I just want to educate some writers, or Individual who think they know a Ponzi Scheme business model. Unfortunately, people just ascribe the word "Ponzi scheme" to anything.

Here is the Defination of Ponzi Scheme

A Ponzi scheme (/ˈpɒn.zi/; also a Ponzi game)[1] is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.

My question is, how does this Definition relate to MMM?

Sincerely, I didn't invest my dime in MMM because I never believed in it from the outset. The frozen of GH in the program made a lot of people tagged it Ponzi Scheme. Whereas there is no coloration.

For a something to be tagged Ponzi scheme, it must be a business or investement which promise an unreasonable huge return on money invested. E.g. Banking, investment company, Insurance, capital market etc.

MMM is none of this, going through their website I couldn't find where it was written as an investment organization. It was boldly written that Is a Community of people helping each other. You have to provide help to someone before another person can provide help to u. Just that when u are Getting your own help, 30% of of the amount you provided as help will be add to you. Maybe for compensation, or because u have help others too in time of need.

The only thing is that MMM is not register in the countries where it operates, which is not a crime because BITCOIN is also not register anywhere in the world and people had benefited from it.

Chuddy made money from it? Of course he will because he was part of those who propagated it. Have you forgotten is an Online stuff which million of dollar invested on software, programmes, hosting, web address etc. Also, Staffs and gadget.

Someone somewhere is making money from BITCOIN.

Nobody was forced to join MMM. It was willingly. Finally, in MMM, u can not loose money because it is not an investment but you gave out money which a good heart helping someone.

Just wondering, why are you taking it personal?
Are you Mavrodi?

Silence they say, silence is the best answer to an Ode. I wish great Mavrodians can apply silence to all the hungry bloggers and ignorant Odes bad-mouthing MMM. That would be great!

Hiploko:
Silence they say, is the best answer to an Ode. I wish great Mavrodians can apply silence to all the hungry bloggers and ignorant Odes bad-mouthing MMM. That would be great!

Maybe that would have been the best response. However, there is need to respond as their sole objective is to cause panic, which will scare people away

However, it also reveals much about Nigeria journalist, they are junk and never investigate. They just look for any trending topic to make money from it.

No wonder PMB challenge them to carry out investigative journalism

Bro, any investment or business package that involves paying earlier participants with later participants money is basically a pyramid scheme or ponzi scheme as the case may be.

dayowunmi:
Bro, any investment or business package that involves paying earlier participants with later participants money is basically a pyramid scheme or ponzi scheme as the case may be.

But MMM is not an investment or business it was clearly stated on MMM site

enny09:

But MMM is not an investment or business it was clearly stated on MMM site

Nah, doesn't matter. Anything u invest into for profit is an investment. U put in money to mmm and u expect profit, it's automatically an investment.

dayowunmi:

Nah, doesn't matter. Anything u invest into for profit is an investment. U put in money to mmm and u expect profit, it's automatically an investment.

U are confusing yourself....in MMM any money put into it is considered as help not investment. Likewise, any money u get is considered giving help to u too.

Note: In MMM, the fact that u put money there does guarantee you will get it back because it is considered a gift not investment. This is boldly written on the site.

akeensbussy:


U are confusing yourself....in MMM any money put into it is considered as help not investment. Likewise, any money u get is considered giving help to u too.

Note: In MMM, the fact that u put money there does guarantee you will get it back because it is considered a gift not investment. This is boldly written on the site.

MMM is a investment. You have money, u put the money into scheme or anything that promises u returns with interest is investment. That mmm use the term help doesn't mean its not investment. Gosh can't believe this is even an issue! Some countries refer to the round leather game as soccer while some countries call it football at the end of the day it's still same thing, it's a matter of antonyms.

akeensbussy:


U are confusing yourself....in MMM any money put into it is considered as help not investment. Likewise, any money u get is considered giving help to u too.

Note: In MMM, the fact that u put money there does guarantee you will get it back because it is considered a gift not investment. This is boldly written on the site.

You are the one who is confused.

