Crypto-currency HYIPs are a fairly common form of Internet-fraud in the modern world. The word "HYIP" came into Russian from the UK and literally translated as narcotic or musical ecstasy, catharsis.
Interesting in the section: "Hyip" in the world of cryptocurrencies
In our time, the word "HYIP" has lost its former etymology, and instead of "ecstasy" it means the process of making money by attracting the financial means of investors to a project. In most cases, using the dictionary combination "Cryptocurrency HYIP ", it means deception or fraud associated with digital coins: mining scams, fictitious "farms", trading-HYIP.
HYIP-companies are a way of earning money on the Internet with high risk to burn out for depositors. The most popular cryptocurrency HYIP, for today, is the construction of a financial pyramid, disguised as an investment fund. Those who think that the financial pyramids died along with the MMM –are deeply mistaken. The scheme of the financial vertical is still valid today. Since, the cryptocurrency is a mysterious thing, shrouded in conjectures, predictions and legends about fast money - the financial pyramid in a hoax is easy to put together.
Cryptocurrency HYIPs of pyramidal type
Pyramid type of HYIP is the overwhelming number of "muddy" investment funds that promise their clients gold mountains in a short period of time, while building financial pyramid from investment contributions. Of course, those who made contributions first, right after the founding of the pyramid – get real benefits and money, well, all the others, as they say, in the span.
The principle remains the same as it was from the times of Mavrodi: the HYIP-project continues to work exactly until there are investors as soon as there are no potential investors – the project is curtailed, the top remains with the money, and the lower ranks of depositors are burned out.
In the case of the cryptocurrency, to prove anything, to go to court or call the police – it is unrealistic. The main feature of digital virtual coins is that they are decentralized and absolutely anonymous. Therefore, cryptocurrency HYIPs of pyramid-type are an ideal crime without consequences for scammers.
HYIPs with cryptocurrencies are divided into three categories according to the duration of the scam:
- Short-term HYIPs are investment projects that can close a few days after the first investment. As a rule, short-term HYIPs have large first installment amounts, and those who are at the top of the financial pyramid receive a really huge profit. Some people specifically look for short-term HYIP projects to make money quickly. Such HYIPs have an unusually high level of "profitability". Sometimes they can promise depositors up to 40% of the invested amount per day. Payments are always daily.
- Medium-term HYIPs – pseudo-investment program last from several weeks to several months. In rare cases, the medium-term HYIP can last for six months. The profitability of such pyramids for the depositor will not exceed 5% per day, there are less frequent weekly payments (up to 15%).
- Long-term HYIP pyramids – can continue their activities even within a year. They differ in the low percentage of profitability, plausible conditions of cooperation, low bar of the first installments and, of course, great popularity, advertising on thematic sites and forums. A distinctive feature of long-term HYIPs-payments are not made every day (sometimes once a week, and often even once a month). For accrual and acceptance of funds popular payment systems are used.
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What can be the HYIP-scam in the world of cryptocurrency
Hypes do not always encrypt for investment funds. With the increasing popularity of cryptocurrencies – they are gaining new and new forms. Now on the items we will consider the types of possible Internet HYIP with digital coins:
- Mining-HYIP, farms. You can easily guess about this type of scam on your own. The essence of the fraud is that scammers pretend to be a company that deals with cloud-hashing (cloud mining). People invest their money, buying tariff plans for the use of video cards and Asics, pay non-existent checks for electricity. At first, they are credited with money taken from other investors, and then – the farm, like the company itself, magically disappear with money. To secure yourself from such a "divorce" – transfer money in a fiat currency to the bank account of the company, then they can be returned. If cloud-hashing is fictitious, scammers oppose such a transfer option.
- Trading-HYIP. Some people who position themselves as experienced traders in the cryptocurrency market can promise an effective sale of the client's coins on exchanges. At the same time, they promise unrealistic benefits, for a small percentage of the profitability of each transaction. In fact, scammers are also building a pyramid. That is, the first investors profit in fact, but not for trading moves, but at the expense of other investors.
- HYP-Cryptocurrency. This is a non-existent cryptocurrency, which the HYPERS are positioning as very promising and are agitating to invest in its development. It's very easy to unmask this HYIP. On the website of real cryptocurrency should be:
- a wallet program available for free download, ideally there should be several for the most common operating systems;
- a link to the source, where you can read all the transaction blocks;
- exchange, where you can buy or exchange a cryptocurrency.
If the currency offered for investment does not have these three characteristics: with a high probability of probability you are on a HYIP.
Editor: Alyona Nabok