In our analysis on some online ‘businesses’, we are going to take a critical look at the rave of the moment in Nigeria cyber business, Chymall. Just like we analysed MMM and other online businesses that promise all the goodies of this world, we are going to do justice to Chymall ‘investment’.
The company which originated from Malaysia was founded by Mr. Ben Chan. Chy Mall was launched in Nigeria on the 10th of August 2019, with their African head office located in Accra Ghana. Unlike most online businesses that purportedly traded on forex, Chymall prides itself as E-commerce trading platform that trades in all sorts of products.
Chymall Business Plan
In Chymall, an “investor” is expected to purchase any of the five packages called VIP1, VIP2, VIP3, VIP4 and VIP5 with registration fees of $25, $50, $100, $300 and $600 respectively. At 380 naira per dollar, the fees amounts to N9500, N19,000, N38,000, N114,000 and N228,000 respectively. When an “investor” purchased any of the plans, he is offered an online space in Chymall platform where he is expected to trade the goods he purchased and make some profits. Now here is the catch, Chymall promise to trade the “goods” for the “investor” and remits the profits at 3-5% to him every 10-12 days including his capital.
For example, someone at VIP2 starts with a trading capital of ($90 or N34,200) and is expected to make a profit of $7 (N2660) every 10-12 days or $21 (N7980) per month. Someone at VIP5 who starts with a trading capital ($1080 or N410,400) is expected to make a profit of $84(N31,920) every 10-12 days or $252(N95,760) per month.
The “investor’s” only job is to put in his trading capital and starts earning profits of 5% every 10-12 days. This amounts to 15% of Return on Investment (ROI) in one month and 90 per cent in six months. (Sounds too good)
Another attractive feature of Chymall is that referral is not compulsory.
First, Chymall promise of 90% return on investment is too good to be true. Money does not grow in geometric progression and therefore this claim of Chymall is a red flag.
Secondly, like most ponzi schemes, Chymall products are usually fake, nonexistent and of no value. In its website, most of the products pages are empty with some products having a 0$ price tag that when clicked, displays not in stock. Their products have high sounding titles that one has never seen the user. Some of these products include; Quantum Belt Chip, Anti Theft Card, Marm Moxibustion Magic Chest Patch, Smart Massage Instrument, Negative Ion Comb etc. Who buys these products? Who uses them? Nobody knows. Unfortunately, most ‘investors’ are more interested in doubling their cash.
Thirdly, Chymall website left so much to be desired for an E-commerce business. It has a dummy number of ”400-600-0888”. For Christ sake, what legit company uses a dummy number. Its customer service is almost Zero as its automated answering machines only request for your transaction detail whenever a person call.
Fourthly, against its claim that referral is not compulsory, the business is built on Multi Level Marketing model that encourages Network Marketing as extra bonus is attached to it.
Lastly is the big question. Why must an E-commerce business needs other people’s money to trade? You have all the goods as you claimed. Why not sell them to customers directly?
Chymall as a company does not sell any tangible product. Like all ponzi and pyramid schemes, it uses money paid by new ‘investors’ to pay off old ‘investors’. Its so called products are not in anywhere selling as fast as it makes the members to believe. The ‘products’ have no tangible value to produce 5% return on investment every 10-12 days. The only people that may benefit from the scam are the initial ‘investors’ while the newer members will have their money vanished in the pyramid scheme. Like all ponzi scheme, Chymall is not sustainable and like others before it like MMM is built to collapse while the founders become richer.