Loom Nigeria Is The New MMM ; 5 Reasons Why You Should Not Invest Your Money In Loom Written By : Oluwasegun David Fasasi
5 REASONS WHY YOU SHOULD RUN FROM NEW PYRAMID SCHEME LOOM
By Oluwasegun David Fasasi
According to Wikipedia, “a pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sales of products. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.”
There is a frenzy over the latest form of pyramid scheme called LOOM. And like the proverbial dog that will get lost because it failed to listen to the hunter’s whistle, people have begun to invest in the scheme massively, quickly forgetting the bitter experience that was left by MMM, Twinkas etc.
One inherent reason why people are investing in LOOM is greed. Humans tend to get greedy when opportunity to make fast money rears it’s head. And this time, the targeted losers are young people and the social media savvy.
Here are 5 reasons why you shouldn’t invest in LOOM :
1. UNREGISTERED INVESTMENT
Like all pyramid schemes, LOOM is not a registered investment. Not with the Corporate Affairs Commission (CAC), nor state regulators, which makes it an illegal business. And like all unregistered investments, anything can happen. And in an investment where there is really no sense of direction, investors are bound to lose money. For example, an operator could vanish, taking all the investment money and there would be nobody to hold responsible.
2. LOW EARNING, HIGH PAYMENT
If an investment is paying it’s investors more than what is coming into the investment, it would end up in bankruptcy. The idea of each investor using a ridiculously low sum of money to cash out a much larger sum is not going to be able to be sustained for long, thereby leading to it’s crash.
3. UNLICENSED SELLERS
Since LOOM is an unregistered investment, the sellers are equally illegal. Loom is even a more dangerous venture than MMM is. Unlike MMM that has Russian con man Sergei Mavrodi as it’s major promoter, loom does not have a major promoter, nor does it have a website. It is a social media based investment, where anyone could create a group on social media, get people to invest a lot of money, and then ultimately shut them out of the group.
4. MORE LOSERS THAN WINNERS
In pyramid schemes, there are usually more losers than winners. Definitely some people will make profit from the scheme, but from precedents, the number of losers always surpasses that of those who will gain.
5. PYRAMID SCHEMES ALWAYS CRASH
Just like the saying goes “If you fail to plan, you plan to fail”, LOOM is eventually going to crash. As with all other pyramid schemes that there have been, sooner or later, recruiting new members becomes a difficult task. And when there are no more new members, it prevents the latest investors from cashing out the sum stipulated by the rules of the scheme, which ultimately kills the investment. So LOOM is an investment bound to fail from the beginning.
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