QUOTE (Uncle Awesome @ Jul 29 2008, 07:21 AM)

This little Cash Giveaway is for the best response to the following question in at least 7 Sentences. Winner will be awarded $20 Liberty Reserve. One entry per user. Contest will end August 11th at midnight EST, and winners announced soon after that. Please post your LR account after your short essay:
What are your opinions on the current state of the HYIP Industry ? What is it lacking, and where do you think HYIPs are headed?
HYIP - always there will be a HYPE for this HYIP industry.
At one time, HYIP was used to refer to an investment program which may have offered a high return on investment.
But today, a High-Yield Investment Program (HYIP) is a type of scam. The term HYIP was abused by the operators of scams to camouflage their scams as legitimate investments. Due to this overuse by the operators, HYIP has become synonymous with scam.
This HYIP was developed in 1920, Mr. Charles Ponzi informed curious investors that he could increase their spends by 50percent in 45 days. The immigrant was highly successful; thereby building a franchise; eventually scamming over 40,000 people to the sum of $100 million.
The high yield markets’ success or failure is now fundamentally based on the participation of investors. In essence, investors are paid “payouts” according to the investments of referrals, not the industry’s personal accomplishments. Consequently, the seasoned investors receive profits only if the new investors join a high yield program. This concept alludes to investment schemes that may be considered misleading or even fraudulent.
HYIP operators generally set up a website offering an "investment program" with returns as high as 45% per month or 6% a day that discloses little or no detail about the underlying management, location, or other aspects of how money is to be invested because no money is invested. They often use vague explanations, asserting little more than that they do different types of trading on various stock markets or exchanges to generate the returns they purport.
HYIPs are able to succeed in collecting large sums of money for the operators because the initial payoff to first and second round participants helps the scam to continue spreading by word of mouth as long as new participants are found and/or old participants leave their money in the scheme in hopes of gaining interest on their principal payment.
HYIP monitors, or HYIP listing/rating sites, are personal or commercial websites that list and/or promote HYIPs for referral commissions. The monitor charges each HYIP a listing fee which is usually then invested into that program, although there exist free listings and occasionally monitors which invest their own money. The monitor then labels the HYIP as "Paying" or "Not paying/Scam" depending on whether interest is received within the terms specified by the program. Monitors also allow other HYIP investors to rate and comment on the programs, based on factors such as promptness of payouts and responsiveness of the HYIP administrator. Programs with higher ratings achieve higher rankings on the monitor sites, which coupled with a "Paying" status may entice more investors who rely on the monitor.
In some cases, HYIPs may only pay monitor sites to keep their "Paying" status visible, but do not pay other investors. As HYIP monitors are not affiliated with the HYIPs themselves, they are unable to prevent investors from being scammed; they neither help to recover lost funds nor track down the scamers. Promoting or perpetuating such schemes is a criminal offense punishable by jail terms or fines in most countries. That the monitor sites place disclaimers saying that they "do not promote the programs advertised on their website" does not absolve them from criminal liability.
In order to generate a "paying" status early (so that future visitors will see it) and maintain it for the longest possible time, newly opened HYIPs list their site quickly as well as constantly pay monitors their interest on time. Added to the fact that many monitors invest the listing "fee", and that a commission is received on each deposit made by people who visit the HYIP via the monitor, they are the most likely to profit when a program runs out of funds.
HYIP owners can manipulate monitors and forums, by paying people to comment positively or by using a range of IP addresses or proxy servers in different locations so that "paying" votes appear to come from around the world. This allows the HYIP to rise up the rankings more quickly than others, giving participants a false sense of security. Additionally, even if they know it will scam in the future, some participants will also rate new HYIPs positively until the HYIP stops paying, because they want more people to invest after them in the hopes that the program will last longer. Future scamers can also build up a good reputation on forums for a large payoff once most forum members trust them.
The fact that many of the participants are aware of the risk and know that most HYIP's are fraudulent but still choose to put money in the programs anyway.
because of the craze towards cash.
if someone tells i will double your money in 1 week, we humans definitely want to try it and 25 % will definitely try it.
its the human nature.
so definitely the future of HYIP will be great, no matter whatever scams and other things happen.
But to keep this HYIP avoid from scams,
strict regulations should be made such as
1. All HYIP industries should have a valid residential address, valid telephone number, 24 hours live chat facility
2. They should atleast have guaranteed cash-back facility even if they cant give profits to investors
3. These HYIP industries should clearly mention where and how they are investing
4. There should be some reputable organisation which should give license and copyright for these HYIP sites
ALL those HYIP industries which cant able to meet any of the requirements should be identified as scams and they should be banned.
By doing such things, the future of HYIP industry will be beautiful and great with 0 % scams..
but if we cant impose such regulations,
then the future of this HYIP industry will be more beautiful and greatest with 100 % scam..
So its upto us to decide the future of HYIP industry either in positive or in negative manner.
Surely even after 10 years or also 100 years or even 1000 years,
there will be no change in HYIP industry..
there will be always a hype for HYIP industry..
but atleast we can save the hard-earned money of innocent individuals for imposing some strict regulations on these HYIP industry.
No matter whether i will win or lose in this contest, but i will be extremely happy if sometime soon or later some strict regulations are imposed on this HYIP industry, so that no kind of scam arise
So people please please react fast and lets soon make this HYIP industry boom with no scams and no threats and no cheats
Thank you...
liberty reserve account number - U8306151
account name - vijayasundhar