Velstand Trading is a scam HYIP purporting to present users with a chance to invest in Forex and cryptocurrency trades that give returns of up to 1% of the invested capital per day. The firm touts itself as the place online where “trаdеrѕ саn ассеѕѕ rеаl-wоrld markets and start trading on these immediately using cryptocurrencies.”
Cash Generators for Velstand Trading
The bulk of the cash that Velstand Trading claims to make comes from cryptocurrency arbitrage according to the legend on the firm’s website. Cryptocurrency arbitrage in business terms is simply buying altcoins where their price is low and selling where they attract a high price. In details, however, it involves taking advantage of the price differences in the cryptocurrency markets by buying a coin in a cryptocurrency exchange that is posting low prices and immediately selling the same coin in an exchange where the coin attracts a higher price.
The first problem I have with this company is its overreliance on cryptocurrency arbitrage to make profits, and how it stresses the simplicity of the procedures involved. For the purposes of clarification, cryptocurrency arbitrage is a complicated process. However, it may yield huge profits if done correctly; and this does not matter whether the processes are manual or automated. The company dismisses the possibility of profiting from arbitrage using manual procedures.
Obvious Flaws of Velstand Trading
Velstand Trading’s flaws, however, do not end with their blatant glorification of cryptocurrency arbitrage. Their investment plans, like those of every scam HYIP online, promise exaggerated returns to make potential investors want to sign up. And, they show an overreliance on the MLM referral scheme as another key money earner for their users.
People that have read my previous reviews will easily understand why MLM and HYIPs do not make for a good combo, especially where the firm relies majorly on these as a revenue earner for the users. Dishing out money to attract more investment is great. However, if it assumes the design of a Ponzi Scheme then it is not great for both the operation and its users. Many such scam HYIPs that show this overreliance also do not have investment plans with proper structures.
For the purposes of scrutiny, here is a look at the Velstand Trading’s plans.
This plan pays out 115% on the invested principal, or 0.5% daily for 30 business days, which is the tenure of the plan. The scam HYIP states that you can put in any amount between $10 and $999.
This plan pays a total of 122.5% of the total amount an investor puts in. The said amounts can range from $1,000 to $9,999. This ROI translates to 0.75% daily returns. The plan’s tenure is 30 business days.
For amounts between $10,000 and $150,000, you can make 130% or 1% daily through the Velstand Ultimate. This plan also has a maturity period of 30 business days.
Velstand Trading Referral Program
Aside from the business plans, the scam HYIP also claims to offer referral bonuses to users that invite others. For every invite, you get paid 5% of the investment amount your referral pays.
The scam HYIP joins many in the space that promises unsustainably high returns. The Velstand Ultimate plan, for instance, pays 130% of the invested amount in just 30%, or 1% daily. This statement means that if you put it, say, $15,000, you will get $150 every day and up to $19,500 in profits after just 30 days.
Even seasoned cryptocurrency arbitrage professionals do not make that much within such a short time. Velstand Trading as such, may not make enough from its operations to pay its investors the profits it promises and still funds its operations.
Moreover, the 5% unstructured referral bonus is huge by industry standards. It means the scam HYIP purports to pay as much as $750 for a referral that puts in $15,000. Such figures are unbelievably high, and in most cases, certainly unsustainable.
The HYIP space is a tricky one. Knowing genuine firms from scam HYIPs is getting harder by the day because most of the scam operations are doing a good job at passing off as genuine. For this reason, I normally advise users to check the plans, scrutinize the referral programs and question the promises that these companies offer. If the plans promise ridiculously high returns without a proper explanation on how the company makes the money, then the operation is most likely a scam. Velstand Trading has plans that promise very high returns. However, its money-making operations cannot bring in the amounts promised. For this reason, it is a scam HYIP.