What is a HYIP?

[Anastasio]

According to wikipedia: http://en.wikipedia.org/wiki/High-yield_investment_program

A high-yield investment program (HYIP) is a type of Ponzi scheme, an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors. Most of these scams work from anonymous offshore bases which make them hard to track down.

Operators generally set up a website offering an "investment program" which promises very high returns, such as 1% per day (3778% APY when returns are compounded every day), disclosing little or no detail about the underlying management, location, or other aspects of how money is to be invested. The U.S. Securities and Exchange Commission (SEC) has said that "these fraudulent schemes involve the purported issuance, trading, or use of so-called 'prime' bank, 'prime' European bank or 'prime' world bank financial instruments, or other 'high yield investment programs.' (HYIP's) The fraud artists … seek to mislead investors by suggesting that well regarded and financially sound institutions participate in these bogus programs."[1] In 2010, the Financial Industry Regulatory Authority (FINRA) warned that "[t]he con artists behind HYIPs are experts at using social media — including YouTube, Twitter and Facebook — to lure investors and create the illusion of social consensus that these investments are legitimate."[2]

Though Ponzi schemes have existed since at least the early 1900s, the rise of digital payment systems has made it much easier for operators of such websites to accept payments from people worldwide.[3] Electronic money systems are generally accepted by HYIP operators because they are more accessible to operators than traditional merchant accounts. Some HYIP operators opened their own digital currency companies that eventually folded; these companies include Standard Reserve, OSGold, INTGold, EvoCash, and V-Money. StormPay started in the same way in 2002, but it remained in business even after the HYIP that it was created to serve was shut down by the State of Tennessee.[4]

Some HYIPs have incorporated in countries with lax fraud laws to secure immunity from investor laws in other countries. The operators have been known to host their website with a web host that offers "anonymous hosting". They will use this website to accept transactions from participants in the scheme.[5][original research?]

Some investors try to make money by attempting to invest in HYIPs at an early enough stage to create a return, and then by cashing out before the scheme collapses to profit at the expense of the later entrants. This is in itself a gamble as poor timing may result in a total loss of all money invested. To reduce this risk some of these investors use "tracker sites" listing the schemes and their current state. One expert states that there is not enough evidence to corroborate that tracker sites can actually help investors make more money.[6]

[hungergamespro132]

So? Thats why all hyips are in gambling section.

EDIT:

which promises very high returns, such as 1% per day

PFFFFFFFFFFFFFFFFFFFFFFFFFF we have hyips that promises 20% per day.

[theworldalive]

which promises very high returns, such as 1% per day

PFFFFFFFFFFFFFFFFFFFFFFFFFF we have hyips that promises 20% per day.

pfffffffffffffffffffffffffffffffffff :  http://[Suspicious link removed]/    (so system has a sense for scam i see)

[mailmansDOGE]

Because they're nor real investments. Sending your money to someone that promises such high returns and pays you with other"investor" money is gambling at best.

[rohnearner]

Gambling is better compared to investing in HYIP. or I'll say both are similar as you might win a few times but eventually you'll  get ripped off.
 The only way you can make money with HYIPs in long term is if you are the admin otherwise sooner or later you'll get ripped off.
 
MY 2 Satoshis

[chaosPT]

A ponzi who the lower line pay to the upper line

[1echo]

Hyip will be legit when it's still new, don't invest in big amount and quit when the member growing bigger caused they will be scam soon. 

[rohnearner]

Hyip will be legit when it's still new, don't invest in big amount and quit when the member growing bigger caused they will be scam soon. 

What you mean legit when new ..? many goes down within some days, they call it a quick rip off there is a whole bunch of admins out there who goes for a quick hunt. No one wants to deal with that amount of uncertainty with their money. 
Maintaining a safe distance from HYIPs is a better and wiser approach.

[Pkofet]

Hyip will be legit when it's still new, don't invest in big amount and quit when the member growing bigger caused they will be scam soon. 

Even if you get in early and get profits, I wouldn't describe it as "legit" as they just make false claims (eg. guaranteed returns, we are not ponzi, we earn bitcoin from forex trading, etc.)

[1echo]

Hyip will be legit when it's still new, don't invest in big amount and quit when the member growing bigger caused they will be scam soon. 

What you mean legit when new ..? many goes down within some days, they call it a quick rip off there is a whole bunch of admins out there who goes for a quick hunt. No one wants to deal with that amount of uncertainty with their money. 
Maintaining a safe distance from HYIPs is a better and wiser approach.

I have many accounts in some HYIP, all of them paid me in first invest, I knew they will be scam when they growing more popular.
When you know much about HYIP, I thought you knew which one will be going scam in some days or in few months.
I am not recommended HYIP, stay away is better option.

[bitmaster111]

HYIPS are directly waste of time and money . this is a way of earning if any one invests money after you . Ponzi you can earn when anyone lose their money in HYIP. it is totally scam I think if you calculate whole earning of HYIP investment you see profit is less and loss is more don't waste time in HYIPS.  no one is legit in hyip investment because every one admin comes into the market for scam

[jjc326]

Look I'll be honest on this forum people use that term but instead it's always a ponzi. If there was a safe high yield route they wouldn't be posting on a forum begging you to "invest".

[rohnearner]

Hyip will be legit when it's still new, don't invest in big amount and quit when the member growing bigger caused they will be scam soon. 

What you mean legit when new ..? many goes down within some days, they call it a quick rip off there is a whole bunch of admins out there who goes for a quick hunt. No one wants to deal with that amount of uncertainty with their money. 
Maintaining a safe distance from HYIPs is a better and wiser approach.

I have many accounts in some HYIP, all of them paid me in first invest, I knew they will be scam when they growing more popular.
When you know much about HYIP, I thought you knew which one will be going scam in some days or in few months.
I am not recommended HYIP, stay away is better option.

I have wasted some time in HYIP's too, ever heard of Royalty7 .? believe me no matter how confident you are about a program sometimes you just don't know when a surprise [not a good one though]will rip you off..!