Two things:
1) You need to have high yield business model to be able to offer high interest rate to attract capital.
2) Business with sound model can get loan cheaper from bank and private equity firms.
Topic: Why are there no legitimate HYIPs? - page 3. (Read 8277 times)
Well, one might say that Maddoff's fund was a legitimate HYIP :-)
Depends what one considers legitimate.
Depends what one considers legitimate.
In what universe could Madoff's scheme ever be considered legitimate?
I am not sure if even Madoff would consider his scheme legitimate.
He just thought he could get away with it.
legitimate and HYIP doesnt really go together very often. If someone could make a huge percentage of profit doing some kind of trading, arbitrage, etc. why should they share it with investors. Even if they only had a small amount of capital to start with, if they are making such huge returns on their investments it won't matter in the long term.
Normally the HYIPs are not called HYIPs at the beginning, they end up losing money then realize they are trapped in HYIPs. We should know how HYIPs work and get away form them. High yield = high return.
Some HYIPs do not even pretend to be anything but just that, i.e. pyramid scams.
Normally the HYIPs are not called HYIPs at the beginning, they end up losing money then realize they are trapped in HYIPs. We should know how HYIPs work and get away form them. High yield = high return.
Well, one might say that Maddoff's fund was a legitimate HYIP :-)
Depends what one considers legitimate.
Depends what one considers legitimate.
In what universe could Madoff's scheme ever be considered legitimate?
Whatever what HYIP mean for everyone.
We need a legit HYIP (hedge fund) for Bitcoin (or any crypto).
Every single business following the HYIP model has turned out to be a ponzi scam.
I would think that a "legitimate" HYIP would be possible however. Think of the real estate business. If you have a rental property as an investment, it is possible to make a 8-15 percent annual profit. A business could buy a property and sell shares in the property which would return a weekly, monthly, or yearly profit. Shares could be resold once bought, hence leaving your initial investment intact.
<...>
Got any other ideas?
I would think that a "legitimate" HYIP would be possible however. Think of the real estate business. If you have a rental property as an investment, it is possible to make a 8-15 percent annual profit. A business could buy a property and sell shares in the property which would return a weekly, monthly, or yearly profit. Shares could be resold once bought, hence leaving your initial investment intact.
<...>
Got any other ideas?
That would not be a HYIP in the first place. HYIP is a type of Ponzi scheme, that is "an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors" according to the Wikipedia article about it.
HYIP stands for high yield investment program. Any alternate definition written on the wikipedia page is merely the view of the latest wikipedia editor given historical data. I'm not saying that you're going to find a legitimate HYIP, just that re-defining an acronym is an incredibly stupid thing to do, especially considering its an acronym.
I know what HYIP stands for, and now this acronym has turned into a euphemism being used in place of Ponzi scheme and meaning a special case of it. In short, the word has by now lost its meaning defined by the words it abbreviates.
Well, one might say that Maddoff's fund was a legitimate HYIP :-)
Depends what one considers legitimate.
Depends what one considers legitimate.
Every single business following the HYIP model has turned out to be a ponzi scam.
I would think that a "legitimate" HYIP would be possible however. Think of the real estate business. If you have a rental property as an investment, it is possible to make a 8-15 percent annual profit. A business could buy a property and sell shares in the property which would return a weekly, monthly, or yearly profit. Shares could be resold once bought, hence leaving your initial investment intact.
<...>
Got any other ideas?
I would think that a "legitimate" HYIP would be possible however. Think of the real estate business. If you have a rental property as an investment, it is possible to make a 8-15 percent annual profit. A business could buy a property and sell shares in the property which would return a weekly, monthly, or yearly profit. Shares could be resold once bought, hence leaving your initial investment intact.
<...>
Got any other ideas?
That would not be a HYIP in the first place. HYIP is a type of Ponzi scheme, that is "an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors" according to the Wikipedia article about it.
HYIP stands for high yield investment program. Any alternate definition written on the wikipedia page is merely the view of the latest wikipedia editor given historical data. I'm not saying that you're going to find a legitimate HYIP, just that re-defining an acronym is an incredibly stupid thing to do, especially considering its an acronym.
Every single business following the HYIP model has turned out to be a ponzi scam.
I would think that a "legitimate" HYIP would be possible however. Think of the real estate business. If you have a rental property as an investment, it is possible to make a 8-15 percent annual profit. A business could buy a property and sell shares in the property which would return a weekly, monthly, or yearly profit. Shares could be resold once bought, hence leaving your initial investment intact.
<...>
Got any other ideas?