The purpose of providing "help" as you guys call it is for the sole aim of getting reciprocal help...this intention alone qualifies it to be categorised as an investment.

In the final analysis it all boils down to semantics therefore MMM is a psuedo investment and thus a Ponzi scheme because it's aim is to pay early investors with the contributions of later investors!

akeensbussy:
For a something to be tagged Ponzi scheme, it must be a business or investment which promise an unreasonable huge return on money invested. E.g. Banking, investment company, Insurance, capital market etc.

MMM promises 30% per month, which is equivalent to 2230% per annum. That's clearly an unreasonably huge return on money invested. On top of this they offer the Referrer's bonus, Guider's bonus, bonus for testimonials, etc. It's clearly an unsustainable scheme.

MMM is none of this, going through their website, I couldn't find where it was written as an investment organization

Any scheme that accepts money from people with the expectation that the money will grow and they will collect a greater amount later is an investment scheme, whether the website admits it or not. And if the returns are paid for by new investments, it's a Ponzi scheme.

Finally, in MMM you cannot lose money because ...

Tell that to the people who are crying and threatening to commit suicide; those who borrowed money to "provide help" to Chuddy and co.

The only thing different about MMM is the non-centralization. This just makes it a peer-to-peer ponzi scheme, which can't be shut down easily.

Kobicove:


You are the one who is confused.

The purpose of providing "help" as you guys call it is for the sole aim of getting reciprocal help...this intention alone qualifies it to be categorised as an investment.

In the final analysis it all boils down to semantics therefore MMM is a psuedo investment and thus a Ponzi scheme because it's aim is to pay early investors with the contributions of later investors!

Excellent points bro!

@akeensbussy

I have absolutely nothing against those that have put their money into MMM as I also considered it in the early stages of the scheme. I only find it preposterous that you are carried away by semantics and funny acronyms like GH and PH that never existed prior to this scheme.

Everyone who provides help, does so expecting a 30% yield. In order words no none actually cares about whoever they are sending funds to, everyone is driven by either greed or the mere fact that they cant find any investment with such high ROI.

The site tells participants who care enough to go through its disclaimer, that its not an investment, yet every participant expects their returns at the end of 30 days, automatically making it an investment. It also states there are no securities, no guarantees and participants can lose their funds without reason or explanation.

The fact that the scheme doesn't fit the generic definition of a ponzi scheme or by pointing out the risk involved doesn't mean it isn't. The model is the same as always, to pay existing participants with the funds of new participants.

Its exactly the same as any HYIP or Ponzi Scheme you might have heard of in the past. The only difference is there is a disclaimer informing participants of the impending risks involved.

Lets be honest with ourselves for once, we are all Nigerians, how many people actually joined MMM to provide help with a good heart of helping someone like you said? No one is actually ready to lose money to it, which at the end of the day is inevitable.

kinglekan:


Excellent points bro!

@akeensbussy

I have absolutely nothing against those that have put their money into MMM as I also considered it in the early stages of the scheme. I only find it preposterous that you are carried away by semantics and funny acronyms like GH and PH that never existed prior to this scheme.

Everyone who provides help, does so expecting a 30% yield. In order words no none actually cares about whoever they are sending funds to, everyone is driven by either greed or the mere fact that they cant find any investment with such high ROI.

The site tells participants who care enough to go through its disclaimer, that its not an investment, yet every participant expects their returns at the end of 30 days, automatically making it an investment. It also states there are no securities, no guarantees and participants can lose their funds without reason or explanation.

The fact that the scheme doesn't fit the generic definition of a ponzi scheme or by pointing out the risk involved doesn't mean it isn't. The model is the same as always, to pay existing participants with the funds of new participants.

Its exactly the same as any HYIP or Ponzi Scheme you might have heard of in the past. The only difference is there is a disclaimer informing participants of the impending risks involved.

Lets be honest with ourselves for once, we are all Nigerians, how many people actually joined MMM to provide help with a good heart of helping someone like you said? No one is actually ready to lose money to it, which at the end of the day is inevitable.

Well that is the vision and mission of the MMM foundation. To help and seek for help. It is a Community of people helping each other.