What makes Ponzi schemes like 86fb and MMM so successful in Nigeria

Ponzi schemes are fraudulent investment operations that pay returns to existing investors from funds contributed by new investors rather than the profit earned by the scheme's individual or organization. They are named after Charles Ponzi, who became famous for using the technique in the early twentieth century. Ponzi schemes have grown very common in Nigeria, with 86fb and MMM being two instances that have received much attention. This post will look at the elements that have contributed to the success of these scams in Nigeria and the risks they may represent to naive investors.

What is 86fb

86Fb known as 86Fb Football is a Ponzi Investment platform that says it concentrates on football and collaborates with William Hill, a major international online casino with headquarters in London, England, has just crashed.

This occurs when several well-known Ponzi schemes have just failed in Nigeria. It has also been revealed that the platform, which is owned by City Football Group and is situated in Abu Dhabi, is not owned by the business that owns Manchester City Football Club in England. 

In addition, 86fb requires 86fb football login where you can make and receive payment from flutterwave merchants. You'll also need the 86fb app download for 86fb login.

What is MMM

MMM stands for "Mavrodi Mondial Moneybox," a Ponzi scam that operates like 86Fb football. It was launched by Sergei Mavrodi in the 1990s in Russia. The hoax was promoted as a "social, financial network," with the premise that members could make money by helping others, and it guaranteed investors large returns. The fraudulence of the scam caused its demise in 1997.

MMM later came to Nigeria in November 2015 primarily targeted at unemployed people. After working in Nigeria for a year, MMM said that all member accounts will be frozen leaving many investors with huge financial losses.

What makes Ponzi schemes so successful in Nigeria

Ponzi schemes like 86FB and MMM were successful in Nigeria for several reasons. 

• One reason is a lack of financial literacy and education, which can make it difficult for individuals to identify and avoid fraudulent investment opportunities. 

• High poverty and unemployment rates in the country can make people more willing to invest in high-return, low-risk schemes, even if they seem too good to be true.

• Another reason is that Ponzi schemes often tap into people's social networks and trust. The creators of these schemes recruit friends, family, and acquaintances to invest, which creates the illusion of credibility. The trust and recommendation of a person you know can make it more likely for someone to invest.

• Finally, Nigeria's lack of regulations and enforcement of financial crimes also makes it easier for Ponzi schemes to operate without getting caught.

It is important to be aware of these issues and cautious when considering any investment opportunity, especially if it seems too good to be true. It is also important to research and verifies any investment advisor's credentials before making a decision.

Conclusion

Ponzi schemes are fraudulent investment schemes where profits made by the operator are not used to pay returns to current investors but rather new investors' contributions. 86Fb football and MMM are two major Ponzi schemes that affected Nigerians. They frequently offer substantial profits with low risk, which may appeal to investors. These scams, nevertheless, are unstable and fail, leaving many participants with significant financial losses. Many people turned to Ponzi schemes due to lack of jobs in Nigeria, they pumped their life saving into what they don't know. As a result, they are left with nothing.