Last year I made a video stating how it’s been almost 10 years since MMM left a lot of Nigerians high and dry. The funny thing about MMM was that a lot of the people who invested in it knew what it was – a scam. They only hoped to pull out before it all came crashing down.
Unfortunately for them, greed is a powerful emotion. They kept going and didn’t know when to stop.
The recent news about CBex, a digital currency trading platform that was offering 100% in 30 days ROI (Return on Investment) is no different.
First, they tried to gain authenticity by their choice of name – CBEX – mimicking China Beijing Equity Exchange, a legal and government-recognised entity in China. Their Wikipedia page is still available. Perhaps, part of their marketing included being an arm of this platform in Nigeria.
To further prove their legitimacy, they had physical offices and staff. Your mind will be telling you you have someone to hold when stuff goes left. They even claimed to have been in existence since 2015.
What’s there to be scared of?
Turns out there was plenty!
For a platform that trades currencies, they had no legal licence to operate in Nigeria.
Their ridiculous ROI is standard scam tactics. One would think this is common sense by now. No legitimate company will guarantee such a high return on investment without significant risks. Even crypto returns are not guaranteed.
If it is guaranteed, it’s manufactured and the manufacturers can pull the rug anytime.
There were other scam markers like overly incentivised referrals. Bring 10-20 people to collect this amount.
Yes, it’s normal for organisations to have referral programmes but when the referral programme is looking like it’s the product, start seeing blood!
These people were so heartless to demand more from people whose funds were already locked. They demanded up to 10% of their funds for “verification”, which was another form of extra milking.
Living in a country like Nigeria where the government does not care about it’s citizens or it’s responsibilities, O.Y.O. (on your own) is a norm.
Just as we generate our own electricity, bore holes for our water supply, looking after our wealth is our personal responsibility. The constituted authorities couldn’t care less if they tried.
Even as I write this, I know another Ponzi scheme is already in the works and many people will fall for it. Same people who believed that MMM was back.
Watch my Psychology of Investment video if you want to get better at investment.
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