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Wednesday, December 14, 2016

Why MMM Suspended All Payments For 1 Month

Why MMM Suspended All
Payments For 1 Month

Now that MMM suspended all
payments, will the scheme crash in
Nigeria
– No, it won’t: so don’t panic
– panic won’t help anyone. While
the administrators of MMM
communicated the several reasons
for suspending payment on a
scheme 3 million Nigerians have
benefited from(also becoming 5th
most visited website in Nigeria in
last than 1 year), the main reason is
however lost in the piles of
explanations – official and
unofficial.

On Twitter at 6:30 p.m. Monday
night, MMM Nigeria said interested
participants should be cautious and
use only their “spare money” – that
is, the money you can afford to do
without.
“MMM has always advised that you
use your #SpareMoney. Use your
#SpareMoney and #SpareMoney
only. Don’t be unnecessarily
greedy,” MMM tweeted .
He explained that most
participants would want to cash
out their money for the festive
period and that would lead to a
breakdown of the system as it is
a mutual aid community of
individuals helping individuals
… Marvodi however urged
participants not to panic …
Displayed on the pages of
participants of the scheme, its
founder, Sergey Marvodi explained
that the reason for the measure was
to ensure the sustainability of the
scheme in the New Year and make it
better.
He said that the money of
participants would continue to grow
in the platform along with their
bonuses which they would be able to
cash out as from Jan. 13, 2017.
He explained that most participants
would want to cash out their money
for the festive period and that would
lead to a breakdown of the system
as it is a mutual aid community of
individuals helping individuals.
He blamed a “heavy workload”
being experienced by its servers and
the panic caused by the Nigerian
government and media for the
development but said it will be back
by mid-January, 2017.
He added that it was also a way of
ensuring the sustainability of the
scheme which has been under a lot
of attack from the Federal
Government and the media of its
collapse in December.
Marvodi, however, urged
participants not to panic as the
measure in place would only make
the platform stronger with better
strategies to be put in place as from
January.
The Nigerian Security and Exchange
Commission (SEC), the Central Bank
of Nigeria (CBN), and Economic
analysts warned Nigerians about the
scheme. The government agencies
warned that the same way the
scheme has enriched some people, it
would throw some into poverty.
While several participants have
expressed their disappointments on
this new move by administrators of
the MMM, stating that the same
measure being put for the
sustainability of the scheme would
lead to its eventual collapse.
The MMM is a brilliant scheme, a
non-sentimental observer will
tell you. It is a collector and
distributor of funds, just like
what the banks are doing…
MMM allows Nigerians to sign up
and pledge a monetary donation to
people who are in need of it. The
pledge is made with a guarantee of
30% appreciation fee that is
essentially an interest on the
specific amount donated.
“Dear Mavrodians, the one month
freezing of confirmed Mavros is a
step to ensure the sustainability and
stability of the MMM Nigeria
system.
“There is no better time to PH
(provide help) than now when you
can earn 50% more of your amount
of PH (provided help). There is
nothing to worry about,” MMM said.

MAIN REASON FOR SUSPENSION OF
PAYMENT
The MMM is a brilliant scheme, a
non-sentimental observer will tell
you. It is a collector and distributor
of funds, just like what the banks
are doing – a bank, like MMM, will
crash when we all(customers) panic
and withdraw our money at the
same time. While the scheme makes
it look like your ‘investment’ is
growing, and ‘dashes’ out money
faster than the world’s biggest
money minting complex can print
money – the truth is, participants’
money is only being recycled –
robbing peter to pay paul, and as
long as participants(debtors) don’t
all ask for money at the same time –
the scheme will stay, maybe even for
a thousand years.
Truth is, MMM is only
susceptible to one thing- panic
withdrawals, and until that
happens like in Zimbabwe, not
even the Federal regulators can
shut down the scheme – since
MMM is everyone and it is no
one.
In Decembers, Nigerians(like other
cultures in the world) have habits of
over-spending and becoming very
broke in January – and the only way
to prevent mass withdrawals is to
freeze all payments till mid-January
when it will no longer be needed.
With recent ‘negative’ publicities, the
panic to withdraw funds will even
become more and the system will
evenly come crashing down through
unfulfilled request – since no one
knows the liquidity ratio of the
scheme; it is unregulated and not a
bank, and produces no real goods or
commodity which can be used in
exchange for withdrawal requests.
Truth is, MMM is only susceptible to
one thing- panic withdrawals, and
until that happens like in Zimbabwe,
not even the Federal regulators can
shut down the scheme – since MMM
is everyone and it is no one.
TOGETHER WE CHANGE THE WORLD.


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