Being a new kid on the block comes with many disadvantages. Credibility and skepticism are one of the many challenges we have encountered. We embrace skepticism, as we aim to be 100% transparent. PlutusX transitioning to a public-facing entity means that we are OBLIGATED to be transparent, regardless. Let’s dive into the main point of this article for you skeptical observers.
What is an HYIP
An HYIP is an acronym for High-yield investment program. An HYIP is a type of Ponzi scheme – an investment scam that promises an unsustainably high return on investment by paying previous investors with the money invested by new investors (Ref 1).
How an HYIP Operates
The Ponzi-Scheme is often marketed with 100%+ monthly returns as a guarantee to lure clients in. There is immense secrecy surrounding the HYIP funds and even false exclusivity to create a sense of urgency. It is possible for clients to make money. However, less than 1% can make money if they enter in early enough, profiting off the losses at other clients peril. As online payments have evolved to become more frictionless, HYIPs have become more prevalent.
Why We Are Not an HYIP
We display our monthly results and never make guarantees that past results are indicative of future returns. We even market the bad days and weeks, to show clients that we are in the real market and losing trades (days/weeks) are possible. We encourage clients to talk to their financial planners before participating in our MAM. We have a dedicated channel giving away each trade we take, with detailed technical analysis, for free. So if a client was suspecting us being an HYIP they could simply match our trades given for free and test the results themselves. We pride ourselves on financial literacy, transparency, and equal opportunities for clients who cannot participate in the MAM, directly.
We are trading forex with a 1:200 margin ratio. The concept of leverage is used by both investors and companies. Investors use leverage to significantly increase the returns that can be provided on an investment (Ref 2). This margin trading style can inherent significant risk which we tell clients about before participating. This margin trading style also allows us to leverage our client’s money to yield greater returns with a smaller portfolio size. Cool, right?
We have a community group where clients can freely talk about the highs and lows of the trading week. There, interested observers can freely ask the team questions or the members their experience. We have 24/7 customer support and focus on customer satisfaction.
We are NOT custodians of the clients’ money. We use an IFSC (Ref 3) regulated 3rd party broker to hold clients. The MAM technology segregates each client account separately giving the money manager trade-only access. There is a 0% possibility of PlutusX running off with the money as the MAM technology and the Broker act as a two-wall barrier.
Lastly, clients are allowed to view all trading activity live via their desktop or mobile device. They can monitor and withdrawal from participation at any moment they choose.
We understand why HYIPs can be appealing. The idea of seeing money double in 100 days sounds almost fantastic and unbelievable. Taking advantage of a proper trading strategy that implements safeguarded risk management copulated with 3rd party intermediaries, MAM technology and leverage 100% returns can be and is possible. Our mission since inception is to give the same investment opportunity to clients that otherwise would be exclusively reserved to the ultra-wealthy. We have democratized the wealth generating tools.
So why do people think we might be an HYIP?
Simple. We are providing services that are usually withheld from the public. Is this for everyone? No. But we do give everyone the same opportunity — end of the day the choice is yours to put it to use.
We are not financial advisors and none of this information should be misconstrued as financial advice. We strongly suggest that you consult your personal financial advisors. We suggest that you continue the research before coming to a decision even if this article is considered a portion of your research.
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