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Ponzi Scheme

Ponzi Scheme Investments – The WORST Make Money Online Practice

More often than not, you must have heard of the word “Ponzi“, it’s not a new saying. Being specific, a Ponzi scheme is a fraudulent investment operation where the owner pays returns to its investors from new capital paid to the owner by new investors, rather than from profit earned through legitimate sources. 

Ponzi schemes often times begin as legitimate businesses that sound too good to be true until the business fails to achieve the returns expected, which is inevitable. The business then becomes a Ponzi scheme if it continues under fraudulent terms by giving investors unrealistic promises. Whatever the initial situation, the perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme.


The “Ponzi” name was factorized from Charles Ponzi, the father of Ponzi. It all started when the dude convinced some set of people, claiming that if they could invest into an opportunity, they would get huge returns in no time. As expected, he got a lot of unsuspecting preys who lost thousands of dollars in the process. He was later arrested and sentenced to hard jail time. We thought it would end there, somebody lied!

Unfortunately, Ponzi schemes still exist till today, it’s quite obvious that greed will never free the land. There is a huge amount of Make Money Online schemes relating to Ponzi that spring up often times, especially in countries like Nigeria, just beware, You Should Never Invest In Ponzi!


  1. It first pays, if it does at all, then the promoter vanishes, taking all the remaining investment money.
  2. Since a Ponzi scheme requires a continual stream of investments to fund higher returns, once investment slows down, the scheme collapses as the promoter starts having problems paying the promised returns (the higher the returns, the greater the risk of the Ponzi scheme collapsing). Such liquidity crises often trigger panics, as more people start asking for their money, it is similar to a bank run.
  3. External unfavorable forces, such as a bad economy lead to many investors withdrawing, subsequently crashing the scheme.
  4. As at December 2016, at least 50 Ponzi platforms were created daily throughout the month in Nigeria.
  5. Based on my personal study, most Ponzi sites are launched at night. Remember: Ephesians 5:11 says: “Do not participate in the unfruitful deeds of darkness, but instead even expose them“.

  6. From December 2016 to 1st March 2017, over 5,000 Ponzi websites were launched in Nigeria.

  7. Out of 5,000, not even 2 were still alive as at April 20th, 2017.

  8. Ponzi Scheme is different from pyramid schemes.

  9. People are greedy and lazy, that’s why they prefer Ponzi to Pyramid schemes.

  10. The most painful ponzi scams recorded were on WhatsApp groups.

  11. Ponzi is the easiest way to make money online in Nigeria, at the same time, Ponzi is the worst make money online practice.

  12. If you promote a Ponzi scheme on Nairaland, you will be banned till 2078.

  13. Bitcoin became more popular and valuable, all thanks to the Ponzi evolution.

  14. Ponzi is the only business you are never proud to disclose the establishment, operators of Ponzi do it facelessly. Ponzi is that business that might be owned by your brother and you wouldn’t know.

  15. Ponzi schemes that promise 100% ROI in days will never survive a month.

  16. The first set of investors in a Ponzi program pay to the scheme owners.

  17. MMM is the most popular Ponzi Scheme in Nigeria till date. Needless to say it paved way for others.

  18. Most Ponzi owners are previous investors that have been scammed on other schemes. Funny how they do it like they want to revenge.

  19. The more people the operators of a Ponzi pay, the more people will come in and the more the Ponzi doom draws closer.

  20. Most Ponzi owners after crashing a scheme, lavish the money in no time and come up with another scheme. Some even create like 5 at a time.

  21. Most groups on WhatsApp, as at January 2017, were Ponzi-related.
  22. People are now making money online as Ponzi Advisors. 
  23. The biggest Ponzi shock in Nigeria was MMM in December 2017, the unexpected revelation scattered Xmas for so many Nigerians.
  24. The best Ponzi practice is to do it once and pick the race. Do not re-invest! I know you won’t listen.

  25. The world’s biggest Ponzi scam was worth $50Billion worth of bitcoins.


Mostly known to us, Ponzi schemes are fraudulent and some smart individuals attempt to cash out before its inevitable collapse (leaving later participants to lose everything). Now, there is no justification for Ponzi failure, nothing like it was crashed due to too much of referral bonuses, fake POPs, greedy guilders, media or government interference. All these are meaningless rants, no matter how long that Ponzi lingers, no matter how smart the operators handle the scheme, it will crash!

I will be justifying the statement above in a very simplistic infographic. In reality, the only monetary input of Ponzi schemes comes from new investors. therefore, it is just IMPOSSIBLE for something of this concept to sustain indefinitely, being realistic, there are a limited number of humans in the world. Even if newborn babies were recruited into the scheme as they were being born, the exponential growth of the debt incurred by paying old investors with the investments of new investors is impossible to keep up with. Take that fact and shove it up your head.

Even if babies were recruited into the scheme as they were born, the exponential growth of the debt incurred by paying old investors with the investments of new investors is impossible to keep up with. Take that fact and shove it up your head.

Take a close look at the picture below and study the proceedings…



Before jumping into any form of investment that looks like Ponzi, or rather making an ‘online donation’ with the blind promise of a higher ROI, I suggest you ask the following questions:

1. How are investors paid back? Legitimate investment schemes are transparent. You must be made to understand the details of the programme and the underlying assets. Even if too much of information would not be revealed, you should know enough to understand your risks and potential advantages in terms of getting what is being promised.

2. How aggressively are you being urged to join? This is a sane world, not a baboon island. No one will chase you desperately to come and make money legitimately. Ponzi schemes rely heavily on funds from new investors to pay existing investors, that’s why they run after you up and down just to make sure you drop your purchasing power so they can pay pending members expecting returns, not that they love you that well.

3. How do the promised returns compare with other similar schemes? If promised returns are unusually high, run with your money! Run for your life!

4. How is the scheme regulated and audited? Why would you join a WhatsApp group and start sending funds based on instructions from a faceless and unknown group admin? Regulators are not foolproof, but the lack of a solid regulatory structure means that no one can hold your scheme accountable for its practices or returns.

If you don’t have solid answers to these questions, I repeat, run with your money! Run for your life!

It is your money, you have earned it the hard way, even if you did not, at least it’s yours. Treat it with caution, You Should Never Invest In Ponzi – It’s The WORST Make Money Online Practice.

I have previously written about some 5 Online Jobs You Can Do To Make Money Online In Nigeria. You might want to check them out. You should also check this: Internet Business! Why You Have No Excuse To Remain Broke!

Don’t forget to share with friends.


Fatt Kay

A Computer Addict, Seasonal Web Developer, Born-To-Be Content Writer, Computer Scientist By Force, Social Media Jagaban and an all-in-all Internet Gangstar.