Did MMM crash in Zimbabwe? This is the question that makes many people in Nigeria really anxious because a crash there may also mean a crash in Nigeria. What’s going on in Zimbabwe? Was there really a crash? Is Nigeria under a threat, too?
How it came to Africa and when did MMM start in Zimbabwe?
The widely known MMM is a Ponzi scheme that was first launched in Russia and several other post-Soviet countries and ten expanded over other areas of the globe. The birth of MMM in Russia took place in the 1990s and since 1994, it was a full-scale “pyramid”. Organized by Sergey Mavrodi, the scheme was represented as something that can help thousands of people get rich in a very short while and without much effort.
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The idea seemed to be very attractive to the people who have just survived the collapse of the USSR and wanted to become millionaires out of the thin air. Seeing the success and the income received from such people, Mavrodi decided to spread his network over other countries where the population was poor and naïve enough to believe his scheming.
Eventually, the scheme spread over Africa. People were happy to bring their money to the organization that was promising so much and in such an attractive way.
MMM in Zimbabwe began in 2015, decades after it was launched in Russia. The population of the country was happy to hear what Mavrodi was promising to them. They expected the attractive 30% of their donations to return every month. A big part of the urban population all around the country was under the effect of the strange Mavrodi fever.
Quite quickly, the number of MMM Mavrodi “partners” reached hundreds of thousands. Knowing well about the fraudulent nature of the scheme, the main bank of Zimbabwe warned the population and suggested they shouldn't have anything to do with MMM.
The first MMM crash of 2016 and its complete fall
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MMM Zimbabwe was gaining its popularity right at the moment when its projects in South Africa were being closed down with a great scandal. In spite of the warnings and the negative experience of the neighbors, people in Zimbabwe were happy to join the scheme and expected great incomes.
In August 2016, the organization declared that the time of paying back the expected money was increased from 7 days to 14 days. In a while, the MMM “partners” were informed that they would receive their money only in 21 days. On September 9, all the MMM accounts in Zimbabwe were frozen and promised to start functioning again in a week.
However, the accounts were revived on September 13 and the organization asked people to promote them actively and engage new “partners”. Nobody noticed that the rate of the MMM currency dropped abruptly by 80%. Even at this rate, people in Zimbabwe never received their incomes even though the website belonging to MMM still works.
As a result, some people decided to leave their funds within the MMM system, hoping that one day everything will recover and they will gain the promised incomes. Others managed to get their investments, though with 80% loss. The number of people who suffered from the fraudulent system were more than 65,000. Such a huge loss of money invested in the malicious scheme seriously affected the country’s economy.
This is the answer to the question, did MMM crash in Zimbabwe. Yes, it did, just like in many other countries. It’s very sad that people didn’t believe the warnings, didn’t want to use the negative experience of their neighbors and still invested money in MMM. It’s even sadder that they will hardly ever receive their money back after Sergey Mavrodi’s death.
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