Risk in HYIP
By JackRabbit
@JackRabbit (71)
New Zealand
January 17, 2011 12:49am CST
I have serious gave a thought in investing in a an HYIP. From what I heard or seen mostly are cautious advice about how all HYIP have the potential to turn out to be Ponzi Schemes. Well I suppose I'll just need to be in and out quick enough before they swallow all the money.. Any other thoughts/concerns I should be aware of??? Share me with all the experiences you have had in the past with HYIP.
2 responses
@daveyboy54 (518)
• United States
17 Jan 11
The fact is all hyips are Ponzi schemes. Think about it for a moment. What legitimate financial institution would payout at the interest rates that they promise? The money is simply shifted around in the accounts. My investment goes to you when it's time for you to cash. When there are more cash out requests than there is money, guess what? They shut down and take what they have left. The only winner is the owner of the site. They are set up to fail. Forget them.
@siddharthlife (462)
• India
17 Jan 11
Potential? All HYIPs are ponzi schemes. There are absolutely no exceptions. The only way therefore is, as you suggested, to get in and get out in time. Of course, you will never know how long it takes to call out the scam. This is the real problem. There was a time when it was safe to invest in new HYIPs because they would be around long enough to build credibility through gullibility but now you have sites that appear and disappear the same day. It is therefore really hard to predict. As the site gets older, the risk of default increases as the site will find an optimal time when to exit with all the money.
There are better ways to make significantly higher amounts of money online, so my only suggestion would be to stay away.