Smart contracts how to participate in them?
As is well known, the HYIP industry has a certain spontaneity and its own development dynamics. Financial pyramids have existed for a long time and their essence is the same, but the appearance changes from time to time. Therefore, such projects will never die, they only change into something new. Back in April - May 17, all admired the possibility of a cryptocurrency market and the profit inherent in it. Everyone believed that the era of HYIP had passed and it was time to rush into the crypt, so as not to be left without the last buck in your pocket! And finally, the mix of the crypt and the Ponzi-HYIP scheme on smart contracts really appeared :) A new and interesting trend: who knows, maybe this is what will revive the HYIP world?
What are smart contracts?
Smart contracts are provided in the Ethereum network instead of transactions. In fact, the creators of the ether wanted their cryptocurrency to be not only a unit of account, but also something more that allows people to establish any automatic operations. For example, if we talk about real-life applications, this could be the purchase of an apartment, the payment of fines / fees, the receipt of any documents. Smart contracts allow you to prescribe any executable code inside you. This is what clever HYIP admins took advantage of.
How do HYIPs work on smart contacts?
HYIPs on smart contracts work without a personal account. Their site represents only a set of beautiful (or not so) html-pages with various information. The rest of the functionality is incorporated in the Ethereum smart contract. Therefore, it will have to be removed only by broadcasting.
Initially, such projects are inherently “honest”. That is, the admin refuses access to the entire cash register of the project: he cannot, at some fine moment, take and collect all the money. The profit of the creator of such a HYIP is formed only from% of the cash register. The users themselves can watch the flow of funds on the project’s wallet. This can be checked via Etherscan (https://etherscan.io/). Wow, isn't it? Before you is a real "holy" model of a financial pyramid! But such a situation is possible only if the project administrator has renounced possession of the smart contract. It is also important that such a project has a third-party audit! All such information, the project owners are required to place on their website. If there is no refusal to own or audit, then when investing additional risks arise not to return their contribution.
Pros and cons of HYIPs on smart contracts?
Despite the beautiful principle of operation, such a system has a fairly large number of ambiguous nuances that can be both a plus and a minus depending on the situation.
- Investments are made only by means of ether. For an ordinary investor, this can be a plus if the rate of a given crypt rises - then it receives not only dividends on the deposit, but also profit from the growth rate. Minus, if the course of the ether began to fall heavily, then you can suffer some fiat losses. But remember, a profit or a minus from the growth of cryptocurrency occurs only when you have fixed it! (that is, they brought in fiat money). And with active investing you should not constantly look at the course of the ether, since The cryptocurrency market has a fairly large volatility: therefore, consider your profit from investing in such projects only in the number of esters.
- Anyone can see the real balance of the project wallet. As a result, users can make a conclusion about the stability of the inflow and the growth of the cash register: if the inflow covers the amount of payments, then it is possible to think in more detail about the deposit. At the same time, this gives grounds for false panic: one of the inexperienced beginners may take a small and temporary minus at the box office as the beginning of a catastrophe and suffer panic in all chats. Therefore, we analyze correctly and use this cool feature of HYIPs on smart contracts to the full!
- The complexity of perception from the ordinary investor: the project does not have a personal account, which means you need to learn new technical tools to work with it.
What are the features of investing in HYIPs on smart contracts?
In HYIPs on smart contracts do not need to be registered. You just need to immediately send your deposit to the project wallet, after which the smart contract automatically “remembers” you and will make payments to the address from which you contributed. You should not make a deposit from a cryptocurrency exchange, otherwise you get the opportunity not to return your money back. Therefore it is worth using ethereum-wallets: MyEtherWallet, Jaxx or MetaMask.
HYIPs on smart contracts use two types of payments: instant and automatic. With automatic, the system itself sends charges without your participation. With the instant method of processing applications, it is enough to send 0 ethers to the project wallet and your payment will be instantly delivered.
There are also certain features with referral program. Some projects do not use it at all. Detailed information you need to look at the site. If the referral program is used, then when transferring funds to the project wallet, you need to specify the inviter's wallet in the additional field. After that you can get your refback.
Instead of a conclusion
As you can see, the structure of HYIPs on smart contracts is new and has several features. In the article we outlined the main methods for choosing such projects. To simplify the task, answer the following questions for yourself:
- Is there a referral program here? Will I be able to get after refback from my upline?
- Did the administration refuse to own the contract?
- Is there a security code audit?
- What percentage of replenishment does the administration charge for creating and promoting the project?
- What is the dynamics of deposits on the project wallet?
What are the HYIPs on smart contracts: a new step in the development of financial pyramids on the Internet, or the fleeting “movement” of investors, will be seen later. In the meantime, it is worthwhile to look closely at this phenomenon! :)
Join the discussion in the comments: give your opinion and ask questions!