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Nigerians Enjoying Loom, Another End Time Ponzi scheme



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Nigerians Enjoying Loom, Another End Time Ponzi scheme

A typical pyramid structure of Loom Money Nigeria (Pulse)
Two years after the popular Mavrodi Mundial Moneybox (MMM) Ponzi scheme crashed with millions of Naira lost, Nigerians are starting to flood towards Loom, another scheme that promises astonishing returns on investment. MMM penetrated the Nigerian market in 2015 with over 2 million people signing up for the scheme by the time it crashed in December 2016. Despite the loss of billions to that scheme and many of its ilk, Loom Money Nigeria is starting to gain widespread following among Nigeria's online community.Loom is a peer-to-peer pyramid scheme which involves people being invited to invest as little as N1000, or N2000, or N13,000 and get as much as eight times its value within a short period of time.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. 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 top half and bottom half as the investors in the outer levels move into new levels. 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. 
Loom circle or blessing loom is a Ponzi scheme even though the circle formula tends to dispute that fact. but if the circle grow and keep breaking you look at the form it is taken, it has become a pyramid scheme which is the same form the popular Ponzi scheme MMM took before it crashes out.
Apply some easy mathematics and the truth, flaw and inevitable failure, of this “blessed” system quickly becomes clear: if one person needs 64 new people to enter the loom to be successful, that means that all those 64 newcomers also need 64 new people to enter for them to make their €5250, which already brings us to 64*64 = 4.096 people. From here the numbers rapidly skyrocket into the thousands, as 4.096 * 64 = 262,144 new people and so on and so forth, always calculating *64. “A huge number of people that could profit from this easy system”, one could think, and that’s the message the “Loom” likes to spread, but an easy set of calculations helps us to conclude that 64 times more people will eventually get disappointed as every ad infinitum system is bound to fail for there is no way there will ever be enough people to support its growth until the end of time…

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