Why HYIP and Ponzi schemes will not die

[robelneo]

This post is not about a particular HYIP or Ponzi scheme, but rather one reason why HYIPs and Ponzi schemes will not die, based on my experience.

HYIP and Ponzi schemes will not die because they are promoted by HYIP monitors, who are paid daily or weekly just to show they are paying.

These HYIP monitors are making money from these HYIPs and Ponzi schemes by crediting their accounts with funds, so they will continue to withdraw and update their status.

Even if an HYIP stops paying its investors, the monitors will still show it as paying as long as it receives its payment. They only change the status if they are no longer getting paid.

There are HYIPs that run for more than a year and continue to scam their investors, but still marked paying

Investors and newbies continue to trust these monitors because they profit as early birds.

[FinneysTrueVision]

Those 200% ROIs look very attractive. These sites rely on the power of persuasion. Even if people know they are risky, they are still willing to try them with a small amount of money if they see the word “paying” in flashy colors and some big numbers.

If you’re a long time Bitcoiner, you are probably familiar with fake cloud mining investments and sites claiming to double your BTC. Most people were probably aware that they were ponzis but sometimes greed got the best of them. Unfortunately, there were some people who invested not knowing they were likely to get rugged.

With all the degen things available to do on-chain, I don’t know if HYIPs are still as popular today. As long as the internet exists, they will probably still be around.

[hugeblack]

These scammers will continue promoting projects even if they generate less than a dollar a day, so it's difficult to stop them unless the cost of running this scam becomes higher than the return on investment—something that will only happen with increased awareness and questioning before investing.

[tabas]

Investors and newbies continue to trust these monitors because they profit as early birds.

Most likely it's because that many of them are uneducated about these scams and lack of knowledge about it. That's why with the new breeds of potential investors and victims who are looking for some way to earn more with their money, many are likely to fall for the hyips and ponzis without knowing it beforehand that they're about to get scammed by these investment schemes.

[albon]

It's not just HYIP monitoring sites that mislead investors and promote these platforms. If you search on YouTube/TikTok, you'll also find many large channels that encourage people to invest and double their capital, promoting these suspicious platforms under attractive titles and with huge financial promises. They often use fake payment proofs and bought comments to look legit.

In most cases, HYIP platforms pay these channels/HYIP monitors to promote them. They are part of the same trap used to lure victims.

Therefore, they should not be trusted, and no platform promoted by them should be tried based on what they claim about it. Always DYOR and avoid anything that promises guaranteed & high returns.

[Wapfika]

These scammers will continue promoting projects even if they generate less than a dollar a day, so it's difficult to stop them unless the cost of running this scam becomes higher than the return on investment—something that will only happen with increased awareness and questioning before investing.

Here in Philippines this ponzi/hyip still can get a victim because there’s a lot of uneducated users vulnerable to this scheme especially those living on province.

Referral system is worst here which people recruit close relatives ones they experience a payout on this scam scheme claiming it’s a sure profit.

I have relatives in province that recently a victim of this scheme last year because my cousin recruited them to invest.

[aioc]

Here in Philippines this ponzi/hyip still can get a victim because there’s a lot of uneducated users vulnerable to this scheme especially those living on province.

Referral system is worst here which people recruit close relatives ones they experience a payout on this scam scheme claiming it’s a sure profit.

I have relatives in province that recently a victim of this scheme last year because my cousin recruited them to invest.

People in the Philippines trust easily when the one inviting them is close to them, like the Godfather of one of their children or a close relative, because they think that person will not screw them over.
But unfortunately, it happened, and they only found out after the project was gone. The recruiter friend will even tell you that they are also victims, but in many instances, they are part of the scheme.
Filipinos should not trust easily, even if they are close friends; these scammers have no heart, they can scam even their relatives.

[YellowSwap]

The shortest answer to why Ponzi schemes will never end is because people always patronise, if after the few ones have been exposed, people decided not to ever join such things again there won't be any left today.

People like making money in the worst ways possible, anything that's easy money they will be lured and scammed, funny thing is they don't ever learn their lessons, when another Ponzi comes up again they will join..

