By AbdulKabir Olatunji
Nigerians and people from around the world that know about “Loom Circle” or “Fractal Mandala” are sharply divided by it -while one group are irritated by the idea and easily identify it as a Ponzi scheme, subscribers and supporters are adamant that it is one of the best things that has happened to them in terms of making money. However, with the experience of MMM, even some people that did not know what a Ponzi scheme is, should have known by now that it is a scam. Yet, people are rushing to join this new “Loom Circle” Ponzi that is by definition set-up to fail at the majority’s expense.
The following are my questions to the subscribers to Loom Circle Subscribers.
1. Where do you think the money you are promised through Loom Circle is coming from?
So basically, Loom is promising you an 8-times return on your business for doing absolutely nothing productive than getting new people into it as members. So, it does not matter whether it is 8 people you have to introduce or ultimately 64 people have to be added through the people you added to get the promised amount. What is essential is that you are inviting people into a scheme that will get thousands if not millions losing money.
2. Do you know what a Ponzi scheme is?
I have to ask this question because of those who defend Loom with the claim that they have made money from it. To be the clear, a minority will make money from Ponzi schemes being the early adopters that help to create the exponential growth. However, the latter subscribers are the ones that lose greatly. If you understand this, you will not present this argument as evidence for Loom not being a fraud.
3. Where did you get the money you invested in Loom from?
You could not use that money in any legitimate business?
I ask this question because many Ponzi scheme subscribers including loom behave as if there are no viable ways to make legitimate money.
4. Is it that you don’t understand that governments across the world are duty-bound not to allow a Ponzi scheme that has scammed people across the world operate freely within their countries?
This one is self-explanatory, people in the United States, Britain, Australia and elsewhere have lost money with loom. The Nigerian government is duty bound to act and I hope they act soon to curb this.
5. Explain how Loom is a revolutionary idea that commercial banking should be afraid of?
Some Loom subscribers are quick to tag banks as stealing from their customers while Loom Circle is the solution for the masses. Curiously enough, they pay into each other’s bank accounts; curious to say the least.
6. Do you understand that wealth is created based on the value you create not through this system operated by a few people to rob people of their money while leaving them in the lurch?
Let us say all of us joined Loom Circle, where would productive output come from?
7. Do You Understand that Your Uplines, Mentors, Guides or Whatever You Call them can Abandon You at any Time?
I am sure many people did not expect this to happen with MMM, yet it happened. Why do you think Loom will be any different?
8. Do you agree that as a promoter of the scheme, you are quite dubious because you are seeking to reap bountifully at the expense of others when the scheme crashes?
Note I wrote ‘when’ not ‘if’
9. Do you not worry that you could have a hand in the death or grievous harm happening to people who could lose money from Loom and become suicidal?
Many people committed suicide with MMM, some died silently, what makes you think this will be different?
10. Do you understand that you are effectively using time that you could use for productive activity to promote a questionable scheme at best?
If you understand that time lost is irrecoverable, why waste it?
Your answers and feedback are quite welcome.
Abdulkabir Olatunji is the Head of Strategy at Jarus & JAN Internet Group and an Associate Member of the Nigerian Institute of Management (AMNIM). His interests include writing, blogging, all-things-tech and analysis of current affairs and sports. You can follow him on LinkedIn and on Twitter @maclatunji