According to Daily Mail, ‘the scheme has surfaced online all over the world, with names such as ‘loom circle’, ‘fractal mandala’ and ‘blessing loom’.
NaijaChoice reports that several Nigerians are taking chances with the new Ponzi scheme Loom for more participation, especially on WhatsApp.
How It Works
The scheme which was first reported in the UK, then by an Australian media, ABC News (Australian Broadcasting Corporation) as a scam after it had gone viral in Australia, commenced in Nigeria recently.
The first step of the process is being invited to join a WhatsApp group chat, usually by a friend or relative. Then you are asked to ‘invest’ N1,000, N2,000 or N13,000 with a promise that you will make eight times the amount back once you recruit new entrants.
After you have paid in the money, you are asked to invite at least one person to join the system.
There are four levels in Loom Nigeria – Purple, Blue, Orange and Red.
Each time eight people join the loom, the person in the centre (Red) will get the target amount and leave the group.
The loom will then split into two groups. The top half and the bottom half become the new looms and everyone moves into the next level (Purple Level – into Blue Level – Into Orange Level) and the cycle begins again.
The more people you manage to add to the circle, the quicker the movement of it, and thus, the easier it will be for you to make your chunk of ‘easy money’.
The basics are that you get eight times the amount you “invest.” If you invest N1,000, you get N8,000; if you invest N2,000, you get N16,000; and if you invest N13,000 you will get N104,000
“I joined the group on Saturday and I cashed out N16,000 on Sunday, Loom is real,” said Rose, a phone outlet attendant.
She said she is presently investing for a friend of hers. Once she cashes that out, she will do another round for herself again.
Another benefactor, Gbenga Ojo, said he joined the group on Saturday with N1000 and cashed N8000 out that same Saturday.
“I have presently invested N2000 in three different groups hoping to cash out soon,
“Even if it crashes like MMM, I know I did not lose anything, “he said.
While some Nigerians are being sceptical of joining the money doubling train, some are sure they will not because of their past experience with various Ponzi like MMM, Twinkas, Charity, Zar Fund, Ultimate Cycler, Get Help Fund amongst others.
Mrs Odunayo, a government school teacher, said: “even though I didn’t lose more than one thousand in MMM, I don’t think I can do any other Ponzi.”
She said even if she would do, she would not invest more than a thousand Naira
Meanwhile, Felicia Happy, a police officer, said she can never invest her hard earned money in any Ponzi scheme.
“ I cannot invest in any of these Ponzi. Even when MMM was thriving, I did not think it twice, because I believe the day I put my money that is the day it will crash.”