What a disappointing last week and the weekend it was – it must be the Halloween which is to blame (horror stories come to mind). Quite a few programs went under during just a few recent days and I will actually not be surprised if someone (who is bored or has nothing else to say) would come up (again) with some new bad stigma, such as “Black Halloween” period of the year in the future. Well, I guess there are at least 365 more “chances” to invent such periods in the arsenal of HYIP community and publishers, so let’s rather hold the “horses”. Lets NOT jump to conclusions prematurely and instead just consider this to be a part of the HYIP world’s routine, because this is what it in fact is. If you happen to not yet experience such closures, then welcome to the reality “club”. You now know first hand that not a single HYIP can be considered as something guaranteed against failure and if any of you still think otherwise, please DO think again!

So, what now? I am saying – business as usual actually! However, what I CAN try doing today is to infer some lessons from all this and outline the conclusions, using these real life closure examples. My goal today is to make sure that every reader has these conclusions settled in their minds and apply them as tools for all their future HYIP choices. So, if you already made you new HYIPs selections, please read on and I am of course inviting you to share your points of view in the comments. If you are currently looking for new HYIPs to join, check out my Monitoring Page to find a few updates. Specifically, the new programs added most recently are: A3FX, Global Commerce and Money Era. I also was planning to join Neo Progress with deposit, but I am having second thoughts at the moment, due to communication issues I have encountered with their management.

HYIP closure lessons:

Let’s start with the worst of all current closures and that is PreMoney. The most “beaten up” red flag indicating the upcoming closure here was of course the announcement and introduction of some high paying, very short term new plans about half a month ago. Besides the warning on this from HYIPBlogger’s News publication, many other honest publishers alerted the public as well. What is surprising however is that HYIP admins keep doing this cheap “trick” and it has to mean that some people are still falling for it. This is also why I am again re-stating what must be the obvious and (LESSON 1) reminding everyone to stay alerted when similar new plans announcements are taking place at other programs. When this happens, first of all do NOT even think about investing and secondly, try to withdraw as much as you can, as soon as possible! Now, What makes PreMoney the worst scammer is their email to all program users with the request to enable API feature on their LibertyReserve accounts and provide the API key, supposedly to get paid. PLEASE, please please – (LESSON 2) NEVER touch your payment processor account’s API function in reply to requests from HYIP admins! API stands for Application Programming Interface and most of us don’t even know what this animal exactly is, which should be one good and sufficient enough reason to not temper with it. Please remember, only heavy merchandize sellers (including HYIPs) are using API in order to automate their payment processing needs, to save time. HYIP members and shoppers in general do not need this feature and without proper programming knowledge, enabling it is practically asking for big troubles. Basically, the threat here is that by having the API key in hands, the scammer can have direct access to the entire balance of your LibertyReserve funds and therefore can withdraw it all, without even the need to log into your account.

Soaret Investment actually had a very promising start and many had a lot of expectations from this program. Unfortunately things “went south” on the same day when admin cut the earnings percentage for already existent member deposits to comparatively a lot lower value. An action like this unconditionally breaches the program’s own terms of service and is the “red flag” to remember. Unfortunately, there is not much the deposited members can do at this point, except of trying to withdraw what is still coming for a few more days. What I would like to present as the LESSON 3 however is actually something of general nature and that is – HYIPs are very risky enterprises and seemingly premature closure of otherwise promising Soaret is a very good example of it. If you do want to try the HYIPs out at all, please prepare to experience losses first hand, therefore invest responsibly and diversely.

I think many will agree that closure of MirexGroup was perhaps the most NOT anticipated, therefore and first of all, the LESSON 3 above fully applies here. I have to point out that MirexGroup website is still online as of the time of this publication. So, the least what everyone can do at this point is to alert your fellow investors about the problem via any way you can. It is of course difficult to guess what exactly went wrong here, but my strong feeling is that eventually the program was managed badly. First off all, this website’s descriptive text passages do not “connect” to one another at all, but are rather some “stand alone” common phrases. Secondly, one single news announcement practically exposed MirexGroup as being a mere ponzi scheme about a month ago. Here is how this happened: The news publication of 05/10/2011 stated that their website is undergoing script and server upgrades and that no profits will be credited for two days. So, even if we were to try as hard as we could to believe that these guys are trading Oil, Gold, platinum or some wooden chips, how on earth can we connect the dots in our minds believing that such trading activity has anything to do with the website’s script? The script is there to merely keep the investor’s records straight, it is not the trading platform of its own. I mean, it MAY have been presented as one, but that’s not what the news article said. Now, more or less sustainable ponzi scheme has to grow and for that to happen it has to be proportionally advertised. This was NOT happening for MirexGroup as time went by, thus the “result” we see today. I guess the LESSON 4 here is geared more toward HYIP running admins rather than investors and that is – “Know better how to sell your ponzi to the public”.

Speaking of website content, I wanted to mention that while I do expect ReProFinance to continue payouts at least for a while, hereby I am cancelling my prior (mostly positive) statements about this program. In my opinion, the few of their most recent news updates truly spoiled things up for them, as far as program perception goes. One of their most recent updates announces the “globalization” via website content introduction in different languages, but I would rather they start from brushing up the English version first, especially their most recent news gobbledygook. Take for instance the recent news article “All investors of ReProFinance will be insured by ING”. The whole thing there is mostly senseless gibberish as if it was written by some drunk tax code writing “professional”. ING – what does this abbreviation stands for? I hope they do NOT mean that it is the ING Group (Euronext: INGA, NYSE: ING), the one which is a global financial institution. The ING’s own investment services are currently producing a negative 15% per year, forget 1.8% in per day profits. “The insured party is a legal entity Revendor Management Inc.”? Sorry, who is ensured, the investor’s funds or the Revendor’s? Fine, let’s “swallow” that as a typo (not good for a one paragraph announcement), but still, who will supposedly pay the insurance, Revendor  or RePro Finance, from who’s “reserve fund” and how the mysterious ING fits in all this? Lastly, I guess all investors can now start praying for ReProFinance to go offline for at least “14 days” or for it’s “assets value” to go under 80% to trigger that incredibly favorable insurance. Why not? It seems like the most perfect outcome, because according to this same press release, the insurance triggering events will cause all investing members to receive their “deposits plus all the profits”. Wouldn’t it be good to not have to wait for investment periods to end, but rather have it all at once per insurance claim?

To conclude today’s post I would like to say that considering the situation, right now may probably be a good time for the HYIP community and HYIP media publishers to put a bit more pressure on HYIP administrators in terms of raising program standards up a notch or two. Basically, what we as the observing and participating public should try doing is to (sort of) give way to those HYIPs that would meet and exceed at least some of our common sense expectations.

Happy walking through the wonders of the HYIP world.

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