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Loom Ponzi Scheme 2021 See the Seeming Benefits and Untold Danger

Filed in Articles, Business & Entrepreneur by on April 15, 2021

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If you are currently putting your hard-earned money into Loom Ponzi Scheme, trust me, you will soon be on a long thing. It’s a fact that some Nigerians are hustlers. In fact, an average Nigerian has the potential of making money from anything. However, the urge to make money often leads some astray.

Here, you will get to learn everything about the Loom Ponzi scheme, its benefits as well as the untold danger of the loom Ponzi scheme. Read this post carefully

Loom Ponzi Scheme | The Seeming Benefits and Untold Danger

Loom is a Ponzi scheme. You put a certain amount of money and get double. It sounds really amazing, right? Yea, of course, it. But I bet you, you’ve not heard or seen the untold danger associated with it.

What is a Ponzi Scheme?

A Ponzi scheme is a form of fraud. And it lures investors and pays profits to earlier investors. This is with funds from more recent investors. Also, Ponzi schemes typically deceive victims. And this is making them believe that profits are coming from product sales.

It is on record that, despite the harsh economic climate, Nigerians, as in December 2016, threw about N12 billion away to Ponzi schemes such as the popular but now defunct MMM. You can get this information HERE.

What is Loom Ponzi Scheme?

Loom Money Nigeria is the latest Ponzi scheme in the country. Nairametrics understands that it is a peer-to-peer pyramid scheme. And it follows the same pattern as the now collapsed MMM.

Following the launch of Loom, some Nigerians have thrown caution to the wind. They rush to partake. However, forgetting the recent drama that accompanied the collapse of MMM.

How Loom Ponzi Scheme Functions

This is how it functions. The ‘Loom’ sits in a circle. And every time a new person is recruited, others are pushed closer. They are pushing closer to the center of the circle. That is where they’re promised a payout.

Also, there are four main levels in Loom. These levels are Purple, Blue, Orange, and Red. Immediately after eight persons joined the program, the person in Red (center) qualifies to get his target amount. And after that, he/she can leave.

Afterward, the Loom will split into the top half and bottom half. this is as the circle begins again. Furthermore, basically, the higher number of people you add to the Loom, the quicker the movement for you to withdraw your initial investment.

Loom Ponzi Scheme 2021 See the Seeming Benefits and Untold Danger

Steps Involved in Loom Ponzi Scheme

Below are the step-by-step procedures of Loom Money;

  1. You are invited/lured to join. And this is by either friend, relatives, colleagues, etc.
  2. Also, you are then asked to invest either N1,000 or N13,000. And this comes with promises that you will earn eight times the initial amount. this is when your circle is complete.
  3. Furthermore, after “investing”, you are then required to invite more people.
  4. Also, you must be aware of the four steps earlier mentioned.
  5. Additionally, the more people you add, the sooner you get to “cash out”.

Is Loom Ponzi Scheme a Reliable Source of Income? 

However, some people who are into this Ponzi scheme have proofs, note.  It is pertinent to know that Loom Ponzi Scheme should not be considered a sustainable investment. Also, it’s basically like transferring money around to different people.

However, those at the bottom eventually get screwed. In other words, if people are unable to find investors and move closer to the center of the circle, the last people to invest lose their money. Thus, Loom Money Nigeria is dangerous. And the end result is expected to be tragic.

Just like MMM, this cycle only benefits the early users. As new entrants begin to reduce. And sometimes people tend to slow down payment when things begin to go slow. Thus, leaving the latter investors to carry the burden of a failed Ponzi scheme.

The Seeming Benefits of Loom

Loom is a peer-to-peer pyramid scheme. And it involves people being invited to invest. Also, you can invest as little as N1000, N2000, or N13,000. And it is assumed that you can recoup as much as eight times the value of what is invested. This is within a short period of time.

Also, if you invest N1,000, you get N8,000. And if you invest N2,000, you get N16,000. Furthermore, if you invest N13,000 you will reap N104,000. It is really tempting to Loom right now, trust me. Ponzi scheme is amazing, right?.

However, have you thought of what happens when new investors aren’t coming? Also, what happens when people cash out and refuse to re-join? Again, what happens when enthusiasm wanes? Here is what will happen. The scheme crashes. And people lose money.

The Untold Dangers of Loom

Like every Ponzi scheme, Loom operates a flat structure. Also, there are no bosses or heads. Furthermore, there is no one calling the shots from marbled offices.

Additionally, there are no known faces to this thing. Just unsustainable money in circulation. And everyone is a player. The game is the game.

Thus, if you lose your money, there is no one to hold accountable. There is no one to be sued. In fact, if you lose your money, you have lost it forever. To a large extent, Ponzi schemes are set up not to last for a short time.

In a nutshell, note. Loom isn’t the most sustainable way to invest your hard-earned money. While you jubilate at the moment and tell family and friends that the whole set-up is a real note.

The day would definitely come when the cash dries up. And the millions you just invested never return. That day would eventually come when the last payment you funneled into the scheme would be the last the scheme receives before everyone disappears

Thus, beware. Having read this, make a rational decision. However, any decision you make, be ready to bear the consequences. Though making money involves risk, however, be sure the risk is worth it.

In conclusion, having read this post, share with us your take on this in the comment box. Also, please do not hesitate to share this post with friends are relations using our share button below.

CSN Team.

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