TOP 5 real reasons for scam
Any hype project sooner or later comes to its scam and, as a rule, the real reason for completing its work remains unknown to investors. Admins are rich in imagination and often come up with the most fabulous stories about why they had to close the project, while most often, they are guided only thirst money or a cuckoo who went, the benefit of such earflaps not so much. In this article, we will talk in detail about the real reasons for closing hyips, which are often very far from the admin version.
1. Classic scam initiated by admin
Perhaps this will be a revelation for you, but HYIPs are not created at all in order for all interested investors to earn money in them. In fact, the goal of creating any hype in fabulous enrichment the admin, and it’s quite logical that most often the hype go to scam at the moment when the admin decides that he has already earned enough money and hurriedly draws up a charter for Canary Islands. When the pyramid builder beats off the cost of preparation and gets a good plus from above, he simply covers the bench and goes to the islands, spend his profit and enjoy life. Well, or distributes money to the poor - God knows where they are doing their millions!
As a rule, such admins close hype at the peak when there is good potential for further work, but the reputation in this case excites management much less than a solid jackpot. If you can’t get the fat bonus, you have to be content with what you have, and sometimes even close the hype, barely recapturing your costs of creating it. But in most cases, admins, of course, earn money, even though every second of them says that he worked at a loss. If managing HYIPs was such a loss-making business, would projects start on such a daily basis?
2. The outflow of funds exceeds the inflow
This reason can be called natural and it overtakes, as a rule, those councils that are willing to pay up to the last and work for the result. No matter how ideological the admin is, the hype’s life is fleeting and sooner or later comes to its logical conclusion. The admin can try to support hype to the last, buy ads, make updates, but as a result, at some point, the pyramid begins to crumble.
There comes a situation when the volume of new investments no longer covers the funds that are requested for withdrawal - in this situation, the administrator either closes the hype so as not to lose the cash desk or continues to work and tries to somehow reanimate his brainchild. Most often, councils do not try to balance the situation, but simply curtail their work.
3. Scam for technical reasons
This is perhaps the most banal scam when the admin made a fatal mistake or even neglected the technical preparation of his project. Moreover, these oversights are different: someone uses a leaky, stolen script, someone forgets about DDoS protection, and for someone it seems superfluous to choose a bulletproof hosting. All these mistakes of the administrator can lead to the fact that the project, even with working marketing, suddenly goes into the scam.
It is very important at the stage of preparing the project to pay attention to the smallest details, but if the admin is not very versed in this, then you should resort to the services of a specialist. Otherwise, the administration, even with the most altruistic attitude, will not be able to show the world its talent in managing hype.
4. Scam due to competitors
A successful project often causes the envy of competitors and, in the struggle for investors' money, admins are ready to put sticks into each other’s wheels. The least expensive method to reduce the flow of investors in a competitor’s project is to use black PR against it. This can be either a large-scale campaign of anti-advertising, or a small number of pads that will pour hype shit on the forums.
Larger projects are willing to spend big money to sink a competitor. In this case, hacker and DDoS attacks are common, which completely or partially paralyze the work of the fund and cause an outflow of deposits. Not in every case when competitors intrigue a successful hype, their goal is achieved. But even a small hitch in the work of the project can cause a drop in its rating among investors, and panic in hypes is synonymous with scam. Hypas are especially affected by the panic with the possibility of early withdrawal of a deposit with instant payments - their cash desk runs the risk of emptying before the admin recovers and closes the project.
5. Problems with payment systems
The project’s cash desk is stored in wallets in payment systems, and if the administrator has any problems with the EPS, due to which the money turns out to be frozen, this necessarily leads to a hype scam. Actually, many problems can be associated with payments, which will directly or indirectly lead to scam:
- The admin account seems to the payment system suspicious, and it freezes the funds on it. More recently, a payment system has become so aggressive towards hype Advanced Cash, which can now freeze the account not only of the administrator, but also of the investor, if she realizes that you are working with hype, or just blocked to dicks, and dealing with the end, for no reason (:
- EPS goes into scam - The phenomenon is relatively rare, but possible. So it was with Liberty Reserve, which retired and took a lot of money from both investors and admins, which led to the collapse of many hyps, now an incomprehensible situation is happening with Epayments. This week, everyone got Ripe Juicy African Bananas, and what will happen next, only Nobody knows.
- The admin wallet was hacked and its contents were withdrawn. If the creator of hype is not careful enough and does not think about security, then this could very well happen. To a large extent, hacking accounts affect new admins.
No matter what the real reason for the scam was, the result for investors is always the same - someone will have to lose their money. The administrator deliberately sets up the project or the good reason for this, in any case, the blame for this lies with the authorities, because the project is completed on its initiative, a fatal mistake, a flaw or lack of experience.