Before we delve into the major issue, What is a Ponzi Scheme?
A Ponzi scheme is an ‘organized‘ special kind of fraud based on a fake investment that one schemer (or group of schemers) gets other people to contribute money to; on a false premise of some unsustainable, fake investment returns. All Ponzi Schemes are built on treachery and lies!
Wikipedia simply puts it this way:
“A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from product sales or other means, and they remain unaware that other investors are the source of funds.”
So how can one easily spot a Ponzi scheme?
There are basic stuff you need to look out for; For example:
You hear the schemer make a statement like: “I have discovered a smart way to make money fast; instead of telling you that all of the scheme’s money comes from the investors like you and when recruitment can no longer be sustained that the scheme will come crashing down naturally.
I had a terrible encounter with this personally.
Having ascertained the true position of the term “Ponzi” and what it truly is, let us now plunge deep into the main issue and the reason I made this post…(Loom Money).
Now, What is Loom Money?
Loom Money is a smart Ponzi scheme just like other types of pyramid schemes. It moves in a circular form and can be likened to the normal “Contribution” or “Meeting” that most Nigerian cooperatives usually do. It started in the United Kingdom, spread to Australia, New Zealand, USA, Canada and it is currently trending in Nigeria which happens to be the first African country to embrace it (though with some level of caution).
A lot of folks are highly apprehensive of the scheme (and you won’t blame them following the ugly experience of most Nigerians with other previously failed schemes like MMM, Twinkas etc).
Let me make something very clear here and now:
Ponzi schemes are neither legit nor illegal…and yes Loom Money is a scam!
However, perspectives differ as we’re individuals and with a different worldview. For instance, I have never played any form of online betting before or lottery; be it Naijabet, Nairabet, BetNaija, BetKing or any of such; in fact, to be sincere, I have no iota of interest in it… But are people making money from it? Of course yes!
Are they sustainable…No! There are high-risk investments… They’re all classified as “Gambling/ Betting Platforms”. Nothing is promised, nothing is guaranteed, anything can happen!
So, if you’re considering joining “Loom Money”, you must do so with this kind of mindset.
What exactly am I trying to say: Now I’ll be very clear on this because I know that you’re an adult, with a mind of your own and capable of making a reasonable decision all by yourself.
Therefore, I won’t ask you to join “Loom Money” or not to join. This is the reason: Every Ponzi scheme usually yields high returns within their 1st- 6th month of doing business before they finally come crashing down; but then understand that it is “Gambling” and most religious faiths are against it too.
Therefore, if you can comfortably play Naijabet and the rest, then you can join “Loom Money” too (but at your own risk).
Is Loom Money Safe?
Of course NOT! Like every other similar Ponzi schemes, it’s not guaranteed.
But if you must join, the best time to do so is now because it just started gaining popularity here in Nigeria. From my own depth of experience, you will most likely be in good profit now before it crashes (which is certain) just like MMM.
How Much Do I Need to Join?
It’s worthy of note to let you know that here in Nigeria, the entrance fee is somewhat low as compared to the likes of the UK, Australia, US, Canada etc.
Loom Money is more popular in the UK than any other place in the entire globe, and it’s specifically targeted majorly at young people online.
Nonetheless, personally, I see it as a “Money Gamble” and no pretence, that’s exactly what it is.
Who Are Usually Victims to Cheap Schemes Like This:
- The Greedy
- The Lazy
- The Uninformed
It takes a greedy, lazy and uninformed fellow to believe they can build a true, legit and sustainable business on Ponzi schemes or even make money consistently by investing heavily in a scheme like “Loom Money”; for instance, look at what they’re promising:
N1,000 to make N8,000
N5,000 to make N40,000
N13,000 to make N104,000… Hey!
I believe if you’re truly smart, you should think deeply on this offer; like:
What do they make money from?
What products and services do they offer?
Who are the major investors in the scheme?
What are the news media saying about them?
Why should they pay you such an outrageous amount of money for just recruiting people into the scheme?
Are they registered?
One thing is certain, “Loom Money” promises a profit that is realistically possible but in an unrealistic manner because that promise is anchored on no proven/ verifiable investments of any sort; hence the promise was made on a false premise to lure in the uninformed…The promise is the bait!
