While many Ghanaians are still finding it difficult to overcome the heartbreak that hit them and their family members by Menzgold after millions of cedis were lost to the scheme, Ghanaians are turning their attention towards Loom, another scheme that promises astonishing returns on investment.
According to the BBC, It’s the latest in several get-rich-quick schemes which target young people under 30.
Despite the loss of billions to that scheme and many of its type, Loom Money is starting to gain a widespread following among Ghanaians in the online community.
What is Loom? How does it work?
“LOOM’ is a money-making venture that has been, digitally, traveling around the world for some time now. To put it short: one is invited, usually by a friend or relative, to join a simple, circular, money-making system . Entering the system is as simple as paying a small amount of money, GH₵50 in the case of Ghanaian youth. All you need to start “the game” is a Whatsapp account, some patience and — this is key — you are asked and expected to invite at least 2 or more of your beloved friends, family, and acquaintances. The more people you manage to add to the circle, the quicker the movement of it, and thus, the easier it will be for you to make your chunk of easy money.
Now I do not want to go all out into making the scheme look so lucrative so that Ghanaians will stubbornly overlook the negatives as they outweigh the positives. With the way Loom operates, it’s clear to see that it’s not a sustainable investment scheme and that people will inevitably lose their money in the system. When investors start to dry up, groups will take longer to fill up, and newer recruits will lose their investment without any payouts. This will only be averted if there’s an unending supply of new investors, an impossible feat.
Loom in Ghana is working now because just like other pyramids schemes, earlier investors are being paid with monies taken from other recent investors. Once that system slows down, Ghanaians will be left in tears again.
Read more of what the BBC wrote on Loom here: https://www.bbc.com/news/uk-scotland-47749585