What you need to know about LOOM


You may be living under a rock if you have not heard of LOOM, the new peer to peer investment platform which has become the talk of town in recent days.
Loom has taken center stage with many of Ghanaians especially the youth taking full advantage to rake in huge returns from their investments.
The Security and Exchange Commission (SEC) few days ago declared Loom an unsafe investment venture and warned Ghanaians to avoid investing in it but it appears some Ghanaians who are typically ‘stubborn’ and greedy are refusing to give a hoot about this warning.
Bankinghall.com has investigated the operations of Loom and we bring the underlining characteristics which you may not know
1. Loom has no owner and has no office
People started comparing Loom to Menzgold when it bounced unto the scene but apparently Loom has no office where business is conducted. Neither has it a website where people can even make enquiries from.
Business is conducted on whatsaapp platforms.
2. It has no owner and anyone can start Loom.
Even though loom may have started with a particular person or persons originally generating the idea,There is no record to prove who the owners are and neither has anyone claimed ownership of this Peer to Peer Platform so far.
Anybody at all can start Loom and its quite simple and easy. The only thing required is to have a phone with a whatsapp application and you are good to go.
3. It is a peer to peer investment platform
As common with all peer to peer investment platforms, a loomer needs to get other interested people on board so that already existing loomers can move to the center of the pyramid and eventually cash out.
4. Investors are rewarded eight times of their investment
Loom pays and its that simple. The Loom pyramid requires eight places to be occupied by other interested people who pay the same amount initially paid by the first Loomer in the circle. That makes the first investor’s investment grow by a whooping 8 times.
5. It is likely to collapse soon
Loom has been declared illegitimate and described as a scam SEC. SEC has already warned that people who patromnise Loom do so at their own risk. This alone has scared people especially victims of GDC, Boostpal, MMM etc and will deterred some people from patronizing to avoid being scammed.
That not withstanding, with loom having little or no legitimate earnings, It requires a consistent flow of money from new investors to continue. In the shortage of new investors coming on board to invest, it will surely collapse as there would be no new members joining to enable existing members to move closer to the middle circle to cash out.