The Birthday Scammers

by Tony Clifton

Today Paxmix went South. Well, it could come back, but the change is less than 0.1%. These who followed our recommendation in issue 6, should have made some profits, but this is not what i want to discuss. In case it has missed your attention, Paxmix celebrated their birthday few days ago.

This is not an exception - there is a whole category of ponzis which close arround their b-days. Looks like the scammers love holidays - many of them close arround Xmass, others - arroun New Year, Easter etc. In fact the case is not about what they love, but how the mass mind work and what are the scammer's goal.

I won't list you all the "birthday" scammers, but want to remind you only for global-financial-trust who closed few days after celebrating 1 year.

Why it happens?
What is the magic arround 1-year thing? There are several theories but here is what explains the most cases: first, lets separate the ponzis in 2 types depending on the admin's goals:

- scams which wait for the big buck
If the rumors about 500k invested in Paxmix arround the celebration is true, this is what kind of pyramid Paxmix is. These admins are running the programs with the intent to go away with some big bugs. There are many ways to try collecting big spends at once (remember the bonuses offerred by HYIPool before its end, the VIP plan of Weekly Interest, "GN5" by Golden Nestegg etc, etc), but one of the best working strategies is to gain people's trust. Seems like for many investors "1 year" is some magic phrase and they think if the program survived that, it is geniune. This what could have brought so much people's money to Paxmix. And seeing all that cash the admin knew that they must start paying out and will never be able to get such huge spends again. So they ran away. Apparently Paxmix was a ponzi regardless of what we wanted to believe.

- scams "for living"
These scams also live 1-2 years so Paxmix could be one of them. Such ponzis are created by their admins with the aim to create small but consistent profit so they can live of it. They just get part of the invested funds for themselves and pay out with the other. Should they reach a moment when the money aren't enough to get profit for themself, the problems start and the program close soon. I suspect that FastMarket can be such kind of ponzi (but it has a good chance to celebrate 2nd b-day, so i believe you can still earn cash in it), since they support low payout and work smooth.

It is very hard to recognize the "birthday scams" that's why you'd better be extra careful on program celebrations instead of hurrying to spend your money. A very important red light is when the program emphasizes on their birthday beccause they are most probably trying to get the large spends.


Published at Oct, 11 '05 ; read 507 times;

If you liked this article subscribe to the Free HYWD Newsletter

   

No comments so far. Be the first to comment!

Now get syndicated content on all recently published or updated articles!

Or add to your favourite RSS readers: