MMM ‘donations’ are free gifts

And members (technically) should expect nothing in return.

JOHANNESBURG – You cannot lose what you freely give away. In the case of the self-proclaimed mutual financial aid scheme, MMM, members “donate” money to one another and so presumably must be content to not get anything in return.

If they are not comfortable with that notion, they contradict the very essence of a donation (a gift freely given) and therefore of the scheme itself.

Deon van Rensburg – who on behalf of MMM members is seeking a ruling from the High Court on whether or not MMM is a ponzi or pyramid scheme – explains that there are no returns earned in the MMM system.

Once you have registered with MMM, you need to first donate money to someone else, at a minimum amount of R100, before being rewarded with mavro.

Mavro is an internal currency that is given as a reward to donors. It increases in value and can later be converted into hard currency.

“MMM relies on existing members donating back into the system,” Van Rensburg explains, adding that the scheme depends on both growth in new members and money being put back into the system.

“It requires people to be honest and generous,” he says.

Having said that, once you have made a donation, there is no guarantee that you will receive assistance, Van Rensburg adds.

After registering on the system (which appears to be a computerised platform that functions off an algorithm) and committing a donation, you are provided with a bank account number into which you transfer the donation.

Once the person confirms receipt, your mavro become active and allow you to later request financial assistance by converting some or all of your mavro into hard currency.

Currently, the conversion rate of mavro to hard currency is 100% – i.e. 1 mavro = R1. Mavro increase at a rate of 30% per month, according to MMM’s website.

If the growth rate falls to 0% (because new members stop joining and existing members stop donating) then you will simply get what you put in, according to Van Rensburg.

“However, if the conversion rate decreases you will receive assistance for a lesser amount than what you have provided assistance for,” he notes.

Mavro is there to balance the inflow and outflow of money, and its growth rate can be adjusted to keep this balance in check, according to administrators of MMM South Africa’s Facebook page, who emphasise that “there are no promises or guarantees”.

Asked whether members could be unknowingly funding criminals through this anonymous system of donations exchange, Van Rensburg comments, “If I wanted to launder money I wouldn’t use MMM, because there are no guarantees.”

MMM members should have no problem with giving away their money to help others and receiving nothing in return.

That is, after all, the definition of a donation.

Van Rensburg – who suggests that as much as 75% of people participating in MMM could be classified as middle-class – argues that the scheme represents the purest form of social upliftment there can be.

“I can’t lose money if I give it away. You donate your money. I might get help, I might not,” he says.

Despite being such an ardent supporter of the scheme, Van Rensburg himself is not a participant in MMM.



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Yea its true it is regarded as a donation BUT no one would donate there hard earned cash for no return not in this day and age NOT to the extent MMM member donate. Some PH of 100k and more expecting that 30% GH YET
some others dont need to PH a cent of their own money because they have earned so much referral bonuses from there downlines these GUIDERS can PH minimal amounts yet GH huge amounts based on there bonus system.
Its the Guiders withdrawing only there bonuses that have caused the collapse.

“Despite being such an ardent supporter of the scheme, Van Rensburg himself is not a participant in MMM”…
Well, that really says it all! If he counters this with an excuse like he can’t be a member while legally representing other members, he will be talking nonsense. Of course he can.
And his arithmetic is rubbish as well. The conversion rate of 1 mavro to R1 will reduce rapidly, and the mavro will be worthless once the scheme folds. Who is going to accept monopoly money for a loaf of bread? It is NOT the same as bitcoin. It all comes back to the fact that money in circulation merely represents the underlying value of goods and services, either physical or intellectual.

Since when do you have to pay money to receive a donation? I have never heard of a charity that had to pay someone money before they will receive money.

If this is a true community where people help each other, shouldn’t you be able to “Get Help” without having to pay any money beforehand?

Spot on again! That would go up like a lead balloon. Yet, essentially that is what MMM does. It differs only in the first stage of membership where the PH people all chuck their money in the pot, after that it is GH/PH/GH/PH etc

I understand it’s easy to judge looking back (“retrospect is a perfect science”) ..but for goodness sakes how many times do people have to be told: if someone knows how to get rich quickly, they won’t share that idea with you (unless they are making themselves rich at your expense).

To ‘invest’ money for a return it requires simple maths to realise you need capital appreciation or a cashflow stream. Evaluating the quality of these is what prudent investing is based on. If you can’t understand where your ‘donations’ are going and, more importantly, where your ‘returns’ are coming from – then why are you putting your money into it?? Here there is no underlying asset but only the ‘potential’ donation from aother member. This has to be a joke! closed systems don’t generate returns out of thin air.

And the internal currency “Mavro” is appreciating at 30% per month. It’s hard to explain how many times I cringed reading this article.

Coming from the investment industry myself, I can safely say that for the vast majority of investments: the best investments are the most boring. There is no such thing as a sustainable “overnight success”. If you want to get rich then there are 4 buckets: luck, insider trading/illegal means, hard work meeting opportunity (in the case of personal business success) and there is slow and steady long term wealth building (in the case of investing).

This is harsh view but most clients of MMM can choose which camp they fall into between only: greed or ignorance.

On a side note the FSB should lock these things down far sooner in order to protect those that aren’t familiar with such thieving operations.

And it’s the poorest who are the hardest hit. Send these social predators to jail.

And the cynics will get all the blame as it collapses, the rate of collapse accelerating similar to when there’s a run on the bank(s). You cannot make money out of thin air. Yes, it will work for a time while new members rush in and donate their money to whoever wants it, eyes glazed over with the prospect of 30% per month. And if not the cynics on MW, then the banks, the FSB, all other “authorities” will be held responsible.

Oh! now I understand it. You get something for nothing which is against all economic principles and laws of the universe except those of MMM. So all MMM people can come and work for me and maybe I will pay them or maybe I wont. Happy days. I suppose the MMM also believe in the Easter Bunny. As long as they happy everything is ok in MMM land.

Yes, but send a few over to me as I have a big redecoration project and I really don’t want to pay for the labour.
BTW, that picture of Mavrodi at the top of Hanna’s article “The trouble with MMM” is supposedly off his website. I looked up the Cyrillic letters one by one and they spell “Gannibal”. The Russian for cannibal is “kannibal” so the G at the beginning is possibly a local variant. So is it perhaps from his police record? The miserable expression on his face should be enough to scare most people away. 🙂

What’s the difference, is South African Insurance -, Life Insurance and Medical aid schemes not run on the same basis? …….“MMM relies on existing members donating back into the system,” adding that the scheme depends on both growth in new members and money being put back into the system. You can’t lose money if I give it away. You donate your money. You might get help or might get paid out, or you might not, depending on the circumstances, right?

End of comments.





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