"Are All HYIPs and HYIP Monitor Sites Con Games"
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I don't pretend to know the inner heart of every person who sets up an HYIP or HYIP monitor site.
HYIP Sites are Con Games, and So are HYIP Monitor Sites
I'd like to believe -- as some HYIP investors evidently do -- that some HYIP administrators really do have good intentions in the beginning and keep your money after they fail within three months simply because they do fail and need the money.
I'd also like to believe that HYIP monitor sites are simply trying to provide a legitimate service, enabling investors to find legitimate HYIPs.
But the more research I do, the more I learn and the more I think about it -- the more convinced I am that the entire business is a fraud, a con. a rip-off and a scam from the get-go.
There's just no fact about HYIP investments that supports the hypothesis that any of them ever had honest intentions
(To be fair, I have seen critical and skeptical posts in various HYIP monitor site discussion forums, so that is one point in their favor. But it's not enough to make me change my overall conclusion that HYIP monitor sites are just as guilty as the HYIPs themselves in stealing people's money through fraud.)
Let's say someone really is an amateur forex trader who's had some success and really and truly wants to use OPM (Other People's Money) to make more money for themselves and to share the wealth.
They'd soon learn they were in violation of SEC or other regulatory agency rules and stop soliciting funds.
Even if they're in a country where such activity is not against the law, they wouldn't remain anonymous. They would accept all forms of payments, not just nonrefundable and untraceable forms such as e-gold. They would give good physical addresses and phone numbers. They would spend time bragging about their successful trading strategy (not give it away, but prove its success). If they weren't successful yet, they wouldn't lie and say they were. They would not risk your money in unproven trading strategies while claiming to have many years of success.
They wouldn't guarantee results because they know they won't make a profit on every trade
They wouldn't make outrageous claims. If a trader could really make 2% a day, guaranteed -- how long before they'd be richer than Bill Gates and Warren Buffett combined? How long before they owned all the money in the entire world?
And once they did fail, they'd make good all the money they owed to their investors. Because, by and large, honest people remain honest. If they started off with good intentions, but still failed, they'd refund at least as much as they could. If they were really honest, they'd try to make good their debts even if it took a few years.
They wouldn't creep away into the e-night just because the nature of the Internet makes that possible.
I've read most of the top Internet marketing ebooks -- and all of them emphasize that if you expect customers to send you their money, you must establish credibility. You must give them your name, physical address and email address. You must give them a money back guarantee. And so on.
If You're Not Blinded by Hope, Greed and Ignorance It's Easy to Understand HYIP and HYIP Monitor Sites are Con Games
It boggles my mind that people go to those HYIP sites, read that it invests in Macao casino gambling with a proven formula and therefore can promise a guaranteed yield of X% per day -- and then send their money via e-gold. No physical address. No name. No chance of getting their money back. No nothing.
And they really believe that casino gamblers in Macao are going to pay them X% per day!
What a testament to the stupidity of greed!
And I don't mean to pick on casinos in Macao. The same applies to the HYIP programs that claim to invest in forex trading, day trading, oil trading, gold trading, phony one-level matrixes of nothing, and of course the "honest" ones that don't even bother to tell you how they're going to pay you X% per day!
An HYIP monitor site that truly wanted to serve its visitors would not list obvious scams such as prime bank, gambling and totally unspecified methods. They'd do their own due diligence on all the HYIPs and give visitors the results, not just list how THEY'RE being paid.
So the obvious conclusion is that every HYIP program is a fraud and deceit of some kind from their very formation. Yes, they do pay some people money.
The term "ponzi scheme" comes from a fraud perpetuated by Charles Ponzi many years ago
He conned investors into putting their money into a phony deal, by getting the very first investors to make his claims look credible. He simply used the second investor's money to pay off the first! (While of course keeping a large profit for himself.)
If You Know About Investments, You Know Their Claims Have to Be Fake
Many other scams have followed this same pattern.
An HYIP scam opens, uploading its website. Its FAQ contains a few lines about how its experienced team of successful traders deal in platinum and gold. It announces its existence to all the HYIP monitor sites. They send some money via e-gold. Then they list the HYIP on their site.
The HYIP pays the monitor site its guaranteed return, plus a referral fee for every investor who come to their site via the monitor site's link.
The early investors see money posted to their e-gold account and make posts in the HYIP forum, "I'm paid! Thank you."
(Some people claim that such postings in HYIP forums are made by paid shills. Could be. Of course, they could also be totally faked by the HYIP administrator.)
Other investors find the HYIP and send their money in.
The HYIP uses this money to pay the HYIP monitor sites and the earliest investors.
A few months or so later, the flow of money from new suckers slows down so much that the HYIP administrator can no longer keep up the appearance of paying all their investors. They transfer all their money from their e-gold account, shut down the web site and disappear into the e-ether.
The HYIP monitoring site switches them to the "nonpaying" list
HYIP Monitor Sites Make Money on New HYIP Sites Until They Go Out of Business
They don't care, because they have made plenty of profit just from the referral fees they received. Plus, they're still listing all the current HYIPs and receiving referral fees from them.
The earliest investors have received more money than they originally sent, so they're in profit, so they lament that the HYIP went out of business, but are reassured that some HYIPs are honest after all. They go out looking for another one.
The later investors lost some or all of their money. They either learn their lesson or they resolve that next time they'll do more due diligence before they send off their money.
The HYIP administrator takes a vacation for a month or two, then sets up a new website (trading in European prime bank certificates of deposit), opens a new e-gold and announces its presence to the HYIP monitor sites
Of course, you could play the game of sending your money only to the brand new HYIPs, so that you'd always be in the ranks of the first investors, who do make a profit because you're paid with the money sent by later investors. But you'd be enabling the con artist to steal more money from those other people. If that doesn't bother your conscience, then I hope you wind up losing money anyway.
So there's no point in doing "due diligence" on any HYIP biz.
I mean, what part of "rip off" do you not understand?
All But the Early HYIP Investors Will Lose Money, and HYIP Monitor Sites Make Money by Referring Suckers
There's a site whose owner obviously understands that HYIPs are ponzi schemes -- but then he provides "due diligence" on specific HYIPs upon request. Who cares? Why bother?
Instead of doing WHOIS lookups, read annual reports of real companies and prospectuses of real mutual funds. Instead of hanging around forums where naive people still believe in Santa Claus, the Easter Bunny and the existence of a few honest HYIPs, read real investing books.
If you feel left out because you have only $50 to invest, put it into a savings account at your local bank, then work a second job and save that money until you have enough to make a real investment. To buy a real bond or a share of real stock or a real mutual fund.
If you can't do that, spend the $50 on something that'll give you pleasure.
Any way you save, invest or spend that $50 is better than sending it off to a scammer!
And that's what HYIP sites and HYIP monitor sites -- con games. Get involved at your own financial peril.
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