Weeks after Loom, a Ponzi scheme, became popular, especially among Nigerians on social media, the pyramid scheme has slowed down as fewer people now reportedly invest in it.
A report by Premium Times states that various Loom groups have become inactive lately, a development which, the report says, could be linked to the bitter experience millions of Nigerians had when another Ponzi scheme, MMM, crashed in 2016.
Some Nigerians have started complaining of the slow pace at which the scheme is going.
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“The progress is not encouraging at all, once I cash out in this round, I won’t put my money again,” said Rose, a phone outlet attendant interviewed.
“For the past one week, no new person has joined the group,” Rose said.
“People are afraid it might crash soon, so once they collect their money, nobody markets for the group again.”
According to her, she has “cashed-out” N88,000 so far with the N11,000 she ‘invested.’ She said she put in N2000 three times to get N16,000 each and also invested N1000 in five places to get N8000 each.
Another 'investor', Femi Smart, said: “Loom is a teamwork, if everybody is working, we will all get our money and if we don’t invite people, then the scheme will go off”.
Smart, who also reportedly confirmed the slow pace of the scheme said: “Everyone is being careful to invest because of what happened with MMM.”
Rabi Yusuf, a hairstylist, said she believes she has lost her money as she has not been able to convince anyone to join her group.
She said: “I paid 2k into someone’s account since last week, I have not heard from her since I am not on WhatsApp. Any time I call, she will say I should look for somebody to join the group so I can get my money fast.”
Ms Yusuf said she would not mind having her capital back without gain.
Meanwhile, the Securities and Exchange Commission (SEC) has earlier warned Nigerians against Loom Ponzi scheme saying, it is ‘a looming danger’.
According to the acting director-general of the SEC, Mary Uduk, an inter-agency committee, Financial Services Regulation Coordinating Committee (FSRCC) is collaborating with security agencies to track the group and shut it down.
She said: “We, therefore, wish to notify the investing public that the operation of this investment scheme has no tangible business model, hence it’s a Ponzi scheme, where returns are paid from other peoples’ invested sums. Also, its operation is not registered by the commission."
Earlier, Legit.ng reported that despite unpalatable experience millions of Nigerians had with various Ponzi schemes in the past, a similar scheme, Loom had started making waves among many Nigerians on social media.
Legit.ng’s regional reporter, Adejayan Oluwagbenga Gsong, reported that many Nigerians were already taking chances with the new Ponzi scheme.
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