Breaking news: Boonbuy Network collapses, investors stranded

Breaking news: Boonbuy Network collapses, investors stranded

There are indications that one of the latest Ponzi schemes in town, Boonbuy Network has crashed. According to an eye witness who spoke to PageOne.ng, investors invaded the Surulere office of the Ponzi scheme requesting for their money.

Although the website is still up, but it investors are unable to cash out of the system as promised by the administrators within the given period.

From the look of things, it seems things have gone south for a while now. The founder of Boonbuy Network, one Olayemi Balogun, wrote on the Ponzi scheme’s Facebook page two weeks ago begging investors to be calm with the management.

See below:

Progress Report

Dear Funder,

I greet you in Calabar, Uyo, Oshogbo, Abuja, Osun, Port-Harcourt, Minna, Ilorin, Lagos and in other parts of the country i didn’t mention please, pardon me. My name is Olayemi Balogun,. Some of you know me and many others are yet to meet me. I know you have been waiting to hear from us today as we earlier informed. Just before we get to today’s business, i would like to spend a few minutes first to let you know some basics about what we do. This won’t take long. First of all BBN is NOT a get-rich-quick plan or a Ponzi platform. We have gone too far to scam innocent Nigerians. This platform was introduced to reduce poverty of the low income and lower middle class.

BUILDING TRUST

The rising cost of living and declining employment opportunities is at the highest we have ever witnessed. As such, securing a legitimate second and even a third alternative income is now much more important than ever.

Over the past 5 years, we have studied and explored many wealth redistribution platforms, both international and Nigerian based ones. We observed that the two major reasons many interested people do not participate are lack of trust and lack of funds.

We then asked a vital question “How can we improve lives and earn trust?” We decided to democratize our knowledge and experience by developing a life-changing platform built on transparency and compassion that will reduce the sufferings of large majority of people. Too many dreams are cut short by lopsided government policies that seem to favour the rich and make the poor even more hopeless. This worries us.

Our mission is to provide opportunities to improve the lives of at least 100,000 unique people every year by enabling them earn additional income to start a new side-business or sustain an existing one. Our platform makes your money work for you, and reduces the risks associated with trading and profiting from Bitcoin.

BBN BEFORE / AFTER

BEFORE

There are many stages in the life of a venture and previously Boonbuy offered;

— Daily Income,

— Instant Withdrawal,

— Instant Activation,

— 5% Referral Bonus,

— Direct payment from BBN to your personal bank account and

— We majorly targeted the low income class.

AFTER

With the rapid growth gained in a short time and the factors associated with our type of business, some things become a little more harder to handle at first. Others take longer time to deal with because they depend on other parties like the banks. Some of the changes that occurred in the past few months with the greatest impact on our business include;

— Late Activation

— Late Withdrawals

— Self-activation

— Large volume of cash outflows,

— Introduction of Trading Partners ( That is, Brokers, Merchants, Associate, Promoters, etc.)

— Failed Withdrawals

— Rapid increase in Funders

— General Bank delays in completing payment transactions and

— MarketPlace.

ACHIEVEMENTS

Here are few things we consider our achievement these past few months

First of which is the workability of the idea itself. We started trading cryptocurrency and built an automated platform from scratch that was convenient, transparent, reliable that helped achieved the following;

Fulfilment of 3% income everyday, weekly and daily withdrawals to members bank accounts, Acceptances of all investment plans, viral word of mouth, over 60,000 members, reaching 23 states and various other Nigerian localities. However our greatest achievement is our ability to help individuals & families meet their financial obligations. All these have been possible with no bank loan, no God father, no start-up capital, no external investor and no capital but with only 100 early believers.

CHALLENGES

Businesses generally have their peculiar challenges at different stages and we have had our own fair share. We are aware that many of them have been internal and persistent while others are external and beyond our direct control. The following challenges below have largely impacted our business.

— Overwhelming numbers of funders

— Poor banking transactions resulting to late activations, failed payments and eventual loss of funds,

— High bank charges

— Strict regulatory policies

— Inadequate customer service

— Multiple accounts (Ghost Funders)

— Poor user personal security

— Fluctuations in Dollar-Naira rate

— Inadequate user education

— Culture of propaganda resulting to low new registrations and low trading volume.

— Greedy trading partners

— Frequent platform rule changes

— Inconsistent withdrawal circles

FUNDERS ASSURANCE

To restore your assurance and regain your confidence, we will ensure you get adequate notice of at least 14 days before any major system changes. We will also ensure;

— Your investment is safe and intact.

