This article is for both HYIP investors and administrators (Admins).
In Part 1 of this article we compared the HYIP industry to the operation of a casino. We observed that casinos are still “respectable” even though more people that play their games will lose money than will win. This is an accepted fact. In contrast, we also observed that the typical HYIP always promises the investor that he will be a winner, but will always close resulting in there sometimes being no winners at all. We suggested that the investor accept the fact that the HYIP business is a form of gambling (Please see HYIP Insights #4 for more information) and that there will be winners and losers and that Admins of HYIPs design their programs such that this will, indeed, be the case. We further went on to suggest that, the more investors who come out ahead before a program closes, the more “respectable” an HYIP will be. The program that closes before any investor comes out ahead is truly a scam and is a disgrace to the HYIP industry. A casino cannot operate in this manner; an HYIP should not operate this way either.
So, the question the investor has to answer when choosing an investment platform is, “Which HYIPs are “respectable” and which are not?” There are no surefire answers to this question. However, HYIP websites give clues to their “respectability.” We have discussed many of these clues in previous articles in the HYIP Insights series. Let’s put them all in one place and list them here…
1. Most important, I suppose, are the net interest returns that a program promises to its investors. If it promises insanely high returns, like 20% or 30% or even more per day, the program is nonsense and is apt to close very quickly; there is no way that such a program can sustain itself. Please see HYIP Insights #14 for an article entitled “Obscene Programs” for more information on this. A “respectable” HYIP might offer a net return of 1% per day, but even programs offering returns at this level will ultimately close. We discussed this in detail in HYIP Insights #12. Please remember that ALL HYIPs will eventually close. Investors must accept the fact that this is a game.
2. Look at the “legend” the HYIP provides in its website. This is how it claims to generate the revenue it will use to pay the returns it promises its investors. If, for example, the company claims to have oil wells at various locations throughout the world, the program is nonsense. Oil wells are a multimillion-dollar industry and such an industry will not generate funds by means of $10 deposits in an online investment program. Furthermore, information on such a huge company will be available on a publicly accessible website. On the other hand, if a website claims to be involved with cryptocurrency trading, it might be legitimate as such a business can be conducted by an individual from his home office as well as by a team of traders. There are numerous other possibilities. With respect to these two examples, the oil well company is an obvious scam and would be paying returns from deposits made by more recent investors — a Ponzi scheme. The crypto trading company can possibly be for real although it might not generate sufficient revenue to pay the returns it promises to its investors and will ultimately fail for that reason. There is more information about “legends” in HYIP Insights #6.
3. Take a look at the level of the English language used in the website. Sometimes it is terrible. Although the owner of the website might not be a native English speaker, if his company is as successful as he says it is, he should be able to afford the service of a translator who can polish the website English such that it is completely clear. The same would apply to any language that a website uses. Poor use of the English (or other) language might be a clue that the program is nonsense. See HYIP Insights #2 for more information on this.
4. Many websites will provide a copy of an incorporation certificate from the United Kingdom as a means of proving a company’s legitimacy. Sometimes the website will also include the supporting documents for the certificate. If you take the time to read the supporting documents, you will probably find that the “corporation” is simply one person who owns all the shares of the corporation, is the only person on the board of directors, is the only officer, etc. And, sometimes this certificate is said to be the basis for a huge company with hundreds of employees, etc. Obviously, although the certificate is real, the company is a joke. It would be better for the HYIP if it did NOT publish such information as it is really proof that the company is simply a “one man show” — perhaps just some guy collecting deposits from investors while sitting on his sofa in front of his TV. Yes, it IS possible that a very small operation could consist of one person only. You will have to be the judge on that. We discussed all this in HYIP Insights #17.
OK, perhaps this is enough. To summarize everything, this article is an attempt to compare an HYIP with a casino. Casinos exist because it is human nature to gamble in an effort to make fast profits. Casinos are “respectable” even though there are winners and losers — perhaps far more losers that winners. HYIPs can also be “respectable” if the investor regards them as a form of gambling and accepts the fact that there will be winners and losers.
However, it is the obligation of the HYIP administration to devise programs that are sustainable to the point that there will, indeed, be winners. As already stated, the HYIP that closes before any investor comes out ahead is a black mark on the industry.
The foregoing list provides clues that investors can use in screening HYIPs in an effort to find those that are “respectable.” Likewise, the list can be an aid to administrators for the construction of an HYIP that is likely to appeal to a wide variety of investors.
Our sincere hope at EmilyNews is that the HYIP industry will evolve into a very “respectable” one. Yes, it will always be gambling. However, like the casino industry, it should only include programs that offer a fair opportunity for a goodly number of participants to come out ahead.
I hope this information is helpful.
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