Pages: 1
Show screen shots or not?
(Click here to view the original thread with full colors/images)
Posted by: hyperion
How safe would an anonymous HYIP based on USA be if they show their trades?
Pros: Could be safer. 100% transparency. Peace of mind. No bogus hack excuses since all money is invested.
Cons: You could lose all your principal because of goverment interferance.
What if an HYIP based on USA showed screen shots of their trades and lists their trades it on their site too. Of course, they would only show it after the trading day is over so that other HYIP competitors can't copy the program.
Wouldn't that be cool? Wouldn't you rather invest in a program where you know where 100% of your money is going? Wouldn't people be joining by the thousands investing by the thousands? Now wouldn't that HYIP become high profile that it attracts attention from the goverment (if there are thousands of investors with thousands invested)? I'm sure the goverment would like to freeze the HYIPs account and claim it as their own right?
Now here's the key question:
How safe would a program like this be from the goverment? Suppose a SEC rep or IRS rep or terocrat or any other goverment rep goes to the site, sees the screen shots of the trades of the HYIP. How safe would that HYIP be?
Since to be fully legal would require possibly 10 thousands of dollars for all the licenses, plus the owner of the HYIP won't be anonymous anymore, no more privacy.
What are the chances that the government agent sees the screenshots of the trades, recognizes the platform because he himself has an Ameritrade account (just an example) and makes up a bogus story. Be it insider trading, or tax evasion, or whatever, just so that he can contact Ameritrade, and demands or subpoenas it to find out who made those trades at that certain time of the day selling a certain amount of shares (the screen shots prove it). Now wouldn't that HYIP be doomed if Ameritrade froze their account because the goverment wanted that money?
I need your comments.
Posted by: Anonymous
It sounds like running an illegal trading operation. So I guess I don't understand.
Trading is legal in the US, you can make a lot of money from it, probably more than in most countries owing to the economic policies there, so why all the anonymity and secrecy?
I trade - not in the US - but I never felt like I had to 'hide' from anyone because of that - it's legal here as well, though I don't trade for anyone else. If I did I would be very certain to have all the i's dotted and t's crossed. Why would you hide it, even from your clients?
I would be very wary about giving money to an 'anonymous' trader myself, and most people probably don't know what a trading platform looks like or what to look for in screenshots - which like everything digital on the Net, can be photoshopped - and that'd make people who did know about trading somewhat wary also, I think.
Granted I may have missed your point but I don't understand why you'd want to jeopardise your own business that way.
Rhys
Posted by: hyperion
Here's the thing. In order for the 100% backed by trades HYIP to be 100% legal would require at least 10 to 20 thousand dollars in licensing and legal fees.
Now to remain 100% legal, investors can no longer be anonmyous. Investors would have to reveal their information and sign all kinds of papers, etc. The HYIP would then send the IRS your info and your earnings (if you live in USA), so that the IRS would know how much you would have to pay in taxes. And your earnings wouldn't be as high because the HYIP themselves is paying a lot of fees just to be 100% legal.
In that case, the 100% backed by trades HYIP wouldn't be an HYIP anymore. Isn't HYIP all about privacy, and high returns?
So that's the reason for anonymous. The HYIP is ethical but not 100% legal. The goverment thinks that the HYIP owns all the trading money, but it belongs to the anonymous members of the HYIP. And the time spent trying to keep up with all the new laws to be legal would hurt the HYIP because this time could be spent trading, and making money for the investors.
Posted by: LukAnt
Well, what does prevent you from separating the issues of security and anonimity and the trading between two different firms ?
First, you establish quite legal trading firm T-Corp in US with all the licences required. It pays all the taxes, fees required and so on. The only thing it's doing is the trading.
Second, you establish quite legal off-shore firm ClientSite-Corp somewhere in off-shore. This firm only owns and manages an intrnet site of your HYIP program, no any trading etc.
ClientSite-Corp is the only client of T-Corp, and your Internet-clients are the clients of ClientSite-Corp only.
Therefore you have a structure in which trading is quite legal and your end-clients (internet depositors) are hidden by an interface off-shore firm which is not an agent of US jurisdiction and should not reveal any information about its clients.
What's the problem in doing so ?..
Posted by: hyperion
Great Idea. Something I haven't thought of. Now would the ClientSite-Corp's investors be able to see the screen shots of the T-Corp's trader?
Posted by: LukAnt
As, in fact, these two firms are merely two parts of a one whole body called "Your own HYIP project", you may establish any information exchange rules between them you like - it doesn't matter unless you reveal to anyone any information about your end-clients, depositors of ClientSite-Corp.
In particular, you may openly expose all the trading information of T-Corp to ClientSite-Corp or to everyone in the world by any means - such a disclosure will not hurt your investors.
The only thing you have to care about when disclosing an information on your real trades in the T-Corp is to do it in such a way that would prevent other rival HYIP programs to copy the your original trading algorithms and techniques used. For example, do not provide continuous history of the trades from day to day - make empty "breaks" in it, or something like this. Remember, that your goal is to provide just a confirmation of real trades, not to provide complete information on them. That's all.