Peer to Peer Investment: Stay away!!!!
post-template-default,single,single-post,postid-24933,single-format-standard,bridge-core-1.0.4,ajax_fade,page_not_loaded,,qode-title-hidden,qode_grid_1300,footer_responsive_adv,qode-content-sidebar-responsive,qode-theme-ver-18.0.9,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-5.7,vc_responsive

Peer to Peer Investment: Stay away!!!!

An investment simply means “to put ones money into a financial scheme with the aims of attaining profits”. The last word will be the crux of this article.

There is an age-old adage that says “ if it is too good to be true, stay away”. Over the past five years, so many financial schemes have popped up promising “ over the board” profits only to end up being scrapped leaving investors stranded. In hindsight, these schemes were always what it always looked and sounded like- A Ponzi scheme; one which played on the human greed and crave to make money.

A Ponzi scheme by definition is a fraudulent financial enterprise that generates profits for old clients from money invested by new clients instead of via legitimate businesses. Sounds familiar? Yes. There was MMM in Nigeria and Zimbabwe, DKM in Ghana and a whole lot scattered over the continent with new ones springing up in geometric proportions daily. They promise atrocious profits and usually use a “multi-level arm” system. In recent years since the advent of smartphones, they have metamorphosed into mobile apps which enable you to make fluid payment and get your supposed profits via same medium.

So with the threats abounding, how does the “average” woman oblivious of these operations avert such investments? There are three simple principles.

1. Keep tabs of the average treasury bill rates; anything that offers profits 50% more than that is most likely a scam.

2. Keep tabs of the average interest rates; if you can borrow from a bank, invest in the said venture and still make huge profits, it is fraudulent.

3. Research and find out if that company has other fiscal assets or profit making investments. It is your right to ask questions and validate them by carrying out your private investigations. If your findings show minimal to no indication, that scheme is a scam.

You have worked really hard to create the money you currently have and you must be wise and knowledgeable enough not to lose it via any trivial enterprise. Peer to Peer investments are not only a gamble but out and out fraud. Like the old saying goes “if it walks like a duck, quacks like a duck and looks like a duck, it is a duck”. This write-up has given you clues to identify such frauds but the most important advise is to eliminate greed and the “quick cash” fervour which these “bad people” pry and play on. I would advise you start a business and if you don’t have the stomach to be an entrepreneur, invest in bonds, treasury bills, shares or all of the above.

No Comments

Post A Comment