Aftermath of MMM: Zimbabweans Start WhatsApp Ponzi Schemes

While MMM Zimbabwe was collapsing, some ‘smart’ Zimbabweans who are still interested of making money from Ponzi Schemes have started WhatsApp Ponzi Schemes, perhaps to fill the vacuum created by MMM.

Since MMM froze Mavros (Ponzi currency used in the network by members to determine the value of donations and interests), many former members who have learnt through the ropes have taken it upon themselves to float various WhatsApp groups that operate like a ‘pseudo-MMM’.

A typical WhatsApp Ponzi Scheme is operated by an admin who controls just about everything on the group. All members are required to pay the admin about USD3 per week to remain in the group. Just like MMM, there are no guarantees or promise of payback by any member who receives help in the group.

To forestall immediate collapse of a typical WhatsApp Ponzi Scheme, the admin typically regulates the admission rate in the group to ensure the number of deposits and withdrawals are regulated.

Unlike MMM, there are no Ponzi currency to determine the cummulative interests earned by any member. The group typically promise 30%. Transfer of funds are done via EcoCash, a mobile money platform in Zimbabwe.

Many financial analysts sampled by PageOne Startup Desk warned that the danger in WhatsApp groups that offer similar promise such as MMM is far greater than organised Ponzi schemes as they mostly run by people who are faceless and could just hit the delete button to get rid of the group and make away with funds.

MMM East Africa, admin to MMM Zimbabwe has not released any statement on the future of MMM. The last statement by the scheme was made last week when it announced that it will be holding a fresh batch of its Guiders’ School.

We cannot independently verify if WhatsApp Ponzi Schemes has not entered Nigeria. WhatsApp is open to anyone and so is the MMM philosophy. The scheme claimed to have over 500,000 members in Nigeria.

It will also be difficult for Facebook Inc., owners of WhatsApp to delete any group as the company had in March adopted end-to-end encryption for all communication within and out of the application.