20/06/2010. HYIP Crisis – Is the light at the end of the tunnel really a train?

Hi, guys! I hope you’re having a great Sunday and looking forward to the new week ahead of you. I’m not going to be reviewing anything tonight (come back tomorrow for that) because simply I would like to talk to you about something more important, namely the current difficult situation facing the HYIP industry. As you are probably aware over the last number of months the collapse of leading HYIPs like GeniusFunds, NanoMoneyCorp, GNI, PTVPartner, PanaMoney etc. all in quick succession of each other caused a domino effect where smaller (but stable) programs followed and investors became more cautious with their funds. Or what was left of them.

There’s been problems in the past, but not quite like this one. For example huge online HYIPs have collapsed, but there were always ten others to soak up the damage and remain unaffected. This time however it seems that the crisis began with too many people putting themselves in the position of depending on HYIPs for a primary income rather than just a supplement to a secondary income. And whatever about all the lies from GeniusFunds and PanaMoney, to the endearing credit of GNI at least they always warned (and explicitly warned) against putting yourself in that position. Did people listen? No, but that’s another story!

But the piggybacking of smaller programs on bigger ones contributed to this “domino effect”. So imagine PTVPartner investing money into GeniusFunds instead of the mythical silica mine. So after GeniusFunds closes the funds dry up and after some time the program had nothing left with which to pay to its investors. Of course that’s just a theoretical example. I’m not saying that’s exactly what happened in this case but you get the general idea.

The last month was especially hard on investors after the losses suffered by the afore mentioned closures. After suffering one too many bad experiences many of them decided to make up for the previous losses by investing in short-term programs. The problem was after receiving the first profit they (having been burned once too often before) don’t reinvest as they are afraid (and rightly so) of being scammed. This in turn causes too many admins to run their programs only for 1 or 2 cycles and therefore only those who get in early are able to stay in profit. Even one of the most famous characters in the HYIP world Roger Miller re-opened a program under his “own” nickname (almost a branded trademark by now!) only to realize that it couldn’t be sustained for more than two cycles.

Still there were many investors who tried to deposit into new short-term programs recently therefore making it very tempting for the admins to open more short-term programs paying after 5 or 10 days, collecting money and then vanishing into thin air on the very day when the first payouts on expiry were due to be paid. These are especially ugly tactics and were applied by many HYIPs. Recent examples include ExcellentChoice and EarnForexProfit which closed before anyone was in profit. It’s no wonder therefore that things are getting worse by the day while investors are getting more and more picky and regular short-term games are not in demand anymore. The admins should become more inventive in order to spark some public interest by offering some sustainable plans and unique solutions to make their programs stand out from the rest.

Which doesn’t always happen by the way as one program I was very enthusiastic about but failed to deliver was StaunchFinances. Another recent attempt to revive interest was made by the admin of FastBucksPro who took the unprecedented step of re-introducing the 50/50 rule. A sometimes admittedly unpopular rule from yester-year but one that made well-organized surfing programs in the past run for months and enable investors to make enormous profits. We will see what will come from this idea pretty soon.

So what we have now is the worst crisis in five years and possibly the worst crisis in the online HYIP industry ever. Even for smart investors it’s almost impossible to be in profits in the long-term.

But what are you supposed to do during these hard times? First of all, if you’re not ready to lose your money stop investing in HYIPs, at least temporary. I believe that in autumn we can expect some good new programs emerging which will help the industry get off its knees. You will definitely see the first signs of recovery if you continue to read my blog on a regular basis and participate in the discussions on the MNO Forum. The light at the end of the tunnel will be seen eventually, I can promise you that. Will the HYIP industry become the same profitable secret little niche for many of us that it used to be? Will it be a different modified form new to us all? I can’t say but I am still confident that the industry will get back on track eventually.

Two things make me confident of this. First of all historical reasons and then economical reasons. Historically if something is necessary then it becomes inevitable. Simple as that. If it needs to happen to benefit the greater population then the greater population will make it so. Not today, not tomorrow, but eventually.

As for economic reasons, that’s down to supply and demand. There is still enough people out there in search of an alternative way of earning money, and people not ready to surrender just yet. There is however a high turnover of people in this industry, so admins change, investors change, monitors change, etc. A new crop of more demanding investors will always emerge eventually not prepared to put up with the garbage handed up to them.

