Hi, Dear readers of the financial magazine "RichPro.ru"! Today we will tell, what is a financial pyramid, what are the features of financial pyramids and how to recognize them at an early stage.
so, from this article you will learn:
- What is a financial pyramid and how it works;
- History of the pyramids;
- What are the types of financial pyramids and how to recognize them at an early stage;
- What is the difference between network marketing and the financial pyramid;
- and many other useful information.
The article will be useful to everyone, who is interested in financial matters, as well as those wishing not to lose money at such events. Don't waste time! Read the article now.
About financial pyramids, what it is, what species they are, goals of creating pyramids - read on
1. What is a financial pyramid - the definition and meaning of the term
Financial pyramid (Economically) — it scheme, specially created for profit by attracting more and more new participants.
In other words, joining the pyramid provide income to those, who came to her earlier.
There are other schemes, when all means are concentrated in only one person, who is the organizer of the pyramid.
In Russia, when mentioning the financial pyramid, the majority immediately comes to mind MMM, which was actively promoted in the early nineties. When the pyramid fell, thousands of people were injured.
Most pyramids are covered in their activities by a mask investment, and charitable funds, companies, produce fictitious goods, give depositors a promise to take money from nowhere.
There are those another type of financial pyramid. It appears in some cases as a result of running a regular business. It happens, if the organizer of the activity incorrectly calculated the profitability. As a result, instead of profit there are losses, to settle with creditors and investors nothing.
To keep the business afloat, and those, to whom its owner owes money, did not sue, new loans are taken. Proceeds will be used to repay previous commitments. It is not entirely true to consider such a scheme as fraud, rather, it refers to illegal entrepreneurship.
quite often fraudsters cover the pyramid just doing business. There may be a small payment, but it is always less than the main contributions to the pyramid itself. Most imaginary income consists of investor contributions.
2. History of financial pyramids
The term "Financial Pyramids" fraudulent schemes began to be called in England in the seventies. However, they appeared much earlier. The first pyramid (Organization of India Joint Stock Company) was created by John Law. to raise money for the development of the Mississippi.
For the first time the structure, similar to modern single-level pyramids appeared in 1919 year. The creator of the project was an American Charles Ponzi. Such schemes are called by his surnames today.
The fraud was on the coupons, which, as it turned out, were not subject to sale for cash. The only thing, what could be done with them - to exchange. But, the first participants in the pyramid received income, naturally, due to the influx of new investors.
In Russia, the peak of pyramid activity occurred during the transition to a market economy. It was then that a huge scandal broke out with the MMM project.
Today, financial pyramids are banned in many countries. In the United Arab Emirates, as well as in China for creating a financial pyramid can be awarded the death penalty. In Russia, such actions are subject to criminal liability.
The main reasons for creating financial pyramids
3. 7 causes of financial pyramids
Financial pyramids begin to form at that moment, when the relevant political and economic situation in society develops.
The most important prerequisites for the emergence of such fraudulent schemes are:
- low inflation;
- the principles of a market economy must operate in the state;
- there must be free circulation of securities in the country;
- legislative regulation of the creation and operation of such structures is poorly developed, there are no corresponding norms;
- rising incomes of the majority of the population;
- citizens have free funds, which they are willing to invest in various financial structures;
- low level of financial literacy of the population, as well as poor information support.
All these prerequisites push enterprising people to create financial pyramids, who violate the laws of the country.
4. Objectives of creating financial pyramids
Financial pyramids are created to enrich their organizers and this is due to the influx of new investors. Sometimes they make a profit, who joined this scheme in the early stages of the pyramid, and then withdrew his money in time.
Contributions (deposits) in the financial pyramid never invest anywhere. They are directed to the payment of rewards to the upper levels of participants.
In other words, those, who has already entered the pyramid, get their money by attracting more and more participants. So, it is advantageous for all investors to involve as many people as possible in the scheme. Only in this case, they will get some profit.
That is why the pyramids are gaining popularity so quickly and have a high degree of spread.
Sometimes a product is created to cover the financial pyramid. However, this does not change the essence of the scheme. The product is not profitable, it is formed solely by the contributions of new members of the pyramid.
Though, incoming funds are distributed under different schemes, the basic principle of any pyramid is to constantly attract as many new participants as possible.
Sooner or later the influx of new investors is exhausted and at this point to make payments to the participants of the pyramid becomes useless. The result is always one - the pyramid collapses.
