MMM Nigeria to crash – Fresh findings by NAIJ reveals that the money spinning Ponzi scheme Mavrodi Mundial Movement also known as MMM might crash between June-July 2017 – Some “experts” in Ponzi schemes who spoke with our reporter said the scheme might not last longer than July of 2017 following recent developments such as multiple registrations by participants by users within the scheme.
One of the reasons we started compiling this report is due to the fact that some MMM participants have now added fraudulent activities to the scheme, as they now upload fake evidence of payment.
Recently, it was reported that 66,000 Zimbabwean participants were affected when this pyramid scheme crashed.
However, the operators of MMM have began to move against fraudulent activities, as investment can no longer stay more than 30 days in the system.
As at press time, over 3 million Nigerians, including the learned and the illiterate, are participants of the money spinning Ponzi scheme.
With Nigeria sinking further into recession, youths and middle age adults have resorted to Ponzi schemes as a means of survival as it appears that the President Muhammadu Buhari-led federal government seems to be having a hard time battling with the economic decline. There also seems to be no end in sight to the recession.
How MMM works
Like all Ponzi schemes, MMM is none different as it does not have an underlying asset or enterprise upon which the investment is built, cash payout is sustained from contributions of investors who come in later.
MMM is a scheme where people matched funds to help each other. Each help provided comes with a guaranteed 30% interest or profit (as you may want to call it) in 30 days when the provider of the help requests for help too.
Simply put, MMM makes new helpers (participants) to transfer money (help) to other people who had provided help previously to earlier participants and the circle continues.
Also, an existing participant who is able to bring in a new member gets a referral bonus of 10% on every help the new participant offer. This, however, can only be enjoyed for the maximum of 8 times even if the existing participant is not investing.
Earlier participants, known as “Guilders” make more money from this scheme than new participants due to the large number of their down line – (people who came into the scheme through them, or those who they mentor/guide).