The human heart is made of stone, and as Nigerians, we have stubborn traits embedded in us that keep us repeating the same thing after being warned and punished severely.
The trend of Ponzi scheme didn’t start today, but from the days of MMM to CBEX now, the issue persists. The perpetrators present these schemes to us by rebranding and repackaging the same product, knowing that we’ll fall victim because of our greed and Ignorance.
The essence of ‘Do your Own Research (DYOR)’ in cryptocurrency and finance is to do thorough research before joining any project/business. It means taking time to analyse key details like price trends, whitepaper, project roadmap and authenticity of the venture before making any commitment or investment to avoid scams like CBEX.
DYOR is a weapon newbies and experts in the crypto or finance space should arm themselves with. DYOR helps reduce scam risks.
Benefits of DYOR
- It reduces the risk of getting scammed
- It broadens knowledge of a venture/project
- It empowers you to make informed decisions
- It helps you differentiate between fake and real projects
- It prevents you from making emotional decisions
- It helps you detect scam ventures early
The crash of the viral digital investment platform CryptoBank Exchange (CBEX) has left many Nigerians in sorrow, debt and confusion. Many investors lamented the large amounts poured into the platforms, and according to The PUNCH , the total amount lost to CBEX stands at N1.3 trillion – that’s an astronomical figure. This affected both international and Nigerian investors.
The reports also put the volume of stolen investors’ funds at $847 million, which may likely increase. Although the Economic and Financial Crimes Commission (EFCC) and other security agencies have launched a probe. Will the money be recovered? I doubt so.
CBEX has rendered many Nigerians penniless and debt-stricken, and to my surprise, this affected commercial drivers, motorcyclists, pepper sellers and the like.
What is Ponzi scheme and how did it originate?
A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. The Ponzi scheme was named after a man called Charles Ponzi, an Italian charlatan and con artist who operated in the United States and Canada.
Ponzi scheme organisers often promise to invest your money and generate high returns with little or no risk
According to Investopedia, in 1920, Charles Ponzi became a millionaire by persuading tens of thousands of clients to invest their money in a nonexistent venture for a guaranteed high return.
Why do we keep falling victim to such unscrupulous acts, and why are we being their target? The reason is not far-fetched. It is our greed and lack of awareness to earn double our investment that drives such trends. The perpetrators behind it are so wise that they conduct market surveys and utilise people’s ignorance and gullibility against them, and the current economic disability is not helping matters, which, as a fact, will trigger any person to invest in it.
The list of Ponzi schemes that have made away with Nigerians’ money so far.
MMM Nigeria – 2016
Ultimate Cycler – 2016
Get Help Worldwide (GHW) – 2016
Twinkas – 2016
Icharity Club – 2016
Crowd Rising – 2016
Claritta – 2016
Help2Get – 2016
Loopers Club – 2016
Givers Forum – 2016
NNN Nigeria – 2017
MMM Cooperation – 2017
GCCH (Global Crediting Cooperative Hub) – 2017
Money Riot – 2017
RevoMoney – 2017
SwissGolden (Nigeria version) – 2017
NNU (Nigeria News Update) – 2017
Peer2Peer Donation – 2017
Twinkas Reloaded – 2017
Donation Hub – 2017
MyBonus – 2017
ZarFund – 2017
Bitclub Advantage – 2018
Million Money – 2018
Helping Hands International – 2018
DGSOUK – 2018
Pennywise – 2018
Loom – 2019
Crowd1 – 2019
Lion’s Share – 2020
InksNation – 2020
Baraza Multipurpose Cooperative – 2020
Racksterli – 2020
86FB (aka 86Z) – 2021
Eagle Cooperative – 2021
Royal Q (Nigerian scam version) – 2021
FINAFRICA – 2021
Ovaioza Farm Produce Storage – 2022
QNet (Nigeria) – 2022
Afriq Arbitrage System (AAS) – 2022
MBA Forex – 2022
Chinmark Group – 2022
Inksledger – 2022
Axim Exchange – 2022
Compoundly – 2024
CALA (Cala Finance) – 2023
6Dollars Investment – 2023
Sidra Investment (cloned scam version) – 2024
WealthBuddy – 2024
BitFinance Global – 2025
CBEX-2025
Signs to know a Ponzi scheme
1. Restricted access to your investment account
2. Difficulties in withdrawing money
3. Asking for a certain amount to withdraw your earned balance
4. Being asked to recruit or refer others to upgrade to the next level
5. Investments are not registered with the SEC
6. Sellers are not licensed to sell investment products
Having worked on several crypto projects, I’ve seen what goes behind the scene. Developers, moderators, and community managers won’t tell you the truth. Why? Because they’re getting paid for the service they rendered.
In conclusion, the cryptocurrency and finance space can be unpredictable and risky. These platforms often rebrand and return in new forms, and if you’re a newbie with no knowledge of the space, there’s a high chance of losing your entire investment. So, tread carefully, avoid greed, and always DYOR.