Entering the pyramid, participants must be aware, that will get their money back (not to mention any income) Not everyone. Those, who will enter the pyramid last, will probably lose all invested funds.
Usually the owners of a fraudulent scheme, when they see, that the influx of depositors has decreased, stop payments. After that, they calmly collect the remnants of the accumulated funds and disappear in an unknown direction.
That is why you should not count, that will be able to get rich, making questionable investments. It is difficult to determine, at what stage is the financial pyramid, and when it falls. That is, the risk of losing the money invested in the pyramid is always very high.
It is best to consider reliable and profitable investments. Example, investing in a business can bring in much more income, than unknown and high-risk financial instruments.
How the financial pyramid works - the main stages of creation
5. The principle of the financial pyramid - 3 stage of the classical pyramid
The idea of financial pyramids would be incomplete, if not studied, how they work. The easiest way to understand this scheme, considering the stages of the pyramid's existence using numerical values.
Stage №1. Creating a pyramid (first level)
The organizer convinces to join the pyramid 4 (four) participants. At the same time he takes from them 100 $ as an entrance fee and promises to pay for each new participant 25 $.
The income of the organizer at the first stage amounted to 100 X 4 = 400 $
Costs are equal 0 $
Stage №2. Creating the second level of the pyramid
Participants of the first level are involved in the pyramid 4 (four) depositor on the same terms, on which they came themselves. For each involved investor, the first level participants receive 25 $.
Income in the second stage: 4 X 4 X 100 = 1 600 $
Total income since creation: 400 +1 600 = 2 000 $
Costs: 4 X 4 X 25 = 400 $
Net profit of the organizer: 2 000 — 400 = 1 600 $
Stage №3. Creating a third level
All participants of the third level enter the pyramid on 4 new contributors (the conditions are the same).
Income in the third stage: 16 X 4 X 100 = 6 400 $
Total income since creation 6 400 +2 000 = 8 400 $
Costs: 16 X 4 X 25 = 2 000 $
Net profit of the organizer 8 400 — 2 000 = 6 400 $
This fundraising scheme can take a very long time. It is beneficial for the organizers, so that as many participants as possible enter the pyramid, after all, their profit depends on it.
However, the faster the scheme in the pyramid develops, the faster it is to collapse. It has to do with that, that the number of potential investors is always normal.
When the influx of new participants, so, and funds are exhausted, the organizers of the pyramid disappear with the money collected so far.
Payments to depositors are terminated and eventually those, who entered the pyramid at the last stage, remain with nothing.
However, in modern society, such schemes of the classical financial pyramid are rare. With the development of the Internet, more and more new forms of deception are emerging. So, so as not to fall victim to fraud, it is worth carefully studying the signs of financial pyramids.
The main features of the financial pyramid
6. 20 signs of how to define a financial pyramid
Often beginners in the field of investment are convinced, that they invest in projects, which differ in prospects for development, stability and high incomes. However, a detailed analysis of investments reveals, that they are investing their money in a regular financial pyramid.
As a result, most novice investors they lose their own funds very quickly. In order not to become a victim and not get into such a situation, it is important to learn to recognize fraudulent schemes. It is impossible to do, not knowing the basic features of financial pyramids.
Today, due to the global development of the Internet, financial pyramids are widespread. Online every day are created and are destroyed a huge number of pyramids. At the same time, there are so-called offline pyramids, not connected to the Internet.
Part of the pyramids is created by restarting previously existing projects. In this case, the circuit burns out, accounts are reset, and the process begins again. Frequent situations, when the owners of one, already collapsed pyramids, create a new one, only by changing its name.
Many creators of modern pyramids came from the famous scheme MMM-2011. There are a huge number of names in these projects. But it's worth remembering, as in hype, and in matrices, and many other schemes have signs of financial pyramids.
Daily in the mail, social networks, skype people find a huge number of offers to join various highly profitable projects. You can also find calls to participate in the pyramids on job sites, as well as projects, devoted to earning money online.
We wrote about earning money on the Internet without investments and deception in our last article, where only reliable and proven ways to earn money online were considered.
It cannot be said, that everyone who joined the pyramid will inevitably lose their capital, since those, who enters the scheme earlier than others, manages to earn decent money.
However do not forget, that the percentage of their inclusion is very small, after all, the share of profits in the total number of participants is very small. So, to identify in advance whether the project is a financial pyramid, it is important to know their distinctive features. These will be discussed below.
