Has MMM Crashed? Not yet….

Has MMM, the popular Peer to Peer platform crashed?

I think not, but this is the beginning of the end.

Like any pyramid scheme, MMM depends on new money to pay old money. However in Nigeria, during Christmas everybody needs cash, its a time of spending and consumption, not investment.

Many new “depositors” in the MMM scheme, invested during the year with the sole intention to earn “30%” , withdraw in December in time for Christmas and School fees. Every financial institution in Nigeria will see more withdrawals than deposits in December. MMM knew this, thus they offered a “Holiday Bonus of 20%” until January 1st 2017. in effect they were offering incentives to new “depositors”, to boost cash flow.

However MMM is unique, its promises 30% addition, but has no central account, fund or reserves. All “withdrawals” are funded by new “deposits”. The problem now is that demand for cash is so high the system cannot not cope, thus a temporary freeze, which is a practical but clearly  unsmart solution. MMM had effectively sowed doubt, and it will now find it harder to get new “depositors”…

Will MMM crash? yes eventually it will, the mathematics of 30% a month confirm it will…but for now its wounded….not dead

What is key is what will happen after the “great freeze” is over…will new “depositors” flow in? if they do, MMM survives.

Our advise remains the same, this is not an investment, and it should not be considered an investment. Its gambling, it’s a gamble that should the participants want to exit, there will be  new participant to take them out….


  1. Mmm is from the pit of hell, any genuine child of God investing in mmm is trading his or her soul to hell.

  2. Exactly my point also, by the time this ponzi scheme bounces back in January there will be problem. What will lead it to crash is that since what sustains the scheme is the help people provide, the number of people who will get help will be greater than those who will provide help. It’ll be hard for participants of MMM to stake their money because of what happened in December.

  3. Panic destroys confidence in a market.Now,there is a crisis of confidence which will make potential investors very weary of staking their funds.MMM is gasping for breath

  4. I am actually less optimistic than you are. You said, there is no central account so, I wonder how the “operators” of this Ponzi scheme are able to know in advance that an imbalance would occur and such a preemptive freeze would be needed.
    I think you give these people more credit than they deserve.
    What I think has happened is that new so called investment have been thinning out for a while and at some point the takers (payments falling due) were no longer finding givers (new payments) and in light of this, they came to the decision to “close shop”.

    Any freeze portends a liquidity crisis and whenever they “unfreeze” (if they ever do) there will be massive cash withdrawals.

    No one trusted MMM, the payouts was what people were after.

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