Tuesday, April 8, 2008

HOW HOW HOW?

How one can distinguish Ponzi from the real HYIP?

There are several signs indirectly
indicating the project may be fraudulent. First of all, it is great every-day payments.

If you are offered to be paid 40% per day think how the founders are going to provide
such profitability. Secondly, it is very big partnership payments. Serious high-yield
projects are always open for mutually beneficial cooperation; however, their main
goal is to bring profit from effective investing. That is why if you are offered more
than 10% for the referrals you ought to think whether the clients are the only source
of incomes. And, finally, it is a carelessly designed web-site and the content stolen
from other resources. Organizers of Ponzi projects know in advance that the program
will get closed in some time that is why they do not pay any attention to creating a
functional design and information content.

One more popular fraud forms is the so-called “Golden Games”. They are a kind of
miniature Ponzi introduced just for a few days or weeks. The only difference from
Ponzi projects is that they initially are positioned as financial pyramids.

Users invest money and then, if they manage timely to leave the program they have
some profit. If they don’t, they’ll lose all money invested. There are several versions
of the Golden Games but they all end up as ‘who-will-be-on-time’ game. Surely,
programs like this do not have any relation to serious HYIP projects.

Some people eagerly participate in the Golden Games and Ponzi projects. Of course,
such projects may quickly bring rather big profits however you should not forget how
quickly they can make you lose everything. Moreover, not always the skill to make a
decision quickly and calculate the time when you enter and leave the program right
can help you in programs like these. Often organizer’s friends and acquaintances
participate in such projects as stool pigeons; surely, only they will get the profit
because they have all the information from the inside. The risk level when you
participate in such programs is many times higher than in serious HYIP, and the
income probability is many times less.

If you reasonably decide to check your chances in Ponzi, remember even if you are
lucky, your profit will be created at the expense of other people. Do not forget that
the financial pyramids are illegal and their creators get a sever punishment from the
law-enforcement.

In case if you select an interesting HYIP project and fear it is a pyramid, carefully
study the terms stipulated by the program leaders. Analyze the offer, consider the
mentioned numbers with other ‘suspicious’ features indicated earlier. Start making
serious investments only when you make sure that the project is safe: at first invest
little. Only then, when you are sure your interests regularly get to your account,
invest the rest.


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