Sign 1. High level of promised income
Experienced investors know, that investment under 25-35% annuals can already be called quite risky. If such profitability is promised in a month, on the face of obvious signs of the pyramid.
Sign 2. The condition for receiving income is to attract new participants
This feature clearly indicates that, that the project is a financial pyramid. Sometimes companies hide behind this, acting as financial pyramids.
However, we should not forget about the essence of such schemes: new members are needed for that, that their contributions go to the income of old participants and provide profits to the organizers.
Sign 3. The income payment scheme is vague or too far-fetched
In other words, the investor is promised huge returns, which can be obtained, fulfilling certain conditions. In this case, all the necessary conditions include a huge number of points.
Of course, that in such cases there will be a reason not to pay, referring to that, that one of the clauses of the agreement has not been fulfilled.
Sign 4. Guarantee of income
None of the investment methods can guarantee the investor income. Therefore, if advertising guarantees income, and also very high, this may indicate the presence of signs of the pyramid in the company's actions.
Sign 5. Revenues to investors are paid thanks to new members of the company
This feature follows from the scheme of the pyramid. Since there is no real profit, the only way to pay the income is to attract new investors.
Sign 6. Forced to make periodic contributions or buy company goods
If to participate in investing companies need to regularly deposit money or buy unnecessary goods at high prices, hence the organization does not make a profit from its activities. It is kept afloat only due to the infusion of scheme participants.
Sign 7. The product is similar to fictional or sold at a very high price
This feature allows you to understand, is a company financial pyramid or simply operates as part of network marketing. In the latter case, the real product is distributed at real prices.
Details about the principle of network marketing and what it is, we wrote in a separate article.
The pyramid sells something like a Cuban berry, which after collection is sent to Japan, where it is squeezed, which is insisted on in Italy. The result is a tool, which allows you to lose weight quickly and worth it 399 $ for 100 grams.
In practice, at best, sell the infusion of ordinary field herbs. Such sales clearly indicate the existence of fraudulent schemes.
Sign 8. Continuous motivation
The creators of the pyramids are constantly convincing their investors, that work is like slavery, every adequate person seeks to receive passive income, to financial independence. the founders claim, that their company allows them to get rid of employers, it is enough to work in a friendly team and for its benefit. What is passive income really and how can it be created, you can read in our article.
Such motivation puts strong psychological pressure on everyone, who has at least some financial difficulties. Seeing the calls as an ideal way to earn money, people bring their money to the company.
In practice, make money on the pyramids fails almost no one. Only creators can get money, as well as their immediate surroundings, which is usually located at the upper levels of the circuit. And they will earn only in that case, if they are not prosecuted.
Sign 9. Advertising, which does not contain specific information
The advertisement contains a call to join the unique, super profitable, innovative project. There is no clear indication of that, in which exactly.
Sign 10. Calls to hurry to invest
Such slogans hint at that, that only the first depositors will be able to earn real money.
Before, how to invest your money you need to carefully understand all the details of investing and in no case rush to invest. We also recommend reading our article - "Where to invest money to get a monthly income", where the main and tested ways of investing are considered.
Sign 11. Calls to act now
This feature is very similar to the previous one. Slogans to join the project today, during the week and the like are aimed at psychological pressure. They put pressure on the subconscious, hinting, that the attractive offer will end soon. It is better to stay away from such slogans.
Sign 12. The information is contained only in the video presentation
Often different video appeals, presentations, records of meetings and seminars, showing a huge number of participants and the distribution of money, is a clear sign of the pyramids. Вперше такими способами залучення вкладників в нашій країні користувався Сергій Мавроді.
Remember, that real investment companies use a much wider arsenal of ways to tell about themselves and attract customers.
Sign 13. Anonymity
Information about the creators of the project is not published anywhere, they are simply missing, learn, who created and manages the project is almost impossible.
Sometimes financial pyramids refer to that, that such information is a trade secret.
Sign 14. To find out details about the project, you need to attend a seminar or meeting
Potential investors are attracted to various events. Sometimes this method of attraction is also used by companies, engaged in network marketing, as well as financial brokers.
However, in combination with other features from the list, such actions indicate the construction of the pyramid. Moreover, in the case of the pyramids, the participants of the meeting are actively persuaded to invest, using various psychological techniques.
Sign 15. Reference in the contract to the fact that the company has no obligation to return the money invested in it
The creators of the pyramids are usually quite well versed in law. So, insuring against various lawsuits, they are in the contract exclude paragraphs about the company's obligations to investors, as well as money back guarantees.
