I will say the Loom Ponzi Scheme is a Rebrand of MMM
Loom Is The Latest Ponzi Scheme In Nigeria
Loom Money Nigeria appears to be the latest ponzi scheme trending among Nigerians and recently,
it has been targeting and recruiting more young Nigerians into their program.
I’ve done my own research and gathered that the Loom ponzi scheme first appeared in UK,
moved to Australia trending massively in both countries and finally, it is in Nigeria.
Loom is a peer to peer pyramid scheme just like other ponzi schemes, which readily brings to mind the famed MMM scheme founded by the late Mavrodi.
How Does the Loom Scheme Work?
Someone invites you to a WhatsApp group where you are promised a return of N8,000 for contributing N1,000 or get N104,000 by contributing N13,000.
After joining the system and making a donation, you have to find friends and relatives to also join the ponzi scheme and donate money.
There are four levels in Loom and they are Purple, Blue, Orange And Red. Immediately,
8 people join the program, the person in RED (center) will get his target amount and leave.
Then, the loom will split into top half and bottom half as the circle begins again.
Basically, the number of people you add to the loom, the quicker the movement for you to withdraw yours.
In summary, you have to pay to join the program and then look for 8 new members
to join the WhatsApp group and those 8 people also have to continue the process to keep the scheme working.
1st payment attracts 8 new people.
For 8 people to be paid, the WhatsApp group needs 8 × 8 new members = 64 new members.
Futher more 64 people to be paid, the WhatsApp group needs 512 members which can be calculated as 64 × 8.
Addition to, 512 people to be paid, the WhatsApp group needs 4,096 new members and continously.
People Experience Detail
“I joined the group on Saturday and I cashed out N16,000 on Sunday, Loom is real,” said Rose, a phone outlet attendant.
She said she is presently investing for a friend of hers. Once she cashes that out, she will do another round for herself again.
Another benefactor, Gbenga Ojo, said he joined the group on Saturday with N1000 and cashed N8000 out that same Saturday.
“I have presently invested N2000 in three different groups hoping to cash out soon,
“Even if it crashes like MMM, I know I did not lose anything, “he said.
While some Nigerians are being sceptical of joining the money doubling train, some
are sure they will not because of their past experience with various Ponzi like MMM,
Twinkas, Charity, Zar Fund, Ultimate Cycler, Get Help Fund amongst others.
Mrs Odunayo, a government school teacher, said: “even though I didn’t lose more than one thousand in MMM, I don’t think I can do any other Ponzi.”
She said even if she would do, she would not invest more than a thousand Naira
Meanwhile, Felicia Happy, a police officer, said she can never invest her hard earned money in any Ponzi scheme.
“ I cannot invest in any of these Ponzi. Even when MMM was thriving, I did not think
it twice, because I believe the day I put my money that is the day it will crash.”
Is Loom real?
While people who are into this Ponzi scheme have proofs to show as evidence of payments
to lure new people into this platform, it is pertinent to note that Loom Money Nigeria is not a sustainable investment, neither is it legal.
The Impending Doom
Practically, you pay to get involved in a Ponzi scheme. Loom Money Nigeria
relies on “you” to recruit other people to join up and to part with their money just as you did.
In order for everyone in the scheme to make profits, the supply of new members is expected to be unending.
Each WhatsApp group or other social media platforms is expected to be growing with
new members to make the kind of money Loom Money Nigeria is promising.
Therefore, should some members fail to keep up with the commitments expected of them
to get their expected returns, the amount of money coming into the scheme will ultimately dry up;
causing people to lose their initial investments just as it was the case with MMM.
Loom Money Nigeria is dangerous and the end result is expected to be tragic.
This is because by inviting your friends and family members to join the platform in order for you to cash out, you are basically scamming them.
Essentially, you’re scamming your family and friends because it is your immediate circle
that you are the Ponzi scheme onto — it’s basically like transferring money around to
different people until the people at the bottom of the get eventually gets screwed.
A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.
Ponzi schemes typically deceives victims into believing that profits are coming from
product sales or other means, as they remain unaware that other investors are the source of funds.
scheme tagged loom money
online investment scheme tagged
notify the investing public
ponzi scheme where returns
people’s invested sum
paid from other people
groups mainly on Facebook
returns are paid
people promoting loom
acting director general
Facebook and whatsapp
tagged loom money nigeria
investment scheme tagged loom
pyramid scheme operates
local ponzi scheme
tangible business model
investment in 48 hours