e-Cooperative Nigeria Online Cooperative and Micro finance Support is a Ponzi or Pyramid Scheme
Would you share this Article with others?
The Website: www.ecooperative.online
e-Cooperative Nigeria is consider a scam because they promise members or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public, making them appealing to people who want to make some quick cash.
Why Do I Say e-Cooperative is a Pyramid or Ponzi Scheme?
e-Cooperative Nigeria is a pyramid or Ponzi scheme because they do not do any form of investments, sell products or services to make money. Instead, they take money from new members that old members recruit, to pay the same old members. If e-Cooperative fails to recruit new members, they will be unable to pay old members, which will cause the scheme to crash. Once the scheme crashes, the owners will take whatever money they have collected and disappear.
The owners of e-Cooperative Nigeria just collect money from new members, and pay some out to old members and keep the rest for themselves. That is all they do. Once the pyramid scheme fails, new members will suffer the most, because they will not get back a single dime of their so-called investment. For the owners, it will be a big payday for them, because they would have already collected thousands or millions of dollars from their members or participants.
What is a Pyramid or Ponzi Scheme?
A pyramid or Ponzi scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
In a pyramid scheme, an organization compels individuals to join and make a payment. In exchange, the organization promises its new members a share of the money taken from every additional member that they recruit. The directors of the organization (those at the top of the pyramid) also receive a share of these payments. For the directors, the scheme is potentially lucrative - whether or not they do any work, the organization's membership has a strong incentive to continue recruiting and funneling money to the top of the pyramid.
Such organizations seldom involve sales of products or services with value. Without creating any goods or services, the only ways for a pyramid scheme to generate revenue are to recruit more members or solicit more money from current members. Eventually, recruiting is no longer possible and most members are unable to profit from the scheme.
Note: Some of the names, addresses, email addresses, telephone numbers or other information in samples on this website may have been impersonated or spoofed.
Please share what you know or ask a question about this article by leaving a comment below. Check the comment section below for additional information, if there is any. Remember to forward suspicious, malicious, or phishing email messages to us at the following email address: firstname.lastname@example.org. And, report missing persons, scams, untrustworthy, or fraudulent websites to us. Tell us why you consider the websites untrustworthy or fraudulent. Also, to quickly find answers to your questions, use our search engine.
You can help maintain Online Threat Alerts (OTA) by paying a service fee. Click here to make payment.
Comments, Questions, Answers, or Reviews
To help protect your privacy, please do not post or remove, your full name, telephone number, email address, username, password, account number, credit card information, home address or other sensitive information in or from your comments, questions, or reviews.
Show More Comments (24)
Write Your Comment, Question, Answer, or Review
Write your comment, question, answer, or review in the box below to share what you know or to get answers. NB: We will use your IP address to display your approximate location to other users.