Sirwin
Sirwin

ScamBuster – HyperFund Review


Those inside the crypto world will most likely have heard of HyperFund in 2021. To date, there are very mixed opinions about this project, so I decided to bring also my objective analysis about it.

But what exactly is it about? Is it legit? Is it a scam? Is it a Ponzi? Let's say it's not a scam (for the moment) and it's paying. How does it work?

HyperFund is part of the HyperTech Group, "The Group will further spread the influence of token investments in traditional industries, in the areas of asset tokenization, industry tokenization, management tokenization and other sectors. HyperCapital aims to create a cryptographic environment that enables digital asset holders to place their assets in an automated passive income generation system."This description says everything and nothing. As you can see it's quite vague and talks about tokenization of assets (basically "tokenize" means to give a value to an object and track its price virtually).

The founder is Ryan Xu. On their website he is described as “a famous investor and entrepreneur in the Blockchain space. He is also the founder of Bitcoin Development Foundation, and a member of Asia’s DACA Blockchain Association, and a member of the China Bitcoin Roundtable Forum.”

The ecosystem consists of: HyperPay, HyperFin, HyperBC, HyperMining, HyperTalk, HPX, HYperNews, HyperMall, and HyperShow. Within HyperTech Group we find Blockchain Global (formerly called Bitcoin Group), HCash (HyperCash), CollinStar and Digital X (companies all fairly unknown in the industry). Ryan Xu a few years ago called himself Zijing Xu (Collinstar linked to HyperCash is in his name). In 2017 Zijing would have raised capital for 100 million yuan from Chinese investors with an ICO named Media Chain then failed. On the net, many blockchain projects supported by Mr. Xu are labeled as scams, such as HPS, HRS and MediaChain.

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How does HyperFund work?

  • By purchasing a license of 1,000$ the company creates a portfolio of outstanding rewards worth 3,000$. The outstanding rewards are released daily with a % ranging from 0.5% minimum guaranteed up to a maximum of 1%. Returning to our example in a nutshell with the license from 1,000$ you are released from 5HU to 10HU (HU is the stable coin of the company where 1HU = $ 1) per day. You join through the purchase of a membership currently: $300 - $500 - $1000 or multiples thereof. Once the membership has been purchased, a wallet containing outstanding rewards equal to three times the value of the membership purchased will be created.
  • Once you join HyperFund you have two options:
    Enjoy your membership and wait for the end of the license acquired by making a x3 or bringing other people into the community will accelerate the receipt of your outstanding rewards by receiving a % of the daily earnings of the submitted clients.
  • The deposit is done by sending USDT to the code erc20 which is inside your profile, you can use Binance or any other wallet/exchange. The Minimum Payout is 50HU = $50.

Hyperfund will generate earnings by "trading" the cryptocurrencies and promising the client an income equal to HU 1.5X and 3X depending on how much you spent upon joining Hyperfund.

Below a couple of images about HyperFund compensation plan:

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Ryan Xu's projects and his ambiguous past:

  • Bitcoin Group (fundraising IPOs were held as early as 2014, the company had problems with Australian antitrust and they were forced to refund funds to all investors due to regulatory defaults).
  • Blockchain Global (founded in 2016 and acquired Digital X and ACX which failed miserably. Investors lose about $10 million and ACX has its license revoked. Xu defends himself by saying that the company had been sold to Peak Trading Group Pty Ltd, he also ends up under investigation and his license is withdrawn. Same for Allan Guo who is mentioned among the liquidators).
  • MediaChain (the ICO for the MDC token in the television industry is launched, then it is dumped and the investors lost about 15 million dollars).
  • Hcash and Hshare (pyramid network with the token going to zero with losses of over $1 billion).
  • HyperCapital and HyperCash.

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  • HyperFund, in 2021 the umpteenth new platform is created that changes name and with the token HyperCash then delisted from Binance. In the meantime, the platform, making fun of all the naive people who invest in it, continues to put brand new tokens on the market: HDAO, MOF, etc.

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Not to mention new ambiguous initiatives like HyperMining. Many of these tokens are worthless, as they are only exchangeable on HyperFund. All these tokens have volumes that are virtually absent elsewhere, the value is dictated solely by the members of the ecosystem. Probably part of the various memberships purchased are used to pay, as long as it is possible, the members registered on the platform. The other money probably comes from the dumps that these tokens have gone to.

In addition to the withdrawal of licenses from Xu on Australian soil, HyperCapital was banned by UK regulators in April 2021 for not being authorized to raise funds from private and retail investors. Regulators in the UK have issued notices against that fund and the Financial Conduct Authority (FCA) has stated: "We believe that this company may provide financial services or products in the United Kingdom without our authorization. Almost all companies and individuals offering, promoting or selling financial services or products in the UK must be authorized or registered by us. This company is not authorized by us and is targeting people in the United Kingdom. You will not have access to the Financial Ombudsman Service and you will not be protected by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong."

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https://www.fca.org.uk/news/warnings/hyperfund

The company does not even have authorization from Consob to operate in my country, Italy.

In September 2021, the Indian government, following several complaints against HyperTech Group, is investigating the company. It seems that in several states of India complaints against this company have started to rain down. Following measures taken by financial regulators such as the SEC in the US, and the FCA in the UK, Indian regulators and supervisors have started monitoring HyperFund investments. Although the company's headquarters are divided between Honk Kong and Dubai, the current location of Xu and other members of the company is unknown.

HyperFund is sold as a DeFi. In fact, it has all the features of a CeFi. If you don't know the difference, you shouldn't invest in crypto before you understand this concept.

In a DeFi, your money remains yours, even if it's in crypto form, and what you are granted is a technological tool to manage it. If the DeFi closes, your money doesn't disappear as well.

In a CeFi, on the other hand, you entrust your money to third parties, who manage it for you. You give the managers control of your money, and they decide if and when you can get it back. If CeFi closes, or the founders disappear, your money disappears with them.

So, HyperFund is for sure some kind of CeFi.

With this article, I hope to have clarified the HyperFund issue a bit more. We must always pay attention and try to verify as best as possible all the investment opportunities that are presented to us, to avoid falling into possible scams and never see our money again.

Let me know what you think about it in the comments below.

See you at the next review!

How do you rate this article?

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MikeZillo
MikeZillo Verified Member

Daily Trader, Mining Farm Project Manager, Blockchain consultant, Cryptocurrency evangelist. You can find more videos here https://www.youtube.com/channel/UCvyXx6I1C__zmLAYUXNZwQQ? Telegram: @mikezillo


ScamBuster - Where the light enters into the dark
ScamBuster - Where the light enters into the dark

Scam - Strange Controversial Activities with huge Marketing is the correct acronym for SCAM. In this section we will evaluate arguable projects, with dubious assets and suspicious people. Not just what have already been declared a fraud. We will also evaluate ongoing projects to create awareness around them

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