HYIP games

As a result of online forums and monitoring sites which have made customers of HYIPs more aware of the risks they are taking, a different sort of "honest" HYIP began springing up in the early months of 2006. Basically, the HYIP owner calls his or her program a "ponzi-structured game" where one should "not invest money one cannot afford to lose", and where there is "never a guarantee of earnings or refunds". They promise to pay out up to (for example) 95% of deposits, the rest going to hosting or other fees and the owner's profit.

In such "games", the first participants ("investors") may make a good profit and are encouraged to refer other people to the program because of referral commission, the fact that they have already made back their principal and are playing with profit, and that the more people who deposit money, the more money can be paid out to participants. In theory, strategies can be developed to maximize profit using these games (but, of course, since this is a zero-sum game, such strategies work by taking advantage of ignorance or errors by others). Some forum users may gain a reputation whereby others will trust their word that they have been able to withdraw their profits, encouraging others to invest in the hopes that more will invest after them and that they can therefore make a profit. As these games are by definition Ponzi schemes, it is inevitable that the vast majority of investors who are not at the top of the pyramid will lose their money.

These "games" might be considered as online gambling or lotteries. Gambling online is of questionable legal status in the U.S. and other countries, and lotteries are regulated in the U.S. and are clearly illegal online. However, the odds of winning cannot be determined, as one cannot know whether one is playing early enough to win money (that is, whether a sufficient number of new participants will follow). Thus, these activities are unlike a lottery or other forms of gambling, where a player has an equal chance of winning no matter when a ticket is bought, or where the odds of the game are known.

Furthermore, the promise to pay out a percentage of deposits is not a legally binding contract or regulated by a government agency.

Check out the HYIP monitors description there too:
http://en.wikipedia.org/wiki/HYIP

That was pretty much truth. Hyip isn't investment, its gambling game.

Wow didn't knew that this hyip games are so popular

Yes, hopefully this industry will become more transparent. I noticed that many program come and go and only games program stay for a while or admin still around.

Hi Fame, Jetzie, Lemon, Hummi, Amrutk

I think "interesting line here is "These "games" might be considered as online gambling or lotteries..." Where did the "illegal ponzi" go?

Im looking through this line...Gambling online is of questionable legal status in the U.S. and other countries.

hyip games are 100% gambling if the admin is honest and states everything.

i totally agree with you, ALL HYIP IS GAME... THEY ALL USE PONZY SYSTEM... NONE OF THESE SITE REALLY INVEST OUR MONEY (maybe not all, but 99.999999999999% is use ponzy system)

HYIP is pretty much like lotto, although it doesn't give the same feeling.

totally disagree because i had program (is closed right now because of damn kid too)
and everyone are in profit and im still doing payouts every week, so don't tell me nobody invest our money
anyway i am happy lol because i am in 000000000.1%

I completely agree with the top description. And the HYIPs are gambling whether the admin mentions it or not. Only... if they do, they are being honest. People that consider this a sound financial investment program for retirement or something are crazy.

Exactly, it just makes sense, doesn't it?
HYIP games perfectly fit well known gambling games, and that includes the importance of player's experience.
Less experienced players, are more likely to lose.

One thing though, I wouldn't confuse ponzi HYIP games with ponzi HYIP scams, which lie about reinvesttments and, or just steal outright. The definition above specifically relates to HYIP games that warn about their ponzi nature.