“The Mavrodi Mundial Movement contrary to popular opinion is NOT an investment, it is strictly a money doubling scheme. Even the promoters of the scheme have stated it severally in public fora and on their website that MMM is not an INVESTMENT scheme.
“For your readers who may not understand, Ponzi schemes are pseudo-investment schemes that promises returns on 'investments' without engaging in productive or commercial activities. Promoters of such schemes only pay 'investors' with funds from other 'investors'.”
He says the scheme has no effect on Nigeria's economy as it adds nothing to the country's declining GDP
“as there is no productive activities actually taking place.” “So MMM is a money doubling scheme that pays old 'investors' with new 'investors' money, like a wealth redistribution scheme.” He said MMM is not here to stay.
“If you remember, a similar scheme has surfaced few years back between 2007 and 2009. It all crashed when there where no NEW entrants into the scheme.
“So like a Ponzi schemes, MMM will definitely run into problem when there are no new sign on. Those who reap the benefit of schemes like MMM are those who are on top of the leader, or who joined early. “The problem is, when such schemes become so large, the tendency for default will be very high, thus making new entrants lose confidence in the scheme when defaults start happening.
“If the funds generated from such schemes are actually used for productive activities that bring real incomes injected into such schemes, maybe it would have been successful. “That is why Ponzi schemes like forever living products etc that actually sell real products are still in existence. Though their business model could be faulty, it still looks sustainable in the long run.”
Asked if the system would not sustainable considering the huge population Nigeria has, Mr Ileowo says
“Population has nothing to do with sustainability of Ponzi schemes. In fact, it could be the undoing of such schemes” adding that there is no way it can be controlled and prevented from crashing. “It will definitely give since no real productive activity. Nothing sustains it,” he opined.