Looks like this (new) Ethereum pyramid scheme is gaining grounds in Nigeria

Within the space of two weeks, two people reached out, asking me to join this new “money-making scheme” that involves buying Ethereum for as low as ₦5,000. The way it works, as they explained, is that you’re expected to invest 5k, and then invite 2 people to enable you to rise to the “next level” and earn more returns on your investment. Sounds like a pyramid scheme right? They swear it isn’t because “Ethereum is real”.

Apparently, this is a thing even outside Nigeria. A quick Twitter search revealed that there are two popular schemes that use this model; Forsage and Million Money. I got a document (ppt) on Million Money from one of my contacts.

Here are two random tweets about it:

Looks like we have another MMM on our hands.

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My grand mother back then ( may her soul rest in peace) warned my dad and everyone she knew to desist and refrain from pyramid scheme. Nobody listened to her. The loss my family incurred was massive.
A lot of people lost property worth millions.
Rich men became poor over night.
The thing about this kind of scheme is that they make it sound real and tempting too.
But then its all in a bid to steal peoples hard earned money eventually.
Its a NO NO for me.

I’ve been told this too. A few things really make me curious:

  1. The modification they’ve done to the regular Ponzi scheme (there’s some sort of feedback mechanism to delay the inevitable end of all pyramid schemes), I would like to know how that works

  2. Why Nigerians haven’t tried to replicate it. Is it because crypto developers aren’t that many?

I’ve been trying to understand it myself. Especially with this one where I could just easily use popular apps like Luno and BuyCoins to buy Ethereum for as low as N500. It’ll be interesting to see how long this one would last.

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People have been trained to sniff out Ponzi by asking “what do they produce”? And that’s why:
-MMM said they were a social help thing
-Some say they provide groceries or health products or all that.

In my head, they’re just using a smorgasbord of buzzwords to make you get on board: buy, crypto, cheap, profit.

I just even hope they’re actually buying ETH for people.

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