What are hyps

Hype is a financial pyramid fraud organization. Hype organizers promise investors a huge percentage of profits in a very short time. As soon as the flow of investors runs low, the organization ceases to exist.

Hype (HYIP) - a project built on the principle of a financial pyramid. Such a highly profitable investment program promises its investors income of up to 100% or more per day. Thus, investments in such fraudulent enterprises look more attractive than in other funds and companies offering not such a high interest rate.

Meaning of work

HYIPs are divided into long-term, medium-term and fast. Projects of the first type promise income up to 1% per day and can work for several years. For medium-term, the yield is 2% per day, and the life span can vary from one month to several years. Fast hyps promise 100% profit per day, while they can cease to exist even in one day or less. The payment of fabulous interest is carried out due to new income and attracting an increasing number of participants. Thus, the organization exists as long as there is fresh money recharge. As soon as the infusion ceases or is not enough to cover current obligations, it ceases to exist.

Hype can imitate and declare trading in the foreign exchange or futures markets, offer investors to invest in a promising project (startup) or bet on sports. Everything here will depend on the imagination of the organizer. Statements of this kind are not true and this is just a hype legend. In some cases, money may be collected, and then these funds are used to trade in the Forex market. This option can still be considered more or less stable, but the risk of losing everything remains enormous, since in order to get a high percentage, trading is very risky.