Nowadays, investing in cryptocurrencies has become easier than ever before. In just a few clicks, anyone with a decent internet connection can start building their crypto portfolios.
However, this ease of access to crypto also comes at a price – and that is the potential increase of fraudulent parties attempting to take advantage of unwary investors new to the crypto space.
This goes without saying, but any investment endeavor should always be approached with caution and a sense of vigilance. This is especially true with crypto investments where market volatility, hype, and a case of fear of missing out (FOMO) are commonly found.
With that said, one such case is HyperFund. Hyperfund is can be classified as a Ponzi or MLM scheme, otherwise known as a Pyramid scheme.
In short, some indicators that suggest their motives:
- HyperFund is not registered to provide any form of financial services in New Zealand.
- Warnings by UK FCA, suggesting HyperFund as an unauthorised firm.
- TrustPilot reviews by users who were vocal about their personal experiences with HyperFund.
And a few more that we’ll be highlighting in the sections below.
The company generates revenue from affiliates or members selling its services and products. However, oftentimes these types of schemes take advantage of unwary users by promising them an X amount of profit if they agree to invest an X sum of capital. These grand promises are often too good to be true, and that’s exactly why they’re dangerous.
In this article, we’ll be taking a look at HyperFund, as well as review the kind of scheme they are offering.
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What is HyperFund?
HyperFund claims to have constructed a DeFi (Decentralized Finance) ecosystem for digital currency users with multiple decentralised service platforms and blockchain infrastructure.
Referral commissions are paid to affiliates that recruit new users which then places them at the top of a unilevel team.
To join an affiliate membership, a purchase of 300, 500, or 1000 HU is required by sending USDT at a 1:1 ratio. The promise from Hyperfund; 0.5 – 1% daily rewards totaling a 200-300% ROI paid in HU.
HU is an internal token that holds no real value, to take profit on HU you must convert to MOF through Hyperfund then withdraw to an exchange.
The problem here; MOF could lose value rapidly like Xu’s failed HyperCash shown below and you could be left with much less than your initial investment.
Who is behind HyperFund?
The HyperTech Group was founded by Ryan Xu in 2014. The website showcases Xu as a successful investor and entrepreneur in the Blockchain space, information online suggests otherwise with other failed cryptocurrency launches appearing in searches.
Prior to HyperFund, HyperCapital was created by the group with efforts to resurrect failed coin ‘HCash’. HyperCapital shares familiar business concepts to HyperFund but was eventually abandoned and its website non-existent.
Going by previous projects we can expect to see a similar stance and crypto-related fraud from HyperFund.
Is Hyperfund safe?
Here are some key factors as to why we think Hyperfund is not a safe investment.
- Hyperfund is not registered to provide financial services in New Zealand https://fsp-register.companiesoffice.govt.nz/
- Warnings by UK FCA on Hyperfund being an unauthorised firm https://www.fca.org.uk/news/warnings/hyperfund
- Hyperfund has no products or services on offer, affiliates are only able to market the affiliate membership itself.
- The additional service platforms listed under their ‘Hyper Ecosystem’ have no reviews online and do not appear to be operating.
- There are numerous poor reviews on Trust Pilot exposing the company to be a scam, most of the excellent reviews appear to be fake and are likely to be affiliates trying to sell HyperFund for their benefit.
- If you type ‘Hyperfund’ into google and the first two suggestions show ‘Hyperfund review’ and ‘Hyperfund scam’ which is based on common, trending, and previous searches.
HyperFund review takeaways
As we prefaced in the beginning, you should approach any investment endeavor with proper planning and research. Whenever possible, consult with multiple sources and references when you come across an offer or deal that may sound too good to be true.
It’s not uncommon for even the most avid investors to fall into false sense of security, opting to take their chances to make quick gains in favor of logical reasoning when presented with a lucrative opportunity.
Schemes and rewards that are offered by the likes of HyperFund can sound like a promising offer, but once you break down the details you’ll soon realize that things don’t add up. Again, if it sounds too good to be true then it might as well be.
A study by the Federal Trade Commission (FTC) in the U.S. of 350 MLM companies found that at least 99% of participants lost money in these schemes* (JM Taylor FTC, 2011).
With that said, we hope this brief review of HyperFund has been insightful for our audience and anyone looking to start investing in the crypto space.
HyperFund is not authorized to provide financial services in New Zealand and therefore is very likely to be operating illegally.
Keep in mind if you choose to invest with an unregistered company you are not protected by any NZ laws, and therefore run the risk of not getting your money back when an incident occurs.
Always ensure thorough research is done before investing online and if you’re ever unsure please contact us directly. For more information on scams please visit our Knowledge Base.
Further reading: Visit our Hub for more topics on crypto safety.
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