I would think that a "legitimate" HYIP would be possible however. Think of the real estate business. If you have a rental property as an investment, it is possible to make a 8-15 percent annual profit. A business could buy a property and sell shares in the property which would return a weekly, monthly, or yearly profit. Shares could be resold once bought, hence leaving your initial investment intact.
<...>
Got any other ideas?
That would not be a HYIP in the first place. HYIP is a type of Ponzi scheme, that is "an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors" according to the Wikipedia article about it.
Finally, there is also an opportunity to profit by giving out loans. This includes mortgage loans. A business could be set up that allows investors to pool their money together and give out loans. The profits would come from the interest that is paid once the loan is repaid.
zopa.com? lendingclub.com ?
peer2peer lending is a thing already.
As someone who used to lend on Prosper, I'd advise to stay away. There's a reason a lot of these people can't get loans from banks.
Seconded. Prosper was a pretty decent way to invest early on but the lack of ability to get judgements and ever increasing default rate chased me from it. The bit coin lending platforms seem too similar for comfort.
Finally, there is also an opportunity to profit by giving out loans. This includes mortgage loans. A business could be set up that allows investors to pool their money together and give out loans. The profits would come from the interest that is paid once the loan is repaid.
zopa.com? lendingclub.com ?
peer2peer lending is a thing already.
As someone who used to lend on Prosper, I'd advise to stay away. There's a reason a lot of these people can't get loans from banks.
Do banks even loan money out to regular people anymore? Besides home mortgages of course.
I don't know, mine constantly is offering me tons of lending products I have absolutely no need for, whether I want them or not. I swear they've opened an overdraft line on 3 different checking accounts, and a HELOC I didn't ask for. God knows how they got me a HELOC without a single signature on my part, or even an appraisal of my property's price . . . :\
Finally, there is also an opportunity to profit by giving out loans. This includes mortgage loans. A business could be set up that allows investors to pool their money together and give out loans. The profits would come from the interest that is paid once the loan is repaid.
zopa.com? lendingclub.com ?
peer2peer lending is a thing already.
As someone who used to lend on Prosper, I'd advise to stay away. There's a reason a lot of these people can't get loans from banks.
Do banks even loan money out to regular people anymore? Besides home mortgages of course.
My bank gave me a business line of credit without me asking for it. Like $50K
Finally, there is also an opportunity to profit by giving out loans. This includes mortgage loans. A business could be set up that allows investors to pool their money together and give out loans. The profits would come from the interest that is paid once the loan is repaid.
zopa.com? lendingclub.com ?
peer2peer lending is a thing already.
As someone who used to lend on Prosper, I'd advise to stay away. There's a reason a lot of these people can't get loans from banks.
Do banks even loan money out to regular people anymore? Besides home mortgages of course.
I think your idea is very good
if there are HYIP like that, i would like to join
But, in reality. all HYIP i can find is ponzi / pyramid scheme
I do believe that is the entire point of them. You weren't "unlucky", it was by design.
This is how most HYIPs operate. They promise returns that are larger then what is realistic. Then they lure in customers by paying the early customers/investors the crazy rates. Once enough money has been invested in the HYIP, the backers will typically disappear, along with their customers' money. 
That's true HYIP works like that, similar to Ponzi / Pyramid Scheme. It's classic HYIP trick
if there are HYIP like that, i would like to join
But, in reality. all HYIP i can find is ponzi / pyramid scheme
I was very unlucky with HYIPs, every time I entered in, I was too late and in the final stage of the scam...
I do believe that is the entire point of them. You weren't "unlucky", it was by design.
That's true HYIP works like that, similar to Ponzi / Pyramid Scheme. It's classic HYIP trick
Finally, there is also an opportunity to profit by giving out loans. This includes mortgage loans. A business could be set up that allows investors to pool their money together and give out loans. The profits would come from the interest that is paid once the loan is repaid.
zopa.com? lendingclub.com ?
peer2peer lending is a thing already.
As someone who used to lend on Prosper, I'd advise to stay away. There's a reason a lot of these people can't get loans from banks.
I was very unlucky with HYIPs, every time I entered in, I was too late and in the final stage of the scam...
I do believe that is the entire point of them. You weren't "unlucky", it was by design.
I was very unlucky with HYIPs, every time I entered in, I was too late and in the final stage of the scam...
I do believe that is the entire point of them. You weren't "unlucky", it was by design.
Yes, only the first ones are winners and are payed by the remaining people.
But even if you are among the first, the website can be taken down just because of some big investor which brakes the ponzi scheme.
I was very unlucky with HYIPs, every time I entered in, I was too late and in the final stage of the scam...
I do believe that is the entire point of them. You weren't "unlucky", it was by design.
Jump to: