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Bless you, and your so called "Blessing Loom"
Do you have $100 to pay your friend with the PROMISE to make $800 in return? No risk, just reward!!! Sounds pretty fabulous... doesn't it?!
At a time when people are at arguably at their most vulnerable, the latest round of a Ponzi scheme is here to stir up the scene.
(So, I may be a few days late to the game here, since it does seem that the majority of these "loops" have closed and decided to stay quiet... but I still wanted to share my thoughts on this topic.)
Let's review today's current state of events for some context:
It is 2020, we are in the middle of a Global Pandemic. Small business, Music Venues, Entrepreneurs, and Individuals are struggling to make ends meet. Families are having difficulty to pay the bills. Our government has granted citizens a $1,200 stimulus check to help stimulate the broken economy and, to provide relief for individuals due to stay at home orders to slow the spread of Covid-19
This money is intended to re-activate the economy, pay bills that otherwise wouldnât be paid, stay on top of finances & feed your family dinner.
But that would be too simple, wouldn't it?
Now I know I am going to offend some people here. So I am going to try and tread lightly, but I think a really important thing that needs to be asked in this case: "is your gifting circle actually a pyramid scheme" â and I mean seriously ask yourself, donât just dance around it.. "THiS game is a CIRCLE DUH tHiS AiNt nO PyRaMiD."
The purpose of this article is to encourage you to step back from your quick money-making endeavor, and to first understand the definition of a pyramid scheme. Once you understand, it is my belief that you would easily keep your distance from these "blessing looms."
So what is a pyramid scheme? A quick google search will gain you this definition:
Pyramid Scheme: N. a form of investment (illegal in the US and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones
And a little deeper look on Investor.gov will state:
In the classic "pyramid" scheme, participants attempt to make money solely by recruiting new participants, usually where:
So generally speaking, and to make it as "Pyramid Schemes for Dummies" as I possibly can: your blessing "circle" - despite the fact that it is not *actually* shaped like a pyramid - is still a pyramid scheme.
Every bullet that I mentioned above describes these circles popping up. "Pay $100 and get $800 back FAST! All you have to do is get 8 people below you!" There is no product being sold, a promise for a quick return, and the prime emphasis to succeed is to get other "friends" to join you on your money-making journey.
And lastly, and perhaps most important, at some point it just impossible to sustain. At some point there is inevitably going to be a number of people who cannot successfully the people below them to ensure they earn their promised $800.
I have tried to find a clear example of a person who has recently admitted to being scammed by this "blessing circle" and I have not had much luck. (Which is not surprising that people wouldn't want to reveal themselves in that way.)
But there are countless articles being shared from officials in states all around the Country, California, North Carolina, Texas, Connecticut, Virginia, Utah, Arkansas, all warning citizens to stay away.
And of course, there are even more examples of cases from the past, because remember this isn't new. Here is an article from BBC last month. Here's a report from Vice in September. Here's a Medium post from April 2018, and here's a story from Alabama.com from November 2016 - that were all highlighted in this Complex article.
So I think I have hammered my point enough. I just hope that you can think twice before asking your friends or family to pay into something that inevitably will cause a percentage of people to not succeed.
Disguising these *circles* as a *blessing* or promising a community to people who are most likely in a time of need.. just seems shady to me. And while you may have been able to succeed - and even the majority of people around you may succeed - you are doing so at the cost of other individuals losing their money, aka NOT SUCCEEDING.
Want to know a *cRaZy* idea? Maybe instead of spending you $100 on a pyramid scheme, you could use your money to support a small business, an entrepreneur, an athlete, a student, an artist, or a musician. Get takeout at a local restaurant, purchase music from a local band, help fund a Student's move to college...
Go to this page I have made to see a whole list I created of things you could support during this Covid-19 mess that don't include giving money to a Ponzi scheme. â
This is a space for me to share my thoughts, experiences, and more. I hope you enjoy!