When MMM crashed, Nigerians thought they had seen the end of the ponzi scheme and others as they knew it. What most people do not know is that there are still Ponzi schemes that have been in operation for years. BTCInvestments, MMMBTC Online, Donation Hub, Twinkas, Naira Donation, Zigma, 247Helpers and Foster Funds are only a few.
Ponzi schemes all work the same way. You put in money, they double it or give you back a particular added percentage. Then you put more until it crashes and you lose money. Now, this latest get-rich-quick scheme targets young people.
Loom Circle ponzi scheme
Social media users are already starting to lose money all over the world with this new Ponzi scheme. The pyramid scheme has been circulating online and targeting people from various countries. The scheme, known as “fractal mandala” or “loom circle”, promises young people outrageous profits from little investment.
In the UK, people are being promised £1,280 back from a £16 investment. The scheme asks participants to pay upfront with the promise of getting back eight times profit. The scheme relies on participants recruiting other people to join in and put money in as well.
Usually, the money goes around within a circle and eventually dries up. The cycle is never sustainable and ends up getting banned by most governments.
With Loom, people are added to a WhatsApp group with about 16 to 100 people, and they all testify to receiving money. You will have to pay the money into a bank account with expectations of getting eight times the money back.
In Australia, it targets young people through social media networks like Facebook. They ask them to encourage their family and friends to join in and make quick easy money.
This new scheme is now getting attention on social media in Nigeria, and Nigerians are already debunking it as a scam.
Here are some of the hilarious tweets about it.
How people talk about LOOM vs what LOOM really is. 😂😂😂 pic.twitter.com/Tvrg1z3WCH
— Almighty Zak (@AlmightyZak) May 3, 2019
After doing 13k for 104k loom and everyone starts leaving the group chat. pic.twitter.com/2LRJ3KGmcN
— Almighty Zak (@AlmightyZak) May 3, 2019
“2k for 100k”??
Leemao 😂😂 ( X5)
Just ZOOM into LOOM and you will see your account BOOM. That’s when you will know that you’re DOOMED. pic.twitter.com/vcuDZwmqwp
— MALIK♔ 🇳🇬 (@MalikAce_) May 3, 2019
Las Las, Loom na scam.
Stop the Ponzi. pic.twitter.com/j3bKgJTlLS
— Creative Explorer of Light (@JaceTheJace) May 3, 2019
“good morning, would you like to use 1k to make 8k? I want to introduce you to loom…” pic.twitter.com/5BcKzeCkXC
— YOUR LAPTOP PLUG 🔌 (@the__realfabian) May 3, 2019