Recently, Liberty Reserve, the largest and most popular payment processor in the HYIP world went offline. According to them, it was done to enable them carry out maintenance and also add new features. It is also clear that many users accounts were affected when they were blocked in error by Liberty Reserve’s automated scripted. While we enthusiastically welcome back Liberty Reserve, it is worthwhile to note that the sad part of the downtime (or maintenance) is that that it took rather too long to resolve.
The euphemism ‘forced extended maintenance’ did little or nothing to calm the HYIP industry fears, of potential scams. This is in view of the fact that maintenance scheduled to last between 2-4 days have extended beyond 7 days. Ironically, the fear is however not of a Liberty Reserve scam, but rather hundreds of HYIPs which heavily relies on them. The last time, another popular payment processor – Solid Trust Pay, carried out similar maintenance, some HYIPs like Investoria.com and Silverstructure went down under the fog in a scam.
All HYIPS (and indeed many business) depend on cash flow – either when paying old investors, or receiving new investments. When a major payment processor in the mold of Liberty Reserve goes down, the ripple effect in the HYIP world can be very devastating. Newer HYIPS are mostly affected, as they are mostly set-up with Liberty Reserves as their primary payment processors. Fairly old HYIPs will be inundated with bad votes, until HYIP Monitors downgrade them to ‘PROBLEMS’ or ‘NOT PAYING’ which usually ring the death knell for most HYIPs. Only the well established ones usually survive, with little or no issue.
In the end, investors and users of the processors are the biggest losers in some of these needless ‘extended maintenance’ of systems which are not 'obviously' broken. It is also important to suggest that when new features are to added to a sensitive business like Liberty Reserve, best practice and industrial standards requires that it be done with little or no disruption to the existing system, using a combination of cut-over and rollback techniques.
Though Liberty Reserve promised to add Credit Card Funding option to verified users, while this is a good development, the time spent in this downtime, has done a lot of harm to various users of their system. It’s high time Liberty Reserve users (HYIPs and other investors), who have not done so, diversified their payment processors. HYIPs program should also include features that enable them to easily migrate their subscribers to other payment processor.
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