The struggle for survival continues... Most times, yes life can be so unfair, favouring only the brave. It's a survival of the fittest.
All humans need money to run their lives and businesses; the system have also been this way. People struggle to make ends meet, to survive, and to live better lives. In life, it is either you get rich, or you die trying.
In the process of making fast money, it is either you get scammed, or become the scammer. This have resulted in the inventions of new brilliantly crafted schemes designed to trick people in order to make money out of them: I am talking about ponzi and matrix schemes. Yes that pyramid scheme or helping platform people invest in these days. Let's us take a look on how they work.
What is a ponzi? Ponzi is a scheme that uses the money of first or older investors to pay newer investors, and vice versa. They promise an increment in capital by some percentage over a very short period.
The Claim: They may claim to be a trading platform, doing business with investors' funds, and paying them based on interest rates. Or in the case of cryptocurrency, they may claim to be a cloud mining solution selling hash rates, and profit is according to the amount of hash rate purchased by the investor. Wow! This is such a good idea and a nice concept. Let me get involved in this, and alas... you wake up one morning to see all your funds gone! Gone forever!
The truth, how they actually make profit: You might wonder why ponzis don't last? It is simply because the inventors or brains behind this scheme makes no profit from it, confused? It is all a set up plan. He tries to gain your trust to invest in the platform, and when he is fed up for not gaining anything from the platform, he closes it down, and walks away with your money. Examples of such schemes are: MMM, Twinkas, Auroramine, e.t.c.
Now you know the real motive behind such schemes. Having been warned, it will be a stupid move if you engage in such schemes. This leads us to the next trending scheme.
Matrix: A matrix is a scheme where money is paid by an investor to buy a position under an older investor, in return, he looks for new investors to invest under him to make his own profit. A matrix system is a pyramid system, operating on a format based on pascal triangle in mathematics.
1
1 1
1 2 1
1 3 3 1
1 4 6 4 1
1 5 10 10 5 1
1 6 15 20 15 6 1
1 7 21 35 35 21 7 1
- Pascal triangle.
How Matrices Work: Just like the pascal triangle being illustrated above, matrix systems start with the first investor, who looks for investors under him, in turn the newer investors also search for investors to be under them. It goes on and on like that till infinity.
How do they make profit?
Believe it or not, most matrices are ponzi schemes in disguise, here is why. Some matrix may involve you paying to an older investor, let's say you pay $50, and in return, investors after you will also pay you $50 each. Now notice that the inventor of the system isn't gaining any commission as nothing is been passed on to him. Makes me wonder if he does this for charity... but heck no! It's a well planned ponzi strategy to draw investors, and later steal their funds!
There is also a matrix system where you pay a token to the founders of the scheme as a way of generating profit for them. Well, I can say this type of matrix is legit, as it is based on networking. But over the years this system is known to collapse as a result of failure to get continuous downlines(investors). So in plain text, it is still not advisable to invest in such system(though it is a legitimate business), especially if you are not the social type, as you might find it difficult to get downlines.
A popular African saying says: “Money behaves like water, once it falls to the ground, it is difficult to get it back”.
For more info, you can comment below.
On this note I say: Invest Wisely!
Comments
Post a Comment