For those looking for an alternative to the ‘frozen’ MMM Nigeria, Donation Hub, is the ‘hottest’ Ponzi Scheme that has surfaced on the Internet.
While MMM Nigeria and its copycats promise a minimum of 30%, Donation Hub promises a minimum of 50% return on investment to its members.
To keep its members to keep coming to the site, Donation Hub does not release the entire 50% interest but “The system holds a percentage between 20% of your incoming donation in order for users to re-donate and once you donate again, your hold percentage is then released to the next donation”.
However, a Ponzi Scheme analyst told PageOne.ng that the 20% might be the gain for the people bankrolling the scheme since they have to spend money to keep the ‘company’ alive.
Donation Hub describes itself as “A worldwide channel to connect participants to share donations and receive incentives in return”.
There are no proof that Donation Hub is an international Ponzi Scheme operations as its owners claim on its site. Alexa, the website ranking company said 96.4% of the total traffic to the site are from Nigeria, less than 2% of the remaining traffic are from the United States. These are more less Nigerians who are being counted as foreigners by tracking errors.
Without giving any detail about is ownership organisational structure, the site claimed that it is “A group of ordinary people, selflessly helping each other”.
Donation Hub currently claim to have 1,678 registered users. It said 1.1 million donations have been carried on its site since it started it operations with over USD22 million given out as incentive earned by its members. Available evidence also showed that the scheme started in November. Its claims and milestones are therefore incredible for a Ponzi Scheme that is less than three months old
So here is the catch for Donation Hub, the system is operated in a pseudo transparent stock exchange style where its members login into the platform at certain times of the day to either pledge to donate or receive donations.
Donation Hub also encourage its members to make donations in Bitcoin while allowing other currencies including the US Dollar. If you are a first time visitor to the site, you will be thrilled by the level of sophistication of the site’s engineering that allows all members to donate and cash out their investment in real time.
There are no traces of whoever owns, runs or direct the affairs of Donation Hub. The scheme is new and for a Ponzi Scheme at that level, there no tangible reason for anyone to be part of the scheme.
The pseudo-transparent manner the site is being administered is not a guarantee that things will not ‘go south’. Ponzi Schemes often fail even when its owners make them look like they are logically designed with transparent financial principles.
Since MMM Global and its various franchises collapsed and many are showing signs of collapse, many people who have benefitted from MMM Global and other related Ponzi Schemes have started variants of the same system. Donation Hub is not an exception.