Nigerians are investing in Loom and getting paid here’s what happens next
Few years ago, a woman who was reportedly a member of the Reddeem Christian Church Of God, (RCGG) , was about to drown herself in a Lagos lagoon, following the crashing of popular Mavrodi Mundial Moneybox (MMM) Ponzi scheme.
However, Nigerians are again investing into the Ponzi Loom another scheme that promises astonishing returns on investment.
A whooping 2m people were MMM members back in 2015, with more signing up to the money exchange scheme pirrior to its crashing in December 2016.
Despite the loss of billions to that scheme and many of its likes, Loom Money Nigeria is starting to gain widespread following among Nigeria’s online community.
What is Loom about?
Loom is a peer-to-peer pyramid scheme that involves people investing penny, low as N1000, or N2000, or N13,000 which they’ll be getting up to 8x it’s value within a few days.
With the different colors purple, blue, orange and red, indicating four colour-coded levles. The first person to sign up in the loom group sits on the red level, which is the middle level, then gets all payout after the group is filed up.
2 people sit in the orange level, while four investors make up the blue level. The purple level takes new entrants with eight spots open.
Immediately the 8 spots in the purple level are fully occupied, the group divides into top half and bottom half as the investors in the outer levels push into new levels.
To continue the circles the new group of seven has to invest eight new eight persons to invest. This then breaks the circles into another two groups.
Loom works perfectly only when there are new investors coming in daily to help recycle the group. The principle is that the old investors gets paid with the cash invested by the new investors.
Once you’re signed up to loom, you’re typically invited to join a WhatsApp group and oriented to get as many other investors as possible.
Initially your first payments are given to the group admin who sits top of the red level. The more members in your WhatsApp group, the faster payouts.
Possible Payouts In Loom
If you invest N1,000, you get N8,000; if you invest N2,000, you get N16,000; and if you invest N13,000 you will get N104,000.
With the poverty level in Nigeria hitting extreme heights, it’s however, not surprising that youths are desperate to accumulate wealth through this to get-rich-quick schemes.
Precious, a student of the University of Nigeria Enugu (UNN) told Gutsynaij she had to invest N13,00 in Loom after she spent part of her school fees to invest in a saloon business that’s yet to make any returns she hopes to get her money back from Loom instead.
“The payment of my school fees is due next week, so I’m desperate to get money,” she said.
According to her, she was promised a quick Loom payout after the next 49 hours of her investment, but was yet to receive any dine after the next five days.
She’s now an official social media marketer for Loom inviting her friends to invest in other to get her money back.
Am surprised though! Personally, I’ve made few research about Loom and frankly speaking, the sustainability of this platform remains in doubt again people will inevitably lose their money in the system.
When investors start to dry up, groups will take longer to fill up, and newer recruits will lose their investment without any payouts. This will only be averted if there’s an unending supply of new investors, an impossible feat.
The damming consequences cause few Ponzi Schemes in Nigeria can’t be swept under the carpet.
The Nigerian government has issued several warnings to Nigerians alerting them on the consequences of investing in such Ponzi schemes.
According to them, these Ponzi schemes are unregistered investments, unlicensed sellers, secretive and complex strategies, used to deceive people.
Why Loom Money Nigeria Works
Loom Money Nigeria only works now because previous investors are getting paid with the investments, acquired from the recent ones. Once that system slows down, Nigerians will be languishing with a looming disaster