Now That the Ponzi Bubble Has Burst, Can We Get Back to Work?

For months, Nigerians at home and abroad were swept up in the latest wave of Ponzi schemes cleverly disguised as forex trading platforms. Names like CBEX, PCEX, WWWCOIN, and several others quickly became household terms. They promised high returns on investments, often claiming to engage in crypto or futures trading. And for a while, they delivered until the bubble burst.

The exact origins of these platforms are hard to trace, but one thing is certain: they grew rapidly, thanks to aggressive marketing and word-of-mouth testimonials. The schemes offered daily profits, typically at a rate of 1 percent of the total investment. These returns were shared in real time, with trading signals dished out at specific hours of the day.

The results were attractive, almost too good to be true. But in a country where economic hardship continues to push people toward quick money opportunities, skepticism was easily overridden by the testimonies of early beneficiaries.

Indeed, many Nigerians made millions in profits at least initially. Those who cashed out early counted their gains and moved on. However, others, driven by greed or optimism, left their money in the system, hoping to double or triple their capital.

As more people joined, often after seeing friends and family members cashing out daily, the illusion of legitimacy grew stronger.

But like every Ponzi scheme, the bubble eventually burst.

The first sign of trouble came when subscribers began experiencing delays in accessing their profits. Withdrawals, which used to be instant or at most processed within a few hours, became sluggish. Then came the dreaded moment-complete inaccessibility.

Investors could see their account balances grow on the platforms, but their attempts to cash out were futile.

Panic spread quickly. The administrators of these schemes issued several statements, assuring subscribers that it was a routine system maintenance and there was no need for alarm. They promised that withdrawals would resume shortly.

But instead of a return to normalcy, what followed was total silence. The platforms went offline with subscribers having their balance disappear into thin air. Influencers who once aggressively promoted the schemes disappeared. Makeshift offices across cities like Ibadan and Lagos were vandalised.

In the days that followed, the reality hit hard-billions of naira had vanished. Distraught investors took to social media, sharing their losses, warning others, and in some cases, demanding justice.

In places like Ibadan, some aggrieved subscribers stormed and vandalized the physical offices of the promoters, hoping to recover something, or at least make a statement.

This recent crash is not Nigeria's first tryst with Ponzi schemes. From MMM to the likes of MBA Forex, the playbook remains the same: promise high returns, grow a community through referral-based structures, pay initial investors with the funds of new joiners, and then vanish when the system becomes unsustainable.

So, what happens next?

The collapse of CBEX, PCEX, and others should serve as a stark reminder that there are no shortcuts to wealth. These platforms capitalized on the desperation of ordinary people trying to beat inflation and escape poverty.

But now that the dust has settled, the question we must all ask is: can we finally get back to work?

There is no doubt that Nigerians are entrepreneurial, hardworking, and resilient. But our energies must be channeled into legitimate ventures-businesses that are sustainable, ethical, and legal.

Financial literacy must be prioritized. People must learn to question returns that sound too good to be true and seek out regulated investment options. Government agencies and the financial sector must also do more to protect citizens by cracking down early on suspicious schemes.

The collapse of these schemes is a painful lesson, but it should not be in vain. As we rebuild, may this mark the beginning of a wiser, more informed investment culture in Nigeria.

©️ Adebiyi Excellence Adewale