Business Pyramid System

Source: DrAfter123 / Getty

Chances are really high; you have seen many of your Instagram followers participating in a “money-making” scheme called the “Blessing Loom” promising money payouts. Now folks are wondering if this is honestly legit or nah?

The “Blessing Loom,” which is also known as the “Snowflake Blessing,” “Christmas Wheel,” or “Infinity Loom,” isn’t new; in fact, it’s been around for a while. It’s no coincidence it has gained traction during a time where a lot of people are looking for ways to make a quick buck due to losing their jobs as a result of the COVID-19 global pandemic. Specifically, Black and brown folks seem to be heavily pushing it.

So how does it work?

Well, you get a simple invite, usually from a friend politely letting you know the Blessing Loom works, and you can cash out by joining in. Of course, to participate, it will cost you. To join a loom, you will pay a one time fee of $100 via Venmo, Paypal, or Cash App, which will get your name placed on one of the 8 spots outside of the loom. Your goal is to get to the center of the loom to collect a payout of $800, and to make that happen, you need to recruit two other people and get them to invest $100. They will be tasked to do the same.

Now, if you know anything about “pyramid schemes,” then the Blessing Loom’s setup sounds precisely like one. A pyramid scheme is defined as:

“A form of investment (illegal in the US and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.”
You know the saying, “If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.” Of course, there will be those who swear by it, and in some cases, it might work, but make no mistake it is a scam. So we would caution you to seriously think twice before you throw some of your $1,200 from your stimulus money into a Blooming Loom.

 

Be careful out there, this is a prime time for quick money-making schemes and scams.

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Photo: DrAfter123 / Getty

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