Now, let me ask you:
Where is their office in Nigeria?
Who is in charge of “Loom Money” Nigeria? I’ll leave you to that.
Today, Loom Money is one of the hottest, trending topics in Nigeria (online/ offline).
Folks are also spreading some dedicated WhatsApp links claiming they operate Loom Money but the truth is: It’s all a lie and you should be careful. Why?
The answer is simple: This is the official Loom Money website: www.loommoney.com not .ng, .org, com.ng, .net, .com or any other type of extension; and the truth of the matter is that this very website is actually undergoing an upgrade as we speak following the information that we’ve gathered. However, the platform will go live soon.
In other words, I’m using this medium to warn you ahead of time, I’m not saying you should not join; but if you must join, then do so smartly and play the game with your brain; know the limits and know exactly when to disengage following all that I’ve enumerated.
If you’re not a gambler, please keep off from this scheme because it is not a business, neither is it an investment; and nothing is guaranteed. Worse of all, if you lose your money in the process, there’s no way to recover it.
Like what happened to MMM Nigeria, large scale apprehension will kill the system before it gets started. Owing to this very truth, the platform can last a bit longer if social media users will reduce the amount of fear and tension they create on this; secondly, if there’s a better channel to educate its members sincerely on what the system is truly all about.
Platforms like this will die naturally when there are some widespread rumours and fears bordering around its operations and sustainability; because they feed on the steady inflow of money from new members to continue functioning. Where that fails, then one thing is certain “A fatal crash”.
So get set as we await the emergence of some new multimillionaires as well as some countless others who will be licking their wounds from counting losses recorded from their involvement in the aforementioned scheme.
So choose your side!
Are you gonna play safe by sitting on the fence passively while it all plays out before your very eyes?
Are you gonna be taking it by force by playing it smartly like a smooth criminal?
Are you gonna be channelling everything you have or even borrow with the intention of winning big?
The choice is yours… You decide.
It’s a Dog eat Dog situation. Eat or be eaten, and don’t forget the greedy folks always looses out in the Ponzi play.
So my honest advice (for those of you who are heavy risk-takers)… If you must join, do so now that it’s still very fresh and hot.
If you can play sports betting with N1,000, N5,000, N20,000 or even N50,000 and lose it all without summoning folks for a village council meeting, then you can go ahead with Loom Money.
I know some people who have nothing else doing except sports betting. That’s just their own major income channel.
About 6 of my very good friends became millionaires from MMM because they joined earlier.
So in life, everything is a risk including sleeping and even eating. Therefore, you must strike a balance. If you must take a risk, follow your heart and be smart about it.
There is no business that is 100% safe. Personally, as an entrepreneur, I wake up to risks every day. How I handle them is all that matters. I have made some crazy amount of money from taking some crazy kinda risks as well as lost some good money from doing so or even doing nothing at all.
Your decision to play Ponzi Scheme is a personal decision, you must be prepared for its possible outcome which is: You either lose woefully or gain massively.
The government should regulate and register all Ponzi Schemes just like they’re doing with Betting and Lottery agencies and the owners should be made to own and identify with them proudly.
Can One Earn from It And How?
Of course, Yes! But you’re required to put in money to earn more money from other players.
Note: There is no real business they are investing the money you pay into so as to generate such huge profit to pay you such huge interest. They simple gather other people’s money and pay to you.
So the more people join, the more it works. It will only collapse the moment people start carrying rumours and spreading fear about it.
Basically, as with the structure of most Ponzi schemes, people naturally stop coming immediately there’s a widespread rumour or when the system reaches its “peak point” where further entrances become far lower than members awaiting payment; at such points the owner becomes greedy, refuses to send out payments and retains all incoming cash.
Who Owns Loom Nigeria?
For now, as we speak, I personally don’t know. Nobody is taking responsibility for Loom Money even though it started in the UK, then Australia, New Zealand, Canada, US and now using Nigeria as a vehicle to pioneer their movement here in Africa.
How Much Are You Expected to Earn In Return?
N1,000 to make N8,000
N5,000 to make N40,000
N13,000 to make N104,000
So you basically make 8 times what you put in.