MMM Global: The Naked Truth

If you haven't hear about MMM yet, you can be considered not to be from this planet or just not bothered to know what it is all about.

Like that of Ebola outbreak in the past, MMM is even gaining more publicity and much talked about in almost every household in Nigeria.

What is MMM Global?

The original MMM was set up by Sergey Mavrodi in 1989 and transformed into a Ponzi scheme in around 1994, primarily founded in Russia. That original version of MMM resulted in Mavrodi, a former Russian parliamentarian, being jailed for fraud for running it. The current MMM Bitcoin version emerged in around 2011 following Mavrodi’s release from prison, and follows the same Ponzi structure as the original.

What is a Ponzi scheme?

A Ponzi scheme is an illegal investment scheme where the person or organization running it pays returns to existing investors from capital paid into it by new investors, rather than profit actually earned by the company itself.

Typically companies running such schemes offer higher than usual profits. Variations include the High Yield Investment Program (HYIP) which MMM Global falls under, in that it offers particularly high (even for Ponzi scheme) returns, or as the name suggests, a high yield.

So now you know there are winners and losers in a Ponzi scheme. Some people may share with you that they made tonnes of money with MMM Global, and some may tell you that it is a total scam.

Generally, it is the “earliest batch” of “investors” who will make the money One thing that I am certain of is that MMM Global is not an investment firm, rather it is more like a Cash Gifting racket. Think about it, if MMM Global does not invest the money elsewhere, how are they able to support the 30% return every month? Whatever money that is poured into the MMM Global system stays in the pool, and it does not grow. The only way to grow it is if there are new “investors” pouring money into the system.

The big question goes thus; Is MMM real or fake?

  

Image credit: Nairaland

There has been a lot of controversies as to how genuine or what makes MMM a legal scheme to venture into. In a recent development; The Central Bank of Nigeria as warned Nigerians to desist from investing into MMM. Following the warning about the scheme which promises 30% return on investment is not regulated and bound to crash soon. The Minister of Solid Minerals and Steel Development, Dr. Kayode Fayemi, gave the warning and dissociated himself from the MMM, saying he has nothing to do with it or any other online financial aid community, projects or contracts.
Also speaking during a mentoring program for students, of Government Secondary School, CBN Head of consumer protection Sueja Kassim warned the students against investing in MMM which he described a wonder bank.

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