The Cryptocurrency community needs to self regulate HYIPs Here are my ideas for safe passive income
High Yielding Investment Programs have exploded over the last few months making promises of daily returns in exchange for users BTC deposits. Their needs to be a way for the community to protect people from investing and loosing their money from such programs.
I recently became a victim after 5 months when one of these programs just decided to pack up and leave with mine and everyone else's coins. Now I knew the risks involved. I did as much duedil as I could but in the end it is never enough because their are no safeguards to protect users. And no, I am not in favor of centralization. Bitcoin and other cryptocurrencies were designed to free us from centralized money which in some ways it has but it seems old habits die hard.
There are two things that I would like to propose here:
The first is some sort of site seal for these programs that can be visually displayed to users indicating that this is a trusted program. Trusted status should be consensus driven whereby the community or some other smart contract can determine if the program can be trusted.
The criteria to meet should include but not be limited to the following:
- Visible and transparent boards members that can be verified by users
- Active contact details via phone, email support tickets
- Proof of liquidity
- Members of staff or teams that are active in the Crytocurrency space
If the criteria is met then a trust stamp is awarded to the program that is verifiable via the blockchain and made visible to users of the program. This should separate the good from the bad as not every program is out to scam the world out of their BTC.
A trustless application is needed
My second proposal is more technical but I was hoping to get this program built myself (from my daily payouts) as I can see the potential for helping people to grow wealth. The problem with all of these HYIPS good and bad is that they require too much trust from the user. A decentralized currency requires a trustless application where the user is not required to hand over any funds to the program as it sits right on their own laptop. No promises of daily payouts in return for coins as you keep control of your coins at all times. The app would look and feel similar to [Exodus.io(]https://exodus.io) but powered by an automated trading bot that connects to exchanges and does trades and or arbitrage on your behalf all in a decentralized trustless way!
If anyone is interested in helping me to develop this platform or knows of anyone that would like to help do drop me line.
Finally, I would like to list a few programs that have so far been an example of transparency and making good on their promises.
I am not promoting these programs or giving financial advice but if someone is thinking of investing in a HYIP being able to navigate through the disingenuous programs can be difficult especially when promises of daily payouts of up to 5 or even 7 percent seem possible.
As far as being transparent and established these passive income programs come to mind.
Genesis Mining
This company was founded in 2013 so can be considered a verteran amongst the passive income programs outhere. This
company gives an example of transparency and legitimacy.USI Tech
I recently watched a video with one of the founders who explained in a reasonable amount of detail how their program runs by
using a mix of BTC trading, arbitrage and Mining. These are types of program that would benefit from having some sort of
verified status to help new users decide whether to invest.Crypt Trade Capital
This program is similar to USI Tech in that they at least make an effort to be transparent and trustworthy. They also publish
their balance of trades which is helpful.
This is how not to do it
- Gladia Coin
This program is an example of how not to do it. If there were a verification system in place this site would not pass since there
is no transparency and no way to contact support. It is programs like this that disappear over night without a trace so
this is one to avoid in my opinion.
I hope my list helps someone out here and that you have found this article useful. There are some great opportunities to earn passive income but at a very high risk!
