What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for early investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers. Both Ponzi schemes and pyramid schemes eventually bottom out when the flood of new investors dries up and there isn't enough money to go around. At that point, the schemes collapse.
Based on the definition above, is loom a Ponzi scheme? In case you are not sure let me give you key features of a Ponzi scheme.
1. The first beneficiaries of Ponzi scheme never invest cash.
Look at the loom chat above
So I said I already have 6 people all we need is 8 people to complete the loom.
You were meant to believe I made payment to someone but I never did. I downloaded the diagram from the net, filled in the spaces with the names of my 2 sisters and 4 friends. Am waiting for 8 people to scam. After am gone, one of my sisters will also dupe another set of 8, followed by my second sister. The next set of people will be my friends. The loom scam continues like a factor tree after the split.
2. Ponzi Schemes cash in on new investors.
Ponzi schemes do not have starting capitals so for them to reap none existing investment, they need new people to come on board. In the diagram above, you can neither tell if I paid my 50.00 to someone neither can you tell if my sisters and my 4 friends paid to someone. As I said, we paid nothing to no one. This means we never had a starting capital but we are about to walk away with a hopping GH400.00 in a matter of days together. In total, we are about to make GH6400.00.
Let’s assume I have 2 whatsapp contacts and I fixed them in place of my sister’s name, I will be walking away with GH1200.00 from the current loom alone. After am gone, I start a new one with the same names, ready to dupe another set of people. Now the 8 people I scam believe in the scam because they paid. They will now go about to convince people to invest for two [Selase Ab2] reasons:
a. Because they have paid so they believe it’s a real investment
b. Because they need to cash in their money
3. The starters exit at an early stage.
The master minders of Ponzi schemes are always the first set of people to exit. Do you wonder why? It’s because they know it’s a scam. If it’s a legal business why will they want to fall out? Why don’t they remain in business to ensure their client’s investments are protected? But because it’s a Ponzi scheme, beginners are always in a hurry to get new investors so they can cash in and exit. They are very much aware that once the inflow of investors end, they will be exposed so they must exit as fast as their minds can take them.
4. The masterminds are never known
Who can tell me the very first people who started loom? This means everyone is a starter. You were meant to believe my sisters and I paid to an early group of loom. This is a claim you cannot verify. We do not have an office. You cannot sue us if you become the last person because you were brain washed to believe we paid to someone as well. The last set of people who will be paying to my 4 friends and the 8 people who paid to me will never know of me. After am gone, 2 sets of loom will be formed. That’s my 2 sisters. At every given point when someone cash in, 2 looms will be formed.
5. No Ponzi scheme is sustainable.
As you discovered in this article, i downloaded the chart and filled in with my sisters and friends, in the next few minutes after reading this article, you will be googling “Blessings Loom Chart” for a blank chart so you can also start as a mastermind. You will scam a lot more people if you decide not to use the names of your sisters and friends . This means you have to get the first 6 people to pay you but because the chart is not complete for it to split, you must wait and get paid by the rest 8 people who will come later. So now tell me if loom is an investment or a scam? It’s not even a form of “susu” as we were meant to believe. It’s a scam. A Ponzi scheme!
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