Often, when investing in pyramids, investments are made as donations or voluntary contributions. At the same time investors are inspired, that it is impossible to issue investments differently and various legal reasons are given. However, such tricks should alert investors, and how they explicitly indicate the financing of the pyramid.
Sign 16. The company is registered abroad, usually offshore
You can often find an offer to invest in profitable foreign companies. Registration at a distance from Russia may indicate a pyramid, since bringing the company to justice (enterprise) it will be almost impossible.
Sign 17. The company is completely absent
In this case, the legal entity is not registered at all. A number of ordinary private (physical) persons exchange funds.
Truth, in such schemes, the project owners do not try to hide, who organized the usual financial pyramid.
Sign 18. There are no licenses for financial activities
In Russia, only those companies can raise funds from individuals, who have received a license for such activities. Its absence indicates the illegality of the activity.
Sign 19. The investor is not warned about the risks
Any option of investing funds is accompanied by risks. Companies should warn depositors about this. So, if a risk warning Missing or the investor is promised a risk-free investment, it is possible to tell almost with confidence, that it is a financial pyramid.
Sign 20. Prohibition of disclosure of secrets
If the investor is asked to sign an agreement on non-disclosure of trade secrets about the contribution made and the terms of the investment, probably, there is a financial pyramid. Honest companies are unlikely to hide such information.
There are many signs of financial pyramids, but not necessarily, that they were present all at once. But it doesn't have to be a sign, that the company is a financial pyramid. The main thing, that the manifestation of such signs should alert investors.
It is also important to know, that most modern pyramids are disguised as such organizations:
- investment firms;
- financial companies;
- organizations, whose activities are related to network marketing;
- brokers.
It is important for the investor to learn to determine, whether the project is a financial pyramid.
7. Types of financial pyramids (single-level, multilevel, matrix)
All fraud schemes, based on the principles of the pyramid, according to their inherent structure of construction is possible divide into 3 (three) groups. Some creators claim, who managed to create a qualitatively new scheme. However, a careful analysis of any of them can be attributed to one of the following groups.
1-The second type of financial pyramids is one-tier
7.1. One-level pyramids or Ponzi scheme
This type of pyramid is considered the simplest and therefore the most common. The name Ponzi scheme comes from the name of an Italian swindler, who for the first time managed to deceive the population in this way.
The organizer of the pyramid in this case attracts participants, guaranteeing quick profits. It is enough to make a contribution, It is not necessary to attract new participants.
The owner of the scheme pays the first depositors the income from their own funds. When the glory of the pyramid begins to grow, the funds of new investors go to reward the old ones. As a result, the glory of the project brings real income inevitably growing. so, the number of participants increases. Many investors make additional contributions.
Such pyramids often position themselves as charitable or investment funds, as well as mutual assistance projects. Naturally, it's just a cover, in reality no activity is conducted.
Inevitably, in the process of developing the financial pyramid, the moment comes, when the commitment to a huge number of participants is constantly growing, and entry into the scheme of new investors is reduced. At this time, the project owner terminates the activity and disappears with the collected money.
The lifespan of such a pyramid is determined by that, how popular it is. Usually it is from 4 to 24 months. After the collapse of the pyramid in the profits remain not more 20% all depositors.
There are several examples of pyramids, built according to the Ponzi scheme:
- MMM, created by Sergei Mavrodi;
- Tannenbaum's project to fund the development of AIDS drugs;
- iPhone pyramid;
- and other.
7.2. Multilevel financial pyramids
2-The second type of financial pyramids is multilevel
The scheme of construction of such a pyramid is similar to the structure of companies, engaged in network marketing. Such pyramids are usually covered by trade or highly profitable investment.
However, even in that case, when the goods are, it is of low quality and not worth the price set for it. Such goods are designed to distract investors, where such structures usually promise revenue at the level, exceeding 100% annual and reaches 450-500%.
Each participant in the project must make an entry fee. The funds thus obtained are distributed among the participants, located at higher levels - those, who invited a newcomer and several are standing over him.
Next, the new participant must involve several new ones in the structure. Most often you need to cite from 2 (two) to 5 (five) depositors. To do this, he is told directly or veiledly, that the project needs new participants, and only in the case of their involvement will the investor begin to receive income, gradually recouping the invested funds and making a profit.
