid and on the length of the plan. Everyone would like to think that a “perpetual” plan really is perpetual. Unfortunately, in the HYIP game, this simply doesn’t happen. So, we have to ASSUME a term for the plan and base the DNI on that. In Part 1 of this review, we determined that it takes 50 days or less for the plan to break even no matter what level you invest in. Let’s assume that an investor does, indeed, break even and calculate the DNI for various levels of the plan for lifetimes of 60, 90, 120, 180, and 360 days. It might even be interesting to see what happens to the DNI assuming the program were to survive for a LONG period of time like 1,000 or 5,000 days. Of course, I don’t think this is possible. But, it will be educational.
Fortunately, when a person has to make a huge number of calculations (77 in this case!) spreadsheets come to our rescue. Here are the results of all these calculations in spreadsheet form:
DNI for Different Levels and Lifetimes of Plan
Level % Days
** 60 90 120 180 360 1000 5000
1 2.0 0.33 0.89 1.17 1.44 1.72 1.90 1.98
2 2.2 0.53 1.09 1.37 1.64 1.92 2.10 2.18
3 2.4 0.73 1.29 1.57 1.84 2.12 2.30 2.38
4 2.6 0.93 1.49 1.77 2.04 2.32 2.50 2.58
5 2.8 1.13 1.69 1.97 2.24 2.52 2.70 2.78
6 3.0 1.33 1.89 2.17 2.44 2.72 2.90 2.98
7 3.2 1.53 2.09 2.37 2.64 2.92 3.10 3.18
8 3.4 1.73 2.29 2.57 2.84 3.12 3.30 3.38
9 3.6 1.93 2.49 2.77 3.04 3.32 3.50 3.58
10 3.8 2.13 2.69 2.97 3.24 3.52 3.70 3.78
11 4.0 2.33 2.89 3.17 3.44 3.72 3.90 3.98
Just so you are sure that you understand where these numbers all came from, let’s verify one of them. Let’s suppose that you made an investment at Level 5, the 2.8%/day level, and that the program had a lifetime of 180 days. Your total GROSS percent earnings for this period would be 2.8 times the 180 days or 504%. Subtracting 100%, you get your total NET percent earnings or 404%. Dividing this by the lifetime of 180 days, you get daily NET interest earnings (or profit) of 2.24%. Daily net interest, of course, is DNI. And, this checks with the table entry above.
First of all, this chart should tell you that, if by some stroke of luck, the program should survive for a LOOOONG time, the daily profit you will be making will gradually approach the gross daily earnings the program pays you. For shorter periods of time, of course, your daily profit (or DNI) can be considerably less. So, DNI is the name of the game. On one hand, we want it to be high enough so that we make a good deal of money. On the other, we are smart enough to know that, if a company offers investment plans having obscenely high DNIs, the program’s outlook for long term survival are nil. That’s what the article in HYIP Insights #12 (that you can read here) was all about. In the article we suggested that programs offering investment plans with DNIs less than 1% have a high probability of long term survival whereas programs with plans having DNIs higher that 2% have a low probability. Between 1% and 2% anything can happen depending on a host of other factors. And, of course, all of this amounts to only SUGGESTED guidelines as, in the HYIP business, truly anything can happen. But, it is still good to have a reference point. And that is what the Insights article provides.
Let’s apply this thinking to the Enwy program. First of all, let’s simplify matters a bit. The first four levels of the investment plan apply to investments below $100. Serious investors will probably not be looking at investments at these levels. On the other hand, the last three levels of the plan apply to investments of over $2,500. These will probably be beyond the reach of most investors. Of course, there will be exceptions in both cases. Be that as it may, let’s focus on Levels 5 through 8, only four levels, in an effort to likewise focus our thinking. These are likely to be the levels on which most investment takes place and will likely have the greatest effect on the survivability of the program (Of course, a couple of huge investments at level 11 would through the analysis completely off!).
So, focusing on these four levels and looking at the chart again, we see that after 120 days or so, all of these levels have DNIs of over 2%. While this is nice for the investor, it is not nice for the program. As time goes on, the DNI further increases up to the limiting values determined by the level of the program the investor has made his deposit it. So, from the point of view of DNI, the long-term survivability of the program is in question.
In addition, since the program is PERPETUAL, the obligation of the program to its investors NEVER ends. In programs with a finite lifetime, the investor must put NEW money into the program periodically in order to make additional earnings. There is no such thing here and, aside from high DNIs, this is second reason to doubt the long-term survivability of the program.
Well, from the point of view of the numbers, the prognosis for survivability of the program doesn’t look too good. However, there are other considerations. For example, an investor might be completely convinced that cloud mining — the revenue generating method of this program — is a foolproof way to generate funds. In such a case, the numerical analysis I just went through won’t have much importance. It all boils down to the investor performing his own “due diligence,” paying special attention to factors that seem most relevant to him in the case of the investment program he is considering joining. However, in ALL situations, we always advise caution and recommend that an investor make deposits in a number of different programs in order to diversify his portfolio. And, finally, the investor should never be swayed by promises of success made by a program. In short, never invest more than you can afford to lose. Good Luck!
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