HYIPs are popular because they typically accept investments of $100 or less while offering high returns. The introduction of e-currencies such as e-gold and StormPay has made it easy for HYIPs to operate across international boundaries, and to accept large numbers of small investments.

Many HYIPs have turned out to be HYIP scams. HYIP SCAMS are Ponzi schemes, in which new investors provide the cash to pay a profit to existing investors, which they could then withdraw leaving nothing to pay the new investor. This approach allows the scam to continue as long as new investors are found and/or old investors leave their money in the scheme, known as compounding (because even higher profits are promised).

For example, one website that links potential investors to active HYIPs has a "blacklist" of more than 500 HYIPs that have gone out of business.

HYIPs are frequently advertised in spam emails, forums or mailing lists, since people are typically given a commission (for example, 9% of invested funds) when they provide a referral of a new customer.

IF YOU ARE INTERESTED IN HYIPs - RESEARCH BEFORE YOU SEND MONEY.

HYIPs typically claim to offer interest rates of 1% or more per day on invested funds; many claim to offer much higher daily rates reaching 250% a day, and these are definitely ponzi schemes. Sometimes even higher profits such as 700% daily are promised, but these are fairly obvious scams where money deposited will be "stolen" by the operator.

Such high interest rates raise the question: why would any business that can earn such profits, legitimately, bother to look for small investors? Such unusually high yields should tip off investors that there are serious risks involved.

IF YOU ARE INTERESTED IN HYIPs - RESEARCH BEFORE YOU SEND MONEY.

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