It turns out, which is the same as in Ponzi scheme, money is redistributed among depositors. The number of levels is gradually increasing, while the number of participants increases exponentially.
Approximately on 10-15 equal number of depositors can be equated to the population of the whole state.
Sooner or later the moment will come, when there will be no one to involve. It is at this time that the organizer closes the project and disappears with all the money raised. As a result close 90% depositors lose all their investments.
Multilevel financial pyramids do not last long. Most often, their collapse does not come later, than six months after creation. To extend the life of the pyramid, the organizers change its name, location or go online.
The most famous structures of this type are:
- Talk Fusion;
- MMM 2011 and 2012;
- Binary.
7.3. Matrix-type financial pyramids
Such pyramids are complex multilevel structures. There is often a real product, example, precious metals, slimming teas or fictional paid programs to teach novice businessmen.
3-The second type of financial pyramids are matrix projects
Though, that such companies belong to the pyramids, many sincerely believe, that this is a new type of investment.
The scheme of work of such companies is approximately as follows:
- The participant pays the first installment when joining the project. After that he waits, when the whole level is filled.
- Once the lower level is filled, the matrix will be divided into two equal ones, and our participant will rise one level up.
- Now it is necessary to attract more participants, to fill the lower level.
- This is how the further distribution of matrices gradually takes place, and the participant will gradually rise higher and higher.
- As soon as the participant reaches the first level in his matrix, he will be paid a reward. It can be money or goods, for example a gold bar. If desired, the product can be sold to the company itself.
Essentially, it turns out, that during the creation of the matrix pyramid the lower participants are reset to buy a gift to the participant of the first level. Each lower member gradually moves up. To speed up this process, it can help attract new investors.
important to understand, that in the conditions of pyramids of matrix type it is rather vaguely specified, how to get a proper reward. It is most often indicated here, that for this purpose it is necessary to wait for filling of a matrix. It is unclear when this will happen and whether it will happen at all.
But, matrix pyramids last longer than others. But do not expect: they are bound to fail.
At the end of this section you can compare 3 (three) type of pyramids. For convenience, the result of the comparison is given in the table.
| A sign for comparison | one-level pyramid | multilevel pyramid | matrix pyramid |
| structure | The owner of the project is in the center. Deposits come to him until a certain point, it is he who distributes the rewards. | Several participants. The organizer of the pyramid interacts only with the first level, but oversees the activities of the entire pyramid. | The central link is several active participants. They are interested in newcomers, while they bring new investors. |
| Source of profit | Investment, as well as charitable projects. | Exclusive entrance fees for new participants. The structure of the pyramid can be masked by sales of various products. | Only contributions are made by depositors. To let the dust in your eyes, complicated schemes of sale of any goods are used. |
| Validity | It depends solely on the ability to persuade, which are inherent in the organizer. | The collapse comes very quickly, as the pyramid grows at an accelerated pace. | It can be quite long, because the exact timing of the matrices is unknown. |
As can be seen from the table, the pyramids fall apart in any case. Therefore, we recommend a more careful approach to investing your money and choose the most reliable of them. Example, it is better to choose real estate investments, than investing in hype or other dubious projects.
8. What is the difference between a financial pyramid and a network marketing company
Many believe, that network marketing and financial pyramids - the same phenomenon. It has to do with that, that in superficial comparison these two concepts have certain common features. However, it is important for investors to learn to distinguish between them.
Network marketing is a legitimate option promotion of goods from producers to consumers, this excludes several intermediaries. In such structures, the income of each participant is compiled, based on the quantity of goods, which his wards will be able to sell.
It turns out, that if the participants in the scheme do not buy or sell anything, and just register, they do not receive income. Thus registration in the companies of network marketing is absolutely free or the entrance fee is very small - to 500 (five hundred) rubles.
Problems often begin in those situations, when the pyramid tries to disguise itself as network marketing. To decide, what kind of company is this after all, it is important to look for signs of financial pyramids, which we described above in the article.
Types of financial pyramids on the Internet - magic wallets and hype
9. Financial pyramids on the Internet (online) - highs and wallets
The development of the Internet makes it much easier to create and develop financial pyramids. This allows you to expand the geographical reach of potential investors. At the same time significantly decreased advertising costs.
The development of the structure of the pyramids is facilitated by the complexity of tracking the movement of funds using electronic payment systems.
Sites are rarely registered to real people, what information about the owner is hidden. When creating pyramids on the Internet, it is difficult to find a scammer when they collapse, to prosecute.
