As the economy is gradually tightening up, new distinct ways of making money emerges. In a country of the highest number of black persons - all trying to make ends need, no year do pass by without a crowd-moving money-making move.
As pathetic as it is, these money making moves do end in a predictable way even from first start discernable by the investors. One thing is sure, all the players in it want is to get quick sources of income no matter the stratagem involved.
Today's review is on the new Loom Nigeria Money Network
. This a peer-to-peer pyramid ponzi scheme similar to the doomed MMM but differs in the platform of operation.
While the MMM operated on a created online portal, the loom network has it's stay on the popular messaging app, whatsapp. While MMM's payment and processes was fully automated by the owners, Loom's own is left as a game
Looms Nigeria mode of operation
Reading this piece either as a potential investor to the scheme or just to get a knowledge of it, you might get confused about how this scheme do play out.
I first get to know about the scheme few weeks ago in school (checkings shows the scheme started in late 2018). A friend was trying to convince one of my friend to join the scheme, promising that he will get him registered for just N500 of which he stands a chance of earning N5,000 in the run. The possibility itself might have been correct as at then, but the intensity of persuation of the friend adding to my confusion made me hate the scheme before i came to know anything about it.
Before listing the breakdown operations, please be advised to invest into it as a game.
The Loom pyramid scheme has itself divided into four colour-coded levels.
photo credit: queennaijang
The top of the group contains the admin in the red level. He gets the payout until the group fills up. The next colour level is the pink which has a limited number of only 2 persons. Next is the blue color level which has a limited spot for 4 persons. The last color level is the purple level. This level is the entrance level for 8 beginners.
The modus operandi of the scheme has that each time 8 people join the group, the person in the centre, which is the red spot gets the entrance fees of all of those eight. After collecting the entrance money and altogether recruiting the last of the eight in the last color level, the Loom would then be split into 2 independent groups. At then, the admin would leave.
There would be a top half and a bottom half and each of them becomes new groups. The ones that were in the last colour level(purple) would move up to the blue color level. All others in other colour levels would upgrade to higher colour levels.
Let's take it more practical.
For instance, the filled group before being split had 1 person in the red colour level, 2 persons in the pink colour level, 4 persons in the blue colour group and 8 persons in the purple colour level.
With the one on the red central level gone and the group split into two. The upper top new group would have a new one red level person, a two new pink level members and a four new blue level members after they have all upgraded their levels. This applies aswell in the bottom group.
For the new two groups, eight spot in the purple colour level would be empty for new investors inwhich their entrance fees goes into the purses of the new red level admins.
The new red level admins create new whatapp groups to operate their ponzi e.g. with the name 'Daniel loom'
Loom Money Review - Is it a scam?
Loom money network is a loose form of ponzi scheme difering from the normal norms of most schemes which do have controls by the persons at the center.
All admins in the newly created whatsapp ponzi are bosses on their different groups and take whatsoever action they want.
On whether the scheme is a scam or not, the only preferable answer i can offer my readers is that according to the law of Nigeria, any organisation and financial scheme without necessary regulatory approval is illegal and can be sanctioned by the government.
The fact that the anonymous ponzi's operators couldn't be traced and punished makes them seem unstoppable. During the bliss of MMM, the government had been consistent in restraining it's citizen from such schemes like this.
As a game of chance, if you can earn much with little, you can lose much without knowing. Take care while gaming on it if you can't abhor it.