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.

MMM Nigeria ponzi pyramid scheme image

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.



Giovanni is obsessed with the social-economic development of his beloved Africa and inspiring people to think for themselves logically and rationally. He started Thescripton as a teenager because he felt it was one of his best ways to contribute to making society better by discussing critical social topics in an educative manner. But as his grew older he realised he change should begin from an individual level. He’s the founder of Larnedu and a few other online communities that serve thousands of people around the world. He’s open to constructive criticism and learning from others.

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