The largest financial pyramid in the network — Stock Generation. It is organized by the famous Sergei Mavrodi. It was a kind of gambling. In accordance with the terms of this game, shares of non-existent virtual companies were traded.
Conditions were similar to stock trading: the value of shares moved upwards, and down. The pyramid existed 2 (two) years. After, how she fell, a huge number of people were affected: according to various data from 300 (three hundred) thousands to several million people.
Another very big project from Mavrodi — pyramid MMM-2011 and 2012. In order to create them was invented "Mavro", which is a virtual currency.
In the first project, it was bought and sold through participants, management levels.
In the second - calculations were made between the participants of the pyramid directly, the essence of the project was reduced to the mutual aid fund. Naturally, the influx of participants and cash contributions came to naught. Money from the pyramids began to steal, the pyramids began to close.
Mavrodi tried several times to restart the project. However, trust in the creator has decreased significantly, therefore, the size of the pyramids became much smaller.
Internet pyramids are very diverse and the most popular among them 2 (two) groups: hype, and magic wallets. Let's try to understand the features of each of these schemes.
9.1. Hype (type of financial pyramid)
Hype or otherwise hype projects are investment projects, which promise high profitability. Hypes are built on the principle of a financial pyramid.
Such projects are covered by investments in securities, mutual funds, sometimes claimed, engaged trust management. In some cases, hype organizers do not report anything at all, what activities they carry out.
Some Internet users think so, that you can make good money by investing in highs, the main thing is to make the right investment. Moreover, there are publications on the Internet, in which the participants of such projects describe in detail the right strategies for investing in hype. They tell, how to invest, so, to leave the project in time (to the collapse of the hype) and make a substantial profit.
But do not forget, that such Internet projects are organized on the principle of ordinary pyramids. They inevitably go through all stages of development, inherent in the pyramids. So sooner or later, the hype is bound to fail.
In the pyramids there is a transfer of funds from one participant to another, so, maybe someone will be able to make money on hype. However, they will do so at the expense of new investors. Moreover, the percentage of lucky people is very low. In any case most of the contributions will settle in the pockets of the organizers of the pyramid.
Hypes are similar to some real companies and financial instruments. Example, There are venture capital funds on the Internet, which are one of the many ways to invest. These companies are engaged in real investment in financial instruments, having a high level of income. As well as hype, such investments on the Internet are high risk.
It turns out, that these two types of companies are very similar and it is important for investors to be able to distinguish them. There are a number of signs, typical of hype projects, but not inherent in venture funds.
Among them are the following:
- investment objects are fictional, or untrue;
- the site is too colorful;
- the essence of the project is blurred, not entirely clear, what it is;
- too intrusive advertising, which claims, that a refund is guaranteed, no investment risk, too aggressively persuading to invest;
- Unable to find organizer data - company name, address, telephone, who manages;
- no information on the availability of licenses, registration certificates, or these documents are false;
- the promised level of income exceeds 1-2% day, however, there are hypes, where this figure is equal to 0,5%, this feature cannot be applied to them;
- vague or too difficult conditions for making a profit.
Electronic wallets are usually used to transfer money to the hype, in which it is not necessary to identify the person, example, Qiwi, Perfect Money, Payeer. As a result, it becomes almost impossible to calculate the real data of the counterparty.
Everything, which implies at least a minimum identification for the hype is unacceptable. Almost all such projects for this reason refuse to use the WebMoney payment system.
Depending on the level of income, there are three categories of hype:
9.1.1. low-income
The existence of such financial pyramids is from one and a half to three years. At the same time, the promised income is at the level, not exceeding 15% per month. Many hypes of this type promise to pay for 0,5% in a day.
Traditionally, pyramids of this type are covered by companies, which perform the functions of trust management of various assets. At the same time, it is often difficult to distinguish low-income hypes from legal schemes.
9.1.2. average income
The lifespan of financial pyramids, created in the form of medium-income hype, is from 6 (six) to 12 (twelve) months. Profitability is much higher here, than in the previous category and is about 3% in a day. In a month at investment in such hype profitability at level is promised 15-60%.
Such financial pyramids are characterized by rapid growth in popularity. This means, that its peak will be reached very quickly, that is, the collapse of the pyramid will not have to wait.
9.1.3. highly profitable
Such financial pyramids are developing rapidly. about 2-5 weeks they go through the whole life cycle. At the same time, the promised profitability exceeds 3% per day or more 60% per month.
