Loom Money Nigeria is another Money Making Machine in the making. But as many Nigerians never learnt their lesson from the past heartbreaks experienced with other Ponzi schemes.
Some years after the popular Mavrodi Mundial (MMM) Ponzi scheme crashed with more than 18 billion Naira was lost by more than 3million Nigerians. Here is another flooding scheme called Loom, this is another scheme that promises astonishing returns on investment.
Is Loom Money Nigeria A Scam or Legit?
Never mind my judgement, because this is my own subjective opinion and from other sources of this writeup.
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.
Despite the loss of billions to Mavrodi Mundial (MMM) scheme and many of its ilk, Loom Money Nigeria is starting to gain a widespread following among Nigeria’s online community.
How Loom Money Nigeria Works
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 a top half and t
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.
Most Watch Clip below on how Loom Scam
Even though she was promised a payout 48 hours after investment, she’s yet to get one after four days and is desperately trying to recruit her close friends and social media followers to invest in the scheme too.
With the way Loom operates, it’s clear to see that it’s not a sustainable investment scheme and that 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.
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.
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