— Our platform becomes more stable

— Withdrawals will be more consistent

— An Improved Marketplace

i. Short-Term Benefits

Referral bonus

Get more value from your investment when allowed to mature for 90 days

ii. Long-Term Benefits

Re-opening of Marketplace

BROKERS

Individuals from Brokers level upwards can now trade, meaning that they can buy BBNcoin, trade and activate others. We also discovered a lot of Brokers have persistent issues like not trading on behalf of their downlines, this is not supposed to be. All Brokers must trade on behalf of their downlines. Henceforth every Funder must attach themselves to a Broker. They will be constant training for Brokers to improve their effectiveness. Also, N5,000 will be charged from every new account activation.

NOTE: Brokers should advise Funders against having “Ghost Accounts” to avoid being put under unnecessary pressure.

INTERNAL INVESTORS

Traders who are ready to do business, would have the opportunity to buy from other Funders and will be used for activation of New funders. Such a trader must buy a minimum of N1million BBNcoin to qualify as an internal investor. Interested individuals can send an e-mail to investors@boonbuy.net You will also be given the opportunity to activate new accounts to make profit, buying BBNcoin at the rate of N0.95 and selling to new Funders at the rate of N1.00 (That is 50,000 profit on your million investment)

EXTERNAL INVESTORS

External investors who appreciate and are interested in our platform must be wiling to invest minimum of N10 million. Interested individuals can send an e-mail titled “External Investors” to investors@boonbuy.net

BBNCOIN

Contrary to what many Funders think, the BBNcoin is a valuable asset. Which will further appreciate in value in the not so distant future. One major strength of the coin lies on the number of transaction deals and amount carried out on the platform daily. Another strength is the usage. As previously mentioned in an earlier post, we are in talks with major retailers.

MARKETPLACE

Introduction of the marketplace was one of the best innovations that happened to Boonbuy. This helped resolve 80% of the challenges encountered by Boonbuy. Marketplace will quickly help the value of the BBNcoin to appreciate and we enjoin all Funders to sell their BBNcoin to intending Funders. Marketplace trading manual coming soon.

For the benefit of new joiners, here are a few things you should know about the Marketplace

PROS

Reduced large volume of outflows

Improved the failed withdrawal rate

Speed up activation time

Escrow Account to protect Funders funds

BBN marketplace makes complexity of trade simple

Peer-to-peer

Buy and sell

CONS

Slow acceptance

Attracts middle income class; people who are more educated,

Became more sophisticated.

No cash inflows in BBN Account

Brokers not paying Funders

Mopping up of coins

BBNcoin underpricing

PAYOUT PLAN

Due to large number of Funders that the company has to pay in a very short time, we have decided to extend the payment by 90 days starting from July 17th – October 16th. Boonbuy has low funds to complete its payment cycle and will not depend on New Funders registrations, but on the trading. Consequently the company needs more time to trade in order to meet its investors demands. In the meantime, we have also decided to use the marketplace to facilitate payout, to avoid Funders from being stranded.

Payment Categories

A. Funders that have not have requested for withdrawals before from March 1st – May 31st

B. New Funders from June 1st till date

C. Existing Funders that still have outstanding withdrawals

From October 18th, Funders in Category A will only be able to withdraw N50,000 on a monthly basis.

From November 1st, Funders in Category B will only be able to withdraw N50,000 on a monthly basis.

From December 1st, Funders in Category C will only be able to withdraw N50,000 on a monthly basis.

NEW PAYMENT PLAN

Daily Income (1.5 %- 6%)

PLAN MINIMUM (1.5%) MAXIMUM (6%) REFERRAL BONUS

20,000 – 27,000 108,000 1,000 – 10,000

50,000 – 67,000 270,000 1,000 – 10,000

100,000 – 135,000 540,000 1,000 – 10,000

200,000 – 270,000 720,000 1,000 – 10,000

COMMUNICATION

Subsequently, communication will always be via the following channels;

Boonbuy Notice Board, SMS, Video, Designated WhatsApp Numbers

(Designated Numbers are)

CONCLUSION

If you continue with us, you will always make profit. We are open to suggestions, recommendations from every corner.

We also use this letter to solicit your cooperation and believe in the system as you once did.

Thank you for your prayers, support and well-wishes.

Sincerely,

Long live Boonbuy!

Please feel free to come back here and re-read this all over.

