Core Causes and Consequences of Deposit Glut in HYIPs

Golem

Golem

Representative
Representative
Jun 18, 2018
79
18
Points
-10
Deposit Glut is a situation when depositors invest too much in the project, and the load on the cash account becomes too large, which leads to the project going scam. Investing excessively in HYIPs is especially dangerous at the start of the project and is almost always a sign of the scam.

HYIP Types that are Prone to Money Pelting

First, when assessing the risk of money bombing, one must understand that not every project can be invested excessively.

Low-interest HYIPs are almost not prone to money pelting and can safely withstand the strongest load on the deposit. The fact is that they have a natural protection - a low percentage. Low-interest projects do not need to pay large returns to investors, and their plans are usually very long.

Mid-interest HYIPs can already be pelted and there are numerous examples of these. They have decent interest, and the plans are shorter. But still, the admin has room for maneuver.

Core Causes and Consequences of Deposit Glut in HYIPs


High-interest HYIPs are more prone to money pelting. There is a whole list of reasons why high-interest HYIPs run the risk of being pelted with money: short plans and very high interest make them the riskiest as for being pelted with money and going scam fast.

Investors try to invest in high-interest HYIPs at the start, because the lifetime of such projects is not great, and there is the greatest chance of earning only at the first stages. The intrinsic banal greed blinds the mind and people invest in HYIPs in pursuit of high interest sometimes without analyzing them properly.

Why is Deposit Glut so Bad?
Scam itself is not something strange or horrible. Any project goes scam in the end, it's a matter of time. What is important here is the time during which the project operated and the investors’ profit but not the fact of its going scam. In the case of money pelting, scam comes very quickly, almost at the project start, which is bad, because:

A HYIP has operated a little and realized only a miserable percentage of its potential. The administrator could have plans for the project development so that it could work much longer. Investors having pelted the HYIP with money invested a lot of money, and are sure to be in the red.

As you can see, a glut in the funding of the HYIP leads to premature scam, and both investors and the administrator suffer from this. Despite the administrator returning his investments in any way not staying in the red, I reckon him to be a victim, because he had other aims preparing his project. It is not about losing anything, but about failure to get enough. No, I am not sorry for the admin, the administrator is the one who is to blame, but more on this later.

To view all my posts, please follow the link.


Who is Guilty of Money Pelting?

In order to determine the guilty, you need to make a list of suspects and versions for each of them, and these are:


The investor. His role in money pelting is significant, and the involvement is direct. The investor pelted the project with his money making it impossible to develop and work.

Monitors and blogs. It was they who led the investor who pelted the HYIP with money destroying it by that.

Core Causes and Consequences of Deposit Glut in HYIPs


The admin. In fact, the project admin is the only guilty party here. It is the admin who must forecast the permissible load on the HYIP, both as for deposits and payments! It is the administrator who must protect the HYIP from money pelting! The admin’s task is to think over the smooth development of the project, excluding both money pelting and periods of the project being quiet!

The admin alone can and should protect his project from money pelting. Monitors and blogs post advertisements for which they were paid, it is the admin who should think wise and know what effect this or that advertisement will cause. Investors may not know the HYIP capacity and do not know the amount of investments reliably, they simply do not have the opportunity to know all this.

Yes, it is not easy for the admin, there are a lot of problems with projects in addition to money pelting, and even experienced admins cannot always manage the project perfectly. As a result smart projects go scam for various reasons, let us assume it happens rarely. In general, the admin’s work is not simple, on the one hand, the project should be attractive, profitable and promising, and on the other, you need to do something for the project not to be invested excessively at once in spite of it being attractive. But the administrator also earns much more, so the golden rule works — "if you want more money — use your loaf».

How to protect yourself from Funding Glut?
As we have already found out, only the administrator takes actions against money pelting. It is only he who can and should do.

What can the admin do against funding glut?

Accurate and gradual purchase of advertising. An experienced admin trying to avoid money pelting and fast scam buys advertising accurately, gradually. One should avoid sharp promotion after which a large number of investors will come to the project at once.

Restrictions on payment systems. An experienced admin seeking to provide a soft start and smooth development can make it available to replenish a deposit in one or two ways. For example, investing in a project can only be with bitcoins. Bits are not used by everyone and this will allow cutting off some investors from participating in the project. When the HYIP gains enough speed, the admin opens other ways of replenishing the account.

Limiting the size of the deposit at the start. At the start, some investment plans may not be available or there may be a limit on the size of the deposit.

If all or some of the items were present in the project, the admin is sure to be making efforts to counteract money pelting. And it also shows that the admin is experienced, and therefore, makes efforts not only to counteract money pelting, but some other possible problems too.

Core Causes and Consequences of Deposit Glut in HYIPs


Can the admin want Funding Glut?

Oh, yes, believe me, it may take place. I will try to draw a portrait of such a person:

He spent on creating a project $ 458.5 taking into account a design, hosting and other.


He spent on advertising another 621.3 $, bargaining with some, agreeing with others.


From the first deposits he orders more advertising, leaving a penny for payment.


He translated all the texts using online translator.


HYIP website images were taken from public access.

Such a person will not be against money pelting and will gladly escape with $ 10,000-$ 15,000 in his pocket. We are not interested in either him or his money, we are interested in the opportunity to earn on such a project. I declare earnestly that there is no such possibility. That's why my blog not just monitors the HYIPs, but also seriously selects them. I'm only looking at promising projects, not just fast scams catch-as-catch-can.

To view all my posts, please follow the link.
 
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