Open HYIP Review: Transparent bitcoin Ponzi scheme
Open HYIP refer to themselves as an “MLM Investment Club”.
There is no information on the Open HYIP website indicating who owns or runs the business.
The Open HYIP website domain (“openhyip.net”) was registered on the 21st of September 2016, however the domain registration is set to private.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The Open HYIP Product Line
Open HYIP has no retailable products or services, with affiliates only able to market Open HYIP affiliate membership itself.
The Open HYIP Compensation Plan
Open HYIP affiliates invest funds via bitcoin on the promise of a 100% ROI.
Referral commissions are available on funds invested by recruited affiliates, paid out via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Open HYIP cap payable unilevel levels at five. Referral commissions are paid out as a percentage of funds invested within a unilevel team as follows:
- level 1 (personally recruited affiliates) – 2.5%
- level 2 – 1%
- level 3 – 0.75%
- level 4 – 0.5%
- level 5 – 0.25%
Joining Open HYIP
Open HYIP affiliate membership is free, however free affiliates can only earn referral commissions.
Full participation in the Open HYIP opportunity requires an investment in bitcoin.
Conclusion
We are up front on how the program works: it is a MLM investment club.
We aren’t going to lie about how we are forex or commodities traders, we aren’t going to put up a stock photo of a good looking guy and call him our CEO. We won’t steal your money and run away or claim we were “hacked.”
The presented logic behind Open HYIP appears to be that by being upfront about being a scam, somehow Open HYIP not a scam.
People don’t avoid scams because fraudulent companies lie about their business models, their staff or the excuses they make up when they run out of funds.
People avoid scams because they’re scams.
Open HYIP openly operate as a Ponzi scheme, wherein newly invested funds are used to pay off existing investors.
All funds invested minus fees are put into the payout pool, once an hour the payout pool is processed as follows:
- The 10 oldest immature payments are selected.
- The amount in the payout pool is divided among them evenly up to a maximum of each investments maturity value.
- If there are any funds left, repeat from step 1.
As a new Open HYIP investor you deposit funds via bitcoin into the scheme and Open HYIP put those funds towards a 100% ROI on the ten oldest investments.
You in turn hope recruitment doesn’t stop otherwise you lose your money.
Here the oldest investments will be mostly, if not all owned by the Open HYIP admin(s). How many preloaded investment positions exist is unknown.
And that’s on top of the 2.5% the Open HYIP collects on every investment made.
Once recruitment inevitably dies out, the majority of Open HYIP affiliates will take a loss. This is true whether Open HYIP are open about scamming people or not.
A few early adopters might make money but otherwise, as with every Ponzi scheme, it’s the admin(s) who walk way with the majority of invested funds.
A while back we had a rash of these “honest” Ponzis on BCT. They were portrayed as “games” where everyone is in the know, an attempt to pretend that there are no victims, only consenting winners and losers.
The impossibility of knowing whether or not the front of the queue is occupied by the admin or surrogates makes this highly disingenuous, as OZ points out.
First time I’ve seen it married to an MLM tho.
I mean, they are at least honest about it. Admins only taking 2.5% is not alot. Looks more like the fee to pay server. lol.
Out of 10k, that’s only $250, which i doubt anyone would put that much into it. But out of $100, thats $2.50. I agree with tmfp’s comment, this looks like one of them “honest” ponzies.
^^ Cmon, you really think the admins haven’t preloaded this one?
The 2.5% is gravy.
At the looks of it, no, looks very amateur. I doubt they know what they are even doing. lol.
Looking at monitors, there are very few paid, so looks like they are starting from broke.
Ive kept up with this one as well, so its funny I run across your site. Good shit, you actually research, and not just talk shit, really enjoyed the read.
I just wanted to drop my .0002 bitcoin on here. Peace.