Ponzi Schemes Will Always Be A Bad Idea

Loom

Loom Is Doom

What is the logic behind joining a WhatsApp group, sending N3,000 to someone you know, recruiting someone else and the somehow magically getting N16,000 back? Nothing. There is no logic behind; it is simply yet another scam in the long line of many that have come before. Hear us loud and clear: Loom is a scam. It doesn’t only put you at risk, it demands that you rope in family, friends, people you know and care about into one of the most manipulative and sinister pyramid schemes out there.

For those of you wondering what we’re talking about, Loom is a ‘new’ Ponzi scheme – much like MMM – making its way around social media and luring people in with the promise of 8 times what you put in. If you want to know how it works, please refer to the first 2 lines of this article. Essentially, money will keep going around in circles as more people are recruited. Very soon, the rate at which recruits will come in will slow down until it comes to a complete halt. At that time, those who cashed out earlier will thank their lucky stars, while many of their family members will be left devastated.

If you’re in doubt about whether this will happen, we can assure you that it will. And if you are one of those or happen to know anyone who is looking to get in now and cash out before the thing goes bust, let us appeal to your moral conscience. What you would have inadvertently done is stolen from your family and friends to enrich yourself. Not only is that illegal, it speaks very poorly about our integrity and moral responsibility to each other.

Rather than let greed have its wicked way with us all, there are several other safer, better, and more legitimate ways to make your money work for you. Maybe you’re thinking, “Yeah, yeah, yeah, we have heard about investments, but are the returns 8 times the amount I am investing?” The answer to that: very few things are. However, there are alternative investment opportunities that you can take advantage of that will give you impressive returns and prove that you are a more-than-decent human being.

Say you have N20,000 you would like to invest. With a peer-to-peer lending platform like FINT, you can turn that into N27,800 in a year. If you want to put that into perspective, if you had kept the money in the bank you would either have N21,400 if you are the most disciplined person ever, or you would have N0 if you have the spending habits of most other people. If you wanted to invest in Treasury Bills, you would have to get 5 times more than that to even begin. Don’t let us even get started on what could happen if you go with Loom. Either way, you’re better off with FINT.

As a lender, besides lining your bank account, you also fill up your social and moral credit by funding someone else’s dream. Last year, a report was released that Nigeria is officially the poverty capital of the world with our citizens getting poorer every day. It’s safe to say that government cannot do much to help this situation for many people – at least not in the short term. The question is: how can we then come together to fund productivity and improve the economy we all must exist in? We have all heard mantras like, “It all begins with you” or “Little drops of water make a mighty ocean”; these are not common sayings for no reason.

Hear us today: your stand to build people up – and not purposely scam them of their hard-earned cash – will go a long way to make a difference. The ripple effect of your actions will inspire others to do same and will quickly bring many more people to a financial pool that we will all can drink from and replenish at the same time.

You’re better able to be your brother’s keeper when your finances are safe, secure and sorted.

Please share your thoughts in the comments 🙂

You can also read our last post on What You Should Look Out For Before You Invest

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