A Few Things You Should Know About Loom Ponzi Scheme

A Few Things You Should Know About Loom Ponzi Scheme

Most Nigerians, especially those on social media, have totally embraced LOOM, the latest ponzi scheme in town, despite the bitter experience they had with various Ponzi schemes in the past. When Mavrodi Mundial Moneybox (MMM) crashed in December 2016, many who lost their investments in the scheme vowed never to get involved in any form of ponzi scheme again. However, today, it is a case of a dog going back to his vomit as it appears that most Nigerians have rescinded their vows and are fully into Loom. 

Whether we like or not, a ponzi scheme remains a ponzi scheme regardless of the name it is clad with. Ponzi schemes share something in common – the early birds benefit whereas the latecomers become victims. This is something you should know. But if you still insist on investing in LOOM, below are a few things you should note.

How Does Loom Work?
1. Loom was first reported in the UK by an Australian media, ABC News (Australian Broadcasting Corporation) as a scam after it had gone viral in Australia.

2. With thousands of active members, Loom is now the latest ponzi scheme in Nigeria.

3. The first step of the process is being invited to join a WhatsApp group chat, usually by a friend or relative. Then you are asked to ‘invest’ N1,000, N2,000 or N13,000 with a promise that you will make eight times the amount once you recruit new entrants.

4. After you have paid in the money, you are asked to invite at least one person to join the system.

5. There are four levels in Loom Nigeria: Purple, Blue, Orange and Red.

6. Each time eight people join the loom, the person in the centre (Red) will get the target amount and leave the group.

7. The loom will then split into two groups. The top half and the bottom half become the new looms, and everyone moves into the next level (Purple Level – into Blue Level – into Orange Level). And the cycle begins again.

8. The more people you manage to add to the cycle, the quicker the movement of it, and the easier it will be for you to make your chunk of ‘easy money’.

9. The basics are that you get eight times the amount you invest. 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.

Although most social media platforms are inundated with positive testimonies about the scheme, you still have to tread with caution if you must invest. Your experience with MMM, Ultimate Cycler or other ponzi schemes in 2016 should be your best teacher. Before you LOOM, be sure you can pull yourself together in case you get DOOMed.

Tamuno Reuben

Those who seek knowledge seek power because the pen is mightier than the sword.

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