So what are you supposed to do if you still enjoy playing HYIPs? Then I suggest you to reduce your investment and invest only in HYIPs that have something to set them apart from the rest. Avoid short-term scams even if they are listed on MNO, except maybe really original ones that could get investors attention and really last for some time. Other factors include how a program advertises on MNO. If the admin is buying banners and goes with Premium listing it usually means that he’s quite confident that his program will last for some time. The problem is now that the majority of admins of short-term programs go for one week banner purchases which just means that they don’t expect their programs to last longer than a month. Usually if an admin buys a banner for a week and then doesn’t extend it for another one it just means to me that his program is going to collapse pretty soon. Every program needs advertising to sustain growth and make all the payments in time and the recent lies from the admin of InvestiHeaven (he was going to buy huge advertising 48 hours after telling me he didn’t need any!) prove my point. So keep a close eye on banners on MNO and adjust your strategy accordingly.

I will be also waiting your suggestions and tips for those who don’t want to get burnt but still like to play HYIPs. Please send them to abramsonp@gmail.com so I could publish them on my blog if they are reasonable ones.

So now that you’re aware of the current situation with HYIPs it’s totally up to you if you want to continue or not. I would suggest to simply play HYIPs for fun and not to throw enormous amounts of money around in any of them. Use AlertPay and SolidTrustPay more often for a possible refund and don’t take it personally if you lose. Everything is part of a learning curve. So when recovery comes and big HYIPs will launch once more you will play the game a bit better. And one more thing – never take HYIPs too seriously as they are all ponzi-games which will end sooner or later. I keep saying this in every single review but some of my audience seems to prefer not to listen. If you’re playing HYIPs be ready to lose (as well as win) and don’t sell your car to make profits from HYIPs. I’m not saying it’s impossible to make money from HYIPs (quite the opposite!) but you will just sleep better at night and more comfortably. Stay with MNO and I will be there for you during the bad times and the good times alike. This I can promise you, guys!

OTHER NEWS FOR TODAY.

EarnForexProfit became the latest scam, closing before the first payouts on expiry were processed. The admin even opened another plan offering 120% after 4 days but it appeared to be a trap for investors as everything was planned accordingly and his evil plan included the first payouts from both 4 day and 10 day plan expired on the same day the program closed. So EarnForexProfit is just another quick scam – please avoid investing in it!

The admin of the recently reviewed EForexTrust (read the review here) confessed today that AlertPay unverified hid account making it impossible for him to process pending withdrawals to them for the time being. He also told me that they were working hard to resolve this issue and I don’t think he’s lying considering that his program is still too new to scam. But do keep in mind that it’s AlertPay who have the final say there, and not the EforexTrust admin.

I was surprised today when my two withdrawals from AirlineFinance (reviewed here) both went to pending status in the morning. The admin wrote that big amounts had to be processed manually within 24 hours, however my withdrawals were not especially big at all. Fairly speaking the pendings were processed within a few hours so it’s still a good result. Anyway, please be aware that your payments from AirlineFinance which is paying 10% for 14 days and 160% after 14 days might not be processed instantly. You should wait up to 24 hours and not panic as the admin asks. This is the latest short update sent to the 450+ members of AirlineFinance just a few hours ago:
“We now have have 451 active members and over $38,000 in Deposits!
My interview was published on MoneyNewsOnline today. Check it out, you’ll learn something:
http://money-news-online.com/blog/2010/06/20/20062010-interview-with-the-admin-of-airlinefinance/
About instant withdraws:
A few of them fail and become pending. Do not panic. All withdraws are processed within 24 hours.
That’s all for today.
Best regards. James Hempington
AirlineFinance Admin”.

There was another short-term game was added to MNO Monitoring today – MoneyVIPClub. The program just launched today and offers three investment plans with payouts on expiry: 120% after 5 days, 150% after 10 days, and 220% after 20 days. The minimum to invest is different for each plan and ranges from $5 to $100. The choice of payment processors is pretty good and apart from the obvious choices like PerfectMoney and LibertyReserve it also includes popular verified processors like AlertPay and SolidTrustPay. Of the good security features included are SSL encryption and hosting on a dedicated Staminus server by DdoSWiz. The script is licensed from GoldCoders. Please be aware that due to the fact that MoneyVIPClub is a short-term and therefore high risk program invest only what you can afford to lose. The review will be published on MNO tomorrow so stay tuned for that, guys!

Here is the list of programs from my monitoring that paid me today:
MoneyTree, VezGroup, AirlineFinance, EforexTrust, FastBucksPro, EzProfit, KaizenPortfolio, CherryShares, BukInvest, GoldenInvestment, YesInvestment, XaresFunds, GroupUniversal and MoneyVIPClub (the first payment received).

That’s it for now. See you on my blog tomorrow and thanks for reading, guys!