I have no pity for people who like this way of making money, it's always like fetching water and pouring it all into a empty basket.

[Itz-prisigold]

The shortest answer to why Ponzi schemes will never end is because people always patronise, if after the few ones have been exposed, people decided not to ever join such things again there won't be any left today.

People like making money in the worst ways possible, anything that's easy money they will be lured and scammed, funny thing is they don't ever learn their lessons, when another Ponzi comes up again they will join..

I have no pity for people who like this way of making money, it's always like fetching water and pouring it all into a empty basket.

I agree that the demand for these schemes helps them to stay around, but I think you are too harsh when you say people don't always learn their lesson or that people should not sympathize with them. The thing is, most people who get involved in Ponzi schemes is not to make quick money. I'll say most of them join because they are being pressured, maybe they don't have any other better options or even because of incorrect information.

And secondly not everyone that involves in such schemes have ill intentions. Some actually believe that they have found a legitimate opportunity, especially if the offer is presented in a very convincing way or perhaps when they see that other people are saying that they "have made money from the platform" then they will drop their guard totally.

Sure, personal responsibility is very important but if we start saying "they deserve it", we are not solving the problem. The fact that these schemes keep happening is the problem, so I think awareness and education will help prevent these incidents, better than we always blaming people who fail victim.

[hugeblack]

Referral system is worst here which people recruit close relatives ones they experience a payout on this scam scheme claiming it’s a sure profit.
I have relatives in province that recently a victim of this scheme last year because my cousin recruited them to invest.

This is very unfortunate and dangerous. Ponzi schemes are not only economically damaging, as referral links and associated fraud can lead to problems between families and friends, especially since the person would not have invested in the service if it weren't for his friend's recommendation.

[Nathrixxx]

I'm sure not everyone has information about their existence and the moment you discover someone who is newly in contact with them we'll see such an opportunity as an opportunity for him to quickly grab, while they are always on the track to get people like that, who are obsessed about making profit through online opportunities, this is how they majorly get their targets from Newbies, but those that are already aware about their existence will never fall a victim.

[albon]

This is very unfortunate and dangerous. Ponzi schemes are not only economically damaging, as referral links and associated fraud can lead to problems between families and friends, especially since the person would not have invested in the service if it weren't for his friend's recommendation.

You’re right about that. Financial losses can be fixed, but broken trust takes a long time to heal.

Scammers know people trust their close friends and family more than strangers, that’s exactly what they exploit to make their scam work.

Referral systems and their high returns also play a big role in the growth and spread of these scam schemes as they are one of the strongest tools scammers rely on...

The shortest answer to why Ponzi schemes will never end is because people always patronise, if after the few ones have been exposed, people decided not to ever join such things again there won't be any left today.

These schemes continue because there’s always demand for them, so I agree with what you said. As long as scammers keep finding people seeking unrealistic profits, they will continue to spread under many different names and through many different websites.

[Strongkored]

It's not just because the HYIP monitor displays it, but also because of ignorance or lack of knowledge. This is also a trigger because people find it difficult to think logically and the need to make money quickly makes them more susceptible to fraudulent forms like HYIPs.
But did you know there's now a fraudulent method that seems more plausible? It's like a game. You play and deposit, continually building your account to earn more every day. Gradually, as deposits decrease, withdrawals become increasingly difficult.

[Zwei]

HYIP and Ponzi schemes will not die because they are promoted by HYIP monitors, who are paid daily or weekly just to show they are paying.

partially, yes, but imo, the main reason why ponzi schemes will never die is human greed. an entire civil war happened in Albania in the 90s because of ponzi schemes (it's very interesting history stuff), yet almost 3 decades later, people from all over the world are still falling for them.

Even if an HYIP stops paying its investors, the monitors will still show it as paying as long as it receives its payment. They only change the status if they are no longer getting paid.

There are HYIPs that run for more than a year and continue to scam their investors, but still marked paying

who would have guessed scammers will help other scammers as long as they are getting their share.