Unraveling High Yield Investment Programs (HYIP)
The need for people to make something out of the cryptocurrency investment breakouts has led to the introduction of many investment schemes. However, most of these schemes are a gateway to defraud desperate investors. One of the plans that have been used to make millions from cryptocurrency enthusiasts and investors is “Higher Yield Investment program (HYIP).”
This scheme asks people to invest with them by depositing a specified cryptocurrency like Bitcoin, and in return reward them with higher percentages which generally ranges from 4% to 6% daily. Some HYIP platforms even promise to give out 100% profit for two days.
HYIPs usually appear to be a good investment program in its early face, and later turns to become an entry of no exits, as an invested money may not go back to the depositor again, neither the profit. This method has been an easier way to scam people. Even though there are websites that give out 0.5% daily profits on deposits, and functions normal for the time being, the fact that it is an HYIP makes it dangerous. Most of these HYIPs have no visible founders. The websites often keep the identity of the founders secret and display fake certificates on their platforms to win trusts.
Some of the websites also display fake “days online” to appear as legit platforms. Some of them show their days online as 300. Meanwhile, their actual days online may be less than 30 days. They do this to deceive investors since people are more eager to invest with platforms that have proven to be legit for over a year. It is essential to understand that HYIP platforms that have also existed for over 800 days have no guarantee to survive forever. Forex Paradise, a popular HYIP website which operated about two years ago vanished without notice after staying online for almost 1000 days.
Research has proven that a lot of people are being scammed on a daily basis, and most of the fraudulent schemes use cryptocurrency to achieve their purposes. It is no surprise that Facebook and Twitter previously banned all cryptocurrency ads on their platform considering the way scammers were using them to get more preys.
Kindly note that any investment programme that promises you an offer which is too good to be true should be a suspect. Before you engage in any cryptocurrency related investment, make a thorough background check on the scheme before you make a decision.