Ponzi Schemes or pyramids have their own advantages. One can easily take advantage of the system but remember, the brains behind the system can never lose. And don’t be lured by the huge interest promised (ie about 800 percent in less than a month).
Before joining such schemes these are the vital points to note:
1. LOOM money has no central account/regulating institution.
Loom money is not regulated by any institution and hence, it’s very difficult to trace owners of the said scheme in case of any challenge.
2. Who did the first particpants make payments to?
Have you ever asked yourself this question? These people made payment to the owners of the schemes. So the idea is, these people (initial participants) will make their monies from those who join.
3. Sustainability of the Scheme
The sustainability of this scheme is dependent on the availability and willingness of people to join. The moment it reaches its peak, that’s the end of the scheme.
4. Robbing Peter to pay Paul System
In this pyramid model of ponzi, it’s just a system of transferring monies from one person to another. Funds aren’t used for any investment engagement to earn interest or profit.
5. Who loses?
The last person to join is very vulnerable. His fate is determined by the next person to join. In a case where no one is willing join again, the last persons who joined loses.