By SCAM ALERT! LIKE MMM, NIGERIANS ARE GETTING HOOKED TO LOOM PONZI SCHEME
Just like MMM did in its heydays, Loom Money Nigeria has been trending lately and is recruiting and targeting more young Nigerians into their program.
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Loom trend started like wild fire in Australia and then, it went viral on social media platforms and finally, it came to Nigeria.
The increasing trend of this scheme makes one to wonder if Nigerians can ever learn from their past mistakes of involving in a money doubling scheme.
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Loom also follows the pattern of every other typical ponzi schemes which comes with little attractive money to lure members because it feels like nothing to pay.
BlackBox Nigeria gathered that Loom is an old fashioned pyramid scheme repackaged and rebranded with a new name to scam users of their hard earned money.
Exactly like MMM which was literally the old name but since the founder, Mavrodi is dead, new people came up with a new tactic to scam users using same method. In fact, “Naijaloom” which is different from “Loom” is also out with different method entirely.
How Loom works
It always start by receiving an invite from someone to join a WhatsApp group promising that one would get N8,000 with just N1,000 or N104,000 with N13,000 and after payment is made, one will be asked to come with another down line to join the system.
There are four levels in Loom and they are Purple, Blue, Orange And Red. Immediately, 8 people joined the program, the person in RED will get his target amount and leave. Then, the loom will split into top half and bottom half as the circle begins again.
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Basically, the amount of people a user adds to the loom, the quicker the movement for the user to withdraw.
Scam or not?
Loom Nigeria is a ponzi and pyramid-selling scheme and they are often illegal or not sustainable to keep the circle moving.
Firstly, one have to pay to join the program. And for the first person to part away with any money, he or she has to supply 8 new members.
And to make money as Loom promises, one has to supply members in this format in a WhatsApp group:
1st payment attracts 8 new people.
For 8 people to be paid, the WhatsApp group needs 8 × 8 new members = 64 new members.
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For 64 people to be paid, the WhatsApp group needs 512 members which can be calculated as 64 × 8.
For 512 people to be paid, the WhatsApp group needs 4,096 new members and vice versa.
Getting to a point, the ponzi scheme won’t be able to get new investors or members in the system and once that happens, the program or system will crash and disappear with all available money with it.
Is Loom here to stay or just another looming heartbreak waiting to happened just like the ‘just to good to be true MMM scheme’, only time will tell.
