Nigerians welcome Loom, another Ponzi scheme, with open arms

Nigerians welcome Loom, another Ponzi scheme, with open arms

Nigerians are signing up for Loom despite past heartbreaks experienced with other Ponzi schemes. Two years after the popular Mavrodi Mundial Moneybox (MMM) Ponzi scheme crashed with millions of naira lost, Nigerians are starting to flood towards Loom, another scheme that promises astonishing returns on investment. MMM penetrated the Nigerian market in 2015 with over

Nigerians are signing up for Loom despite past heartbreaks experienced with other Ponzi schemes.
Two years after the popular Mavrodi Mundial Moneybox (MMM) Ponzi scheme crashed with millions of naira lost, Nigerians are starting to flood towards Loom, another scheme that promises astonishing returns on investment.
MMM penetrated the Nigerian market in 2015 with over 2 million people signing up for the scheme by the time it crashed in December 2016.
Despite the loss of billions to that scheme and many of its ilk, Loom Money Nigeria is starting to gain widespread following among Nigeria’s online community.
Loom is a peer-to-peer pyramid scheme which involves people being invited to invest as little as N1000, or N2000, or N13,000 and get as much as eight times its value within a short period of time.
The Loom pyramid is grouped into four colour-coded levels – purple, blue, orange and red. Whoever is the first to sign up for the group sits in the red level, which is the central level, and gets the payout when the group fills up.
Two people sit in the orange level, while four investors fill the blue level. The purple level takes new entrants with eight spots open.
Once the eight spots in the purple level are filled, the group splits into top half and bottom half as the investors in the outer levels move into new levels.
The new groups of seven investors each then have to recruit eight new investors to once again break the circles into another two groups.
Investors are typically invited to join a WhatsApp group and advised to get as many other investors as possible because the scheme only works if it keeps a steady stream of new investors to pay earlier investors.
The more people are recruited into the group, the quicker it breaks and the quicker the payouts are to investors. The initial investment is usually paid to the group admin who sits in the red level.

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