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New Ponzi Scheme Alert: Ozone Coin! And Nigerians are lapping it up!

You’d imagine MMM taught Nigerians a big lesson about Ponzis but apparently there’s a new Ponzi Scheme in Nigeria at the moment called Ozone Coin.

Now for those who don’t know, a Ponzi Scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.

In simple English, A ponzi Scheme is a system where Emeka brings money to the Operator and Tunde is paid that Emeka’s money then Emeka then gets Paid when a new person, Hassan pays. So, the money being paid is not as a result of investments but essentially being paid other people’s money.

Problem with this is that people that enter early, make their money and the later people get burnt because human beings that can sign up are not endless.

And it seems Nigerians haven’t learned anything from the MMM fiasco as this new Ponzi Scheme at the time of reporting is the number one twitter trending topic in Lagos, Nigeria.

The weird thing is some of the promoters accept it’s a Ponzi Scheme but are promoting it regardless. Wow!

They promise a 100% profit on your investment in a week and apparently from their website you start out wih ten thousand naira.

Their official handle it would seem:

Please the Central Bank of Nigeria seriously warns to stay away from schemes such as this. Also, if for nothing else please remember it was reported that three million Nigerians lost eighteen billion naira in MMM.