A new sensation that is allegedly a money making gold mine is making the rounds in Ghana.
What is Loom Money?
Loom Money made its way through the United Kingdom and Australia before making its way into Ghana’s social media ecosystem.
Users are asked to invest GHc 50 to enter the scheme, with assurances that the investment will return 8 times the original investment.
However, there is a caveat.
To get the return on your investment, you’ll need to recruit others into the scheme as quickly as possible.
The system works by presenting a four-tiered pyramid (hint hint), each tier is coded with a specific color, purple, blue, orange, and red.
The members of the pyramid are arranged with 8 people on the lowest tier (purple), 4 on the next tier (blue_, 2 on the second-highest tier (orange) and one person at the top of the pyramid (red).
When the group is full, the top tiered member receives the entire return, invests GHc 50.00 and is knocked back to the purple tier.
Then the Loom group is split up and the top and bottom teams are entered into new schemes and moved up a tier.
Is it a scam?
Unfortunately, the whole situation with Loom Money is a little more than suspect.
Like a classic pyramid scam, it requires the participants, malicious and well-intentioned, to recruit as many people as possible.
The payout for the Loom comes out from all the gathered contributions. This implies that there is not a single external investment just money switching hands till some one just ‘earns’ the payout and takes off with it
It’s best to just avoid the Loom service as much as posible