Stranded Boonbuy investors are apparently getting the message that their funds might be gone forever. One of the victims of the scheme replied Olayemi Balogun in the same post that:

“You should be ashamed of your stupidity, you tied down funders money and you still have the guts to deceive us to bring in more funders, can you see how daft you are? And you claimed your platform is legit and Naija base and you are a citizen of this country and you know the level of hardship in the country, after so many fake updates on new developments, you cutoff 20 days and still went ahead to reduce the percentage of daily earning and now you still want to keep generating more money for yourselves while you’ve refused to fulfill your promise, you better rethink and come back to your senses in order not to loose peoples trust in you”.

PageOne.ng had earlier predicted the imminent crash in its review why investors must stay away from the Ponzi scheme.

 

Why you need to stay away from Boonbuy Network
In their words promoters of the scheme said their ‘goal is to make money available for businesses like yours to grow. Boonbuy Network is your personal financier for business and empowered living. BBN Network is just right for you if you’re ready to; + Own your home. + Acquire a new car. + Stock your store with products. + Pay your ward’s school fees. + Take that dream vacation’

This mantra is a ‘broken record’ in the Ponzi scheme underbelly. Every new scheme is always out to claim financial independence and give a new lease of life to their investors. However, the story beomes more familiar as they claimed in their next sales pitch that:

‘Our business model won’t work for you if you’re looking for – A Get-rich-fix. – A Ponzi scheme. – An MLM franchise. Now that we’ve gotten that out of the way, let’s move on to some interesting stuff. The people we are looking to partner with are rational, pragmatic, logical, and curious-minded. People who want to make a difference, people who want to ride against the tide; people who don’t like to keep up with the Joneses. People constantly doing a reality check. If that’s you, by all means please read on’.

The statement above will probably make sense to you if you are not conversant with their drift. Every new scheme usually tries to ‘demarket’ other competiting scheme in order to play the ‘devil’s advocate’ and be seen as the ‘good cop’. A proper financial services provider will not as a matter of professionalism and self-regulation take a ample content on its website and marketing materials to take a jab at other providers in order to convince customers and investors they are genuine. This is a red flag that should scare anyone away.

Just another Bitcoin scam?
Going to the more serious part of its claims, Boonbuy Network claimed to be a platform for Booncoin investment and trading. This means the scheme is at the same time pushing its own ‘Ponzi-currency’ called ‘Booncoin’. Whatever that means, there is no genuine digital currency called Booncoin.

As you must have heard everywhere, Bitcoin is a proper digital currency that has no correlation with ‘Booncoin’ or whatever investment scheme they claim to be offering to their investors. There are other digital currencies such as Litecoin, Ethereum and others. Do your research todoy and do not be afraid to ask questions from inpendent but knowledgeable people (mostly licensed financial advisers) when doubt.

First, the scheme has no proof that it is a digital currency. It has no genuine digital currency exchange where anyone can buy or sell the digital currency. As at the time of writing this article, there is no genuine local Bitcoin or indigenous digital currency exchange in Nigeria.

As a matter of fact, Bitcoin is not a legal tender in Nigeria. It is not accepted as a means of payment across all-banking and non-deposit financial services providers in Nigeria. You can read more here on the Central Bank of Nigeria’s ban on all digital currency transactions in Nigeria’s financial system. Note, this does not mean having Bitcoin or any genuine digital currency is illegal but it cannot be bought or accepted by any licensed financial institution in Nigeria because there is no legal framework for digital currency in Nigeria.

On the claim that its investors can invest in the scheme in exchange for its Ponzi currency/points called Booncoin is another major red flag. There is no rationale behind the creation of the coin or point. The aim is to give investors the false impression that their funds are are appreciating in value. In the real sense of things, owners of the scheme are using a SQL database that its promoters willl simply be tweaking the value of the coins at the backend.

False claims, false hopes
Without any proof, Boonbuy Network claimed it started operations since 2013. That is like several years before MMM Nigeria was created. In late 2015, MMM Nigeria was introduced by this individual and another self-styled super guider. Together with thousands of other promoters, many Nigerians lost over NGN80 billion in actual invested funds. The coming of Boonbuy Network is a ‘revisionist’ strategy that will swindle more people in its wake.

Owners of the scheme will always win, investors will alwways be on the loosing end. Ponzi scheme always collapse no matter the ‘sugar-coating’ done to it. Nigerian authorities have refrained from clamping down on such schemes. Apart from not having the technical capacity to do so, the Internet space has become a haven for many schemes of this nature, a proper strategy is needed to fight them not with usual arrest or threats but from their enabling systemsand core ideologies behind them.