Such hypes close quickly and completely unexpectedly. Therefore, the purpose of the project is, to attract a large number of investors as soon as possible and this is done with the help of extremely aggressive and obsessive ??advertising.
Slogans guarantee huge income for depositors if they register "here and now".
Not only their organizers are important for the creation and successful functioning of hypes, but also refovody. Under this concept, individuals are united, engaged in the promotion of the pyramid. They distribute advertisements on the Internet about the creation of the project.
in addition, the most important task of refovodov there is agitation of network users to join the hype, that is, attracting as many new investors as possible.
It is the competent actions of refovodov determine the further success of the project. They act as agents of the financial pyramid. Therefore, the cooperation of the organizers of the pyramid and refovodov carried out by concluding an agency agreement.
Interaction is carried out through various affiliate programs, that is, refovods earn money as a percentage of the contributions of the investors they attract. This easily explains, why refovodi so actively promote hype.
They post colorful and detailed stories (most often, Of course, fictional), About that, how to break the jackpot, joining the project. Refovody do this in various blogs, social networks, as well as on forums.
Hype organizers often offer their participants to look for new investors on their own, using a referral program. As a result, the speed of promotion of hype on the Internet is increasing, providing a significant inflow of cash.
By analogy with the pyramid during the growing popularity of the hype project, its participants are paid the promised rewards. Such effective operation has been going on for some time. At some point, the flow of income begins to decline, the inflow of money becomes less than the amount of payments. This becomes a signal to the organizers, that it's time to collapse the project. Hype closes, and the sums of money collected so far remain with its creators.
So, you can earn on hype, but the creators of the project remain in profit, those, who actively promotes it, as well as depositors, who managed to withdraw their money in time.
However, the number of those, who won scanty little compared to the number of participants, which as a result lose their money.
9.2. Magic wallets are a special kind of financial pyramids
Recently, an interesting way of earning money is widespread in the network, which is called "magic wallets".
The essence of the method of earning is quite simple: should send a small amount of money (most often from 10 to 70 rubles) for seven wallets. Electronic money systems are commonly used for this purpose Yandex. and WebMoney. Then remove the top wallet number, enter your own instead.
It remains to place an advertising message on as many forums as possible, bulletin boards. Often such messages can be found on websites, where people are looking for work.
Many believe, if all actions are done correctly, enough close 100 (What) or 200 (Two hundred) messages, that huge sums began to come to the wallet. The reason is simple: those who joined the project will transfer money to the wallet, after which they will also start actively promoting messages.
In reality it turns out, that the system of magic wallets is an ordinary financial pyramid. However, it is not subject to any control.
It is almost impossible to earn in this way. Firstly, there is no guarantee, what those, who decides to continue the chain of messages, will send money to previous wallets. Secondly, they can delete more than one wallet number, as stated in the instructions, and more, entering their own instead.
But even if we assume, that each subsequent participant will do everything according to the instructions, the pyramid will grow at a tremendous pace. Even the population of the entire planet Earth will be insufficient, to cover 4-5 its levels.
In theory, Of course, the first participant across 2-3 equal can earn about a million rubles and this provided, that each new participant will be able to attract 5 man. However, in practice this is the situation absolutely unreal due to the same lack of participants.
So, get rich, using magic wallets, it just won't work. Moreover, electronic payment systems make every effort to combat such schemes. They may well block your wallets, specified in the advertising (spam) messages.
Services, engaged in electronic payment systems security and financial monitoring, closely monitor the appearance of such messages on the network.
A few days later, the pyramids cease to exist.
Financial pyramids - a list of new and old
10. List of old and new financial pyramids in Russia - from MMM Mavrodi to the latest
In Russia, the first financial pyramids appeared after the collapse of the Soviet Union. In the first years of the transition to a market economy, a large part of the country's population suffered from them.
Many consider it the largest and most infamous pyramid AT «MMM». The date of establishment of the company is considered 1989 year. However, at that time she was operating quite legally.
IN 1994 JSC MMM began to operate under the scheme of the financial pyramid. Project organizer - Sergey Mavrodi engaged in active production 2 (two) types of papers:
- shares were issued almost 27 millions;
- more tickets were also issued 72 millions.
The company actively advertised in the media (pyramids). All, who at that time was of conscious age, remember the advertisement for Lenya Golubkova. It, as well as promises to investors of profitability in the amount of from 500 (five hundred) to 1000 (thousands)% led to a pyramid of a huge number of investors. It is estimated that the project came close 10-15 millions Russian citizens.
