Betting firms and Ponzi schemes always come up in order to take money from the public to fund campaigns.
As 2022 approaches, Masa X has come to the market.
The firm which boasts of being regulated with Capital Markets Authority is promising investors over 24 per cent returns per annum. Which is huge considering that foreign markets (offshore currencies and commodities), where it says it invests are making losses.
Recently, a Ponzi scheme that operates in another market fled with billions of money from Kenyans. Crowd1 is said to have scammed people all over Africa.
Mansa X plans to give its investors 24 per cent returns seems good to be true.
And that’s because there’s a lesson that Kenyans seem to have not learnt in another Forex trading company that was known as Maalim Group of Companies founded by Abdalla Mohamed Ali who at its height fled with Sh15 billion after promising investors huge returns on their investment.
Like Mansa X, Maalim Group also boasted of regulation by Capital Markets Authority (CMA).
Currencies, commodities and stock markets all over the world are experiencing losses, with the Nikkei of Japan down 5%, Dow Jones of US down 13% and the FTSE of Europe down 19%, it remains a mystery how Mansa X is going to deliver 24% per annum to investors investing in offshore markets that are losing money.
A client was not able to get details of the actual assets that support the promised return of 24 per cent by Mansa X.
Ponzi scheme
Analysts agree that Mansa X has all the elements of a ponzi scheme as it lacks the underlying assets that can pay the overrated 24 per cent per annum return being promised to investors.
The owners of the shadowy firm have baited investors by billing itself as “Kenya’s first and only CMA regulated Online Forex Trading Money Manager.”
This is the same way Maalin Group christened itself but still disappeared with Sh15 billion of investors money under CMA watch.
Till date, CMA has not moved to recover money for Maalin Group investors. CMA should move to stop Mansa X.
More bait
Mansa X has invested in good PR to woo potential investors, on their website, the following message is posted:
“Investing in the foreign exchange market, alternative investments, and other leveraged asset classes carry a high level of risk, and may not be suitable for all types of investors. Before deciding to invest in any type of high leverage trading, you should carefully consider your investment objectives, length of investment and risk appetite. The possibility exists that you could sustain a loss of some of your initial investment and past performance is never indicative of future results. Terms and conditions apply,” the firm operated by Standard Investment Bank (SIB) says, hence, on one hand, they say they have guaranteed a return but on the other hand they saying you can lose your money.
In their fact sheet, the company says the minimum one can invest is Ksh250,000, plus a management fee of 10 per cent and 10 per cent above the hurdle rate, in this case 24 per cent.
A hurdle rate is the minimum rate of return on a project or investment required by a manager or investor.
Mansa X says that it has Ksh2.2 billion assets under management since it was started in January 2019.
Copied from Cnyakundi.com
