Loom: Why You Need to be Scare of Loom Ponzi Scheme in Nigeria | Nigeria News
Connect with us

Latest

Loom: Why You Need to be Scare of Loom Ponzi Scheme in Nigeria

Published

on

Nigerians all over the country have began to sign of for Loom, a ponzi scheme which started to make waves barely a month ago. However, Nigerians’ participation in the ponzi scheme isn’t so much of a surprise as much as the fact that the Nigerian public are yet to learn from the heartbreaks they have suffered in the past through ponzi scheme. It is even more surprising that this is coming after just years that the popular Mavrodi Mundial Moneybox crashed with a millions of naira lost and wasted.

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.

searchform

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.

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.

Over the years, the Nigerian government has issued several warnings to Nigerians to stay away from investing in Ponzi schemes that involve unregistered investments, unlicensed sellers, secretive and complex strategies.

Loom Money Nigeria only works now because earlier investors are being paid with investments acquired from the recent ones. Once that system slows down, Nigerians are simply left with a looming disaster.

Please share this info from NIGERIA NEWS, it is VERY important for all
  • 4
  •  
  •  
  •  
  •  
  •  
    4
    Shares
  • 4
    Shares
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Atiku and PDP are planning coup against president Buhari – Presidency

Published

on

The Presidency raises fresh call that the Peeople’s Democratic Party (PDP) and it’s presidential candidate, Atiku Abubakar, were working to make Nigeria unmanageable coupled with the aim of ousting the President, Muhammadu Buhari.

The Minister of Information and Culture, Alhaji Lai Mohammed, some days ago have alleged the PDP and former Vice President for plotting a coup. The Minister reiterated his stance at in his home state during the 2019 Edition of the Annual Ramadan Lecture held at Oro, Kwara State, declared that they were trying “reverse” democracy.

He alleged them of trying to heat up the polity so as to undermine the government of the ruling All Progressives Congress (APC). While he call on all Muslim Faithful to use this period of Ramadan in prayer for the country against the wiles of evil schemers.

He said: “This is the Holy month of Ramadan, and Muslim Faithful all over the world observe it with fasting, prayers, self-purification, renewed focus on religion and sense of community.

searchform

“It is therefore appropriate to use this occasion to call on all Nigerians to pray for our dear country, to pray for peace and unity.

“I make this request against the background of those who are daily plotting to exploit our national fault lines of religion and ethnicity, those who masquerade as democrats but can’t take electoral defeat, those who will not hesitate to collude with anti-democratic forces and dead enders to fan the embers of violence in the country and those who have elevated their personal ambition over and above our survival as a nation.

“As you are aware, a few days ago we raised the alarm that either by themselves or via their proxies, the PDP and it’s presidential candidate are doing everything possible to sabotage the Buhari Administration, generally overheat the polity and make Nigeria seemingly ungovernable.

“Of course you are aware of similar alarms that have been raised by the police, the military and the DSS.

“Since our intervention, pseudo and partisan analysts have teamed up with the spokesmen for the main opposition party and its presidential candidate to either exhibit their ignorance or to engage in red herring and name calling. We are neither distracted nor dissuaded.

“Our interventions are based on credible evidence, and no government with the kind of evidence that we have, of plans to subvert the power of the state, attack the nation’s economic live wire and generally unleash mayhem on the polity, will keep quiet.

“The security agencies are all alert to their responsibilities and will not sit by and allow anyone to reverse the gains of our democracy under any guise.

“I want to end my speech by thanking all Nigerians for their support and prayers for the Buhari Administration, and to urge them not to relent, especially in the run up to the May 29th inauguration of Mr President.”

The PDP presidential candidate in the recently concluded election said the accusation levelled against him was a plot to send him to jail. He said Lai Mohammed was known as a serial liar and his act wasn’t put to a halt even in this month of Ramadan.

He said, “My attention has been drawn to accusations by the Muhammadu Buhari led administration against the candidate of the Presidential Peoples Democratic Party in the 2019 elections and former vice president of Nigeria, Atiku Abubakar, alleging that he has made treasonable statements.

“It is not surprising that such a despicable lie is emanating from Mr. Lai Mohammed, President Buhari’s aptly named minister of information. Lai Mohammed is so associated with lies that even Vice President Yemi Osinbajo said, on Monday, May 13, 2019, as follows:

“People like Lai Mohammed, Abba Kyari, Adamu Adamu they are usually very well behaved during the Ramadan. But I’m not even sure that that is true anymore. “When we have a situation where even those who employed him know that Lai Mohammed is a liar, who will even lie during the holy month of Ramadan, then why should Nigerians be surprised at this latest lie?”

Please share this info from NIGERIA NEWS, it is VERY important for all
  •  
  •  
  •  
  •  
  •  
  •  
Continue Reading

Latest

Why AAC susppends Omoyele Sowore from Party

Published

on

The National Executive Committee (NEC) of the African Action Congress AAC has suspended it’s National Chairman, Omoyele Sowore.

The party announced this on Monday, May 13th, at the party’s NEC meeting in Abuja,

NEC disclosed that the former Presidential aspirant is being suspended for alleged anti-party activities, failure to convene NEC meeting and financial misappropriation.

The party has however appointed a new acting national chairman, Leonard Nzenwa, who has immediately been sworn-in.

searchform

The committee of AAC also announced that the suspension of the presidential candidate and other members of his executive takes effect from March 27 and it is to last for six months except overturned by a National Convention of the party.

Stay with Nigeria News for more update on this

Please share this info from NIGERIA NEWS, it is VERY important for all
  • 5
  •  
  •  
  •  
  •  
  •  
    5
    Shares
  • 5
    Shares
Continue Reading
Advertisement

contact us

email for nigerianews

NigeriaNews_net

Advertisement

Trending