No documents were issued to depositors at all, there was no free sale of MMM securities. In fact, only the company itself could buy them. The value of securities was set directly by the organizer.
Unprecedented excitement arose around the MMM pyramid, which led to a sharp rise in the company's securities price. As a result, in a short time the action, whose face value was 1000 (A thousand) rubles, began to cost 125 000 rubles apiece. Naturally, the real price for them was much lower.
Information about this began to spread among investors, that the organizer of MMM Mavrodi has problems with the law. He was accused of conducting illegal business activities, as well as problems with tax authorities.
Panic was growing among the population. As a result, the value of securities began to fall sharply. As a result, they became about a hundred times cheaper. In fact, the securities of JSC "MMM" have become useless, worthless "wrappers".
The result was the storming of MMM's office, where Mavrodi was arrested. The organizer of the pyramid was awarded 4,5 years in prison. Loss, which suffered the population of the country from the actions of the entrepreneur, has about 3 (three) billion rubles.
At the same time Mavrodi managed to shift the blame for the collapse of the pyramid to the state. He claimed, what a successful company, which promised enrichment to many citizens, was purposefully destroyed.
Later, Sergei Mavrodi created other financial pyramids:
- Stock Generation, operating on the Internet;
- MMM-2011;
- МММ Global Republic of Bitcoin.
Due to the resounding success of the MMM financial pyramid in Russia in the 1990s (nineties) and the 2000s (two thousand) years, other similar projects were created.
They became the most popular among them:
- The lord;
- Ruby (NUMBER);
- Russian house Selenga;
- Hopper-invest;
- Tibet.
The number of victims of the financial pyramids of Russia was in the millions. In each of the schemes, citizens lost from several million to several trillion rubles.
Almost all the organizers of the financial pyramids were imprisoned, some managed to escape in an unknown direction.
Despite the deplorable consequences of the pyramids in that period, they continued to exist.
The reason is quite simple: most people want to get rich, doing nothing for it. Since almost all people are quite greedy and trusting, ready to invest in any project, promising unprecedented profits.
A huge role in the existence of financial pyramids, played and the development of the Internet. With the help of the network it is much easier to run advertising campaigns, as well as participate in various projects. For investors, the pyramid can be compared to a casino: it is almost impossible to guess, whether he will win or lose money.
List of new financial pyramids, which are popular:
- MMM 2012 and 2016 year;
- SuperPiggy bank;
- Recyclis;
- Elevrus;
- Credex and others.
Legislation has been revised due to the huge number of victims of financial pyramids in Russia.
To date, for the organization and dissemination of such schemes introduced criminal and administrative responsibility.
11. How to be, if money has already been invested in the financial pyramid
It happens, that people first invest money and only then understand, that the project they invested is an ordinary financial pyramid. What to do in this case?
Experts recommend starting to calm down, because in this case it is difficult for a person to assess the situation and make the right decisions. Next, a thorough analysis of the situation should be conducted, existing and take the necessary measures to address it.
Professionals suggest doing the following:
- Contact the company's office, to which the money was transferred. In cases, when this is not possible for any reason, you should contact the person, from which came the invitation to join the project. It is important to understand, that the probability of return on investment is higher in that case, if there are any documents, confirming the transfer of money.
- If fraudsters refuse to return the investment, they should be informed of their intention to apply to the prosecutor's office and the police.
- If the threats do not work, it is necessary to address immediately to law enforcement agencies. It is necessary to remember the maximum of known information: name and address of the company, detailed signs of persons, with whom there was communication, what promises they make, selling other useful data.
Importantly! Write a statement as soon as possible, since there is a high probability, until then, when law enforcement agencies begin to take action on it, fraudsters are already hiding.
12. Conclusion + kind on the topic
Despite the huge number of victims of investing in financial pyramids, people continue to invest in similar schemes. Someone doesn't know, about the possibility of deception, someone expects to withdraw funds before the crash. In any case, it is useful for every investor to know, what signs indicate financial pyramids.
If it turned out so, that funds have already been paid into the fraudulent scheme, you should try to get your money back without too much panic.
We suggest you watch the video - "What is a financial pyramid?»:
In conclusion, we suggest you watch a documentary about MMM:
The team of Richpro.ru magazine wishes you good luck and success in financial matters. If you have any comments or questions on the topic, then ask them in the comments below.