Less than a day after Mavrodi released his open letter to the government, the MMM system has officially announced it is holding users money for a month. Effectively putting the system on hold it has crashed in the eyes of the public.
“The things are still going well; the participants feel calm; everyone gets paid – as you can see, there haven’t been any payment delays or other problems yet – but! It is better to avoid taking risk.:-)) (Moreover, there are almost three weeks left to the New Year.)
Ponzi schemes usually have a short shelf life as once the cash inflow dries up many cannot move on and instantly collapse. Average lifetimes vary from weeks to months but the international MMM operations remain much longer due to their bigger scale. Commons signs of crashing include sites and operations being put on hold for maintenance or sites upgrading in which many do not return to carry on operations or refund customers.
To conclude the freezing of the assets held by the company has been indicative of a crash. However with over a million users money stuck in the system this may just be the start of the latest crash for the international system. While warnings had been given out by the central bank warning users of the dangers associated in this type of gambling, the letter released by the founder, Mavrodi, attempted to instill confidence in customers. Players should always be advised losses can exceed deposits especially with ponzi schemes which have a notorious fail rate.