HYIP
HYIP stands for High Yield Investment Program
HYIPs gained popularity when e-currencies such as e-Gold , StormPay and others were introduced. HYIPs allow investors to invest even in a very small quantity, making the program very popular and easy to follow. An example of HYIP is Autosurfing websites.
As with other investments, high gain means high risk. Many HYIP programs were proven to be scams. Most of the scam HYIPs use the ponzi or pyramid scheme, in which new investors provide the cash to pay existing investors. The process continues as long as new investors are found, explaining why even fraudulent funds are able to provide the promised payouts initially.
HYIP schemes are frequently advertised in spam, since people are rewarded for providing referrals of new customers
Interest Rate
Most HYIP companies offer an attractive interest rate of about 1% per day or more. When annualized, it is clear that this yield far exceeds even the most generous yields available in the financial markets (through legitimate bonds). This unusually high yield should tip off investors that there are serious risks involved. Any HYIP scheme that does not acknowledge the risk, or claims to guarantee repayment of principal, is likely a scam.
HYIPs gained popularity when e-currencies such as e-Gold , StormPay and others were introduced. HYIPs allow investors to invest even in a very small quantity, making the program very popular and easy to follow. An example of HYIP is Autosurfing websites.
As with other investments, high gain means high risk. Many HYIP programs were proven to be scams. Most of the scam HYIPs use the ponzi or pyramid scheme, in which new investors provide the cash to pay existing investors. The process continues as long as new investors are found, explaining why even fraudulent funds are able to provide the promised payouts initially.
HYIP schemes are frequently advertised in spam, since people are rewarded for providing referrals of new customers
Interest Rate
Most HYIP companies offer an attractive interest rate of about 1% per day or more. When annualized, it is clear that this yield far exceeds even the most generous yields available in the financial markets (through legitimate bonds). This unusually high yield should tip off investors that there are serious risks involved. Any HYIP scheme that does not acknowledge the risk, or claims to guarantee repayment of principal, is likely a scam.
posted by Ash @ 1:15 PM
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