Loom ponzi scheme.
Lemme shake the table small.
HOW DOES LOOM WORK? (Adapted from someone)
Loom is a pyramid/Ponzi scheme which like MMM takes money off several persons to pay one person. So let me explain;
1k to get 8k.
5k to get 40k.
13k to get 104k.
All the promised amounts can be divided equally among 8 persons so a loom group is 8 persons. When a group is created and you are invited to loom, 7 people pay the owner of the group 13k each which would give 91k and since they’re assuming that he also put 13k, they believe he has cashed out 104k. His looming is over. He goes off to create another group.
But how will those that paid him get their own money? The second person in line to get paid enters the center of the loom. But the other 6 people cannot pay another 13k to him each right? So they have to tell people to join their loom – REFERRALS.
So for the second person to be paid, 8 new members have to join that loom, when the second person is paid, the 3rd member has to also wait for 8 different people to pay him.
Now after the 3rd person gets paid, there are 5 other people in the original group that still need to be paid, the 8 people who paid the 2nd person also need to be paid, the 8 people that will pay the 3rd person will also want to be paid. That’s a total of 21 people that need to be paid. Each of the 21 persons need 8 people each to pay them for them to cash out. That’s a financial stream connecting 168 people. It is not sustainable.
Loom is a financial fraud that favors only the first person to create the group. Once he gets paid, you have to dwell on referrals, and the only assurance these referrals have is that it will soon be their turn to cash out, who will eventually pay them???
Loom is worse than MMM. The fraud is perpetrated not by a website but by your friends and associates, they know that they have lost money so they need you to join so you would be the one to pay them the money they paid someone else. So when you hear them say LOOM PAYS, I Just Cashed Out In 2Hours just know that’s a 419 story to make you join so they can truly Cash out & Zoom with your Money.
Meanwhile i know two persons still waiting to cash out since 2weeks, any who “cashed out” as they usually call it leaves the group.