Why MMM Nigeria Is A Ponzi And Pyramid Scheme
The terms “Ponzi scheme” and “pyramid scheme” are widely used interchangeably when referring to MMM, but there’s a difference between them.
Similarity between a Ponzi scheme and pyramid scheme
Ponzi schemes and pyramid schemes both pay existing investors with contributions of new investors.
The difference between a Ponzi and Pyramid Scheme
Ponzi scheme participants are not required to be actively involved in the scheme.
Pyramid schemes require participants to be more active in bringing new participants to contribute to the scheme.
Why MMM Nigeria is a Ponzi and Pyramid scheme
While it isn’t a requirement for MMM Nigeria members to bring in new signups, it does encourage them to do so by offering rewards.
I’ve seen people who were paid 5% extra on the money they receieved because they made a video that said “MMM pays”.
Guiders” get a 10% cut of the new members’ investment, which encourages them to bring in more people to join MMM.
That’s what keeps the system going…until it crashes.