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The “Giving Flower,” also known as a "Blessing Loom" or similar names, is a peer-to-peer money exchange scheme that often claims to foster financial empowerment or community wealth-building. Despite its warm and fuzzy branding, it’s nothing more than a cleverly disguised Ponzi scheme. Let’s analyze its structure, why it’s illegal, and how to recognize it.
How the Giving Flower Works
The scheme typically involves a diagram shaped like a flower or a loom. Participants are asked to "gift" a set amount of money (e.g., $500) to join the circle. Here's how it operates:
The Gifting Phase:
Participants “gift” money to the person at the center of the diagram, often called the “receiver.” This is framed as an act of generosity or community giving.
Recruitment:
After gifting, participants recruit others to join the outermost “petals” of the flower. For the flower to continue, each participant must recruit a specified number of new people, typically two.
Rotation:
As new people join and contribute money, the original “receiver” gets their payout and exits the flower. The remaining participants move closer to the center, aiming to eventually “bloom” and collect their payout.
Collapse:
The scheme relies entirely on recruitment to bring in new money. When recruitment slows down or stops, the flower collapses, leaving the majority of participants without any returns.
Why the Giving Flower Is a Ponzi Scheme
The Giving Flower doesn’t involve any products or services. The money simply moves from one participant to another, with payouts dependent on recruiting new members.
No tangible value: Unlike MLMs that sell products or services, the Giving Flower offers no goods in exchange for the money you pay.
Mathematical collapse: Recruitment-based schemes are unsustainable because they require exponential growth. For every "flower" to bloom, new participants must keep joining. Eventually, the pool of new recruits dries up, leaving many at the outer edges unpaid.
False promises: It’s often marketed as a “no-risk” way to double or triple your money, but the system is inherently designed to benefit only a small group at the top.
During the COVID-19 pandemic, the "Blessing Loom" exploded on social media platforms like Facebook, Instagram, and even TikTok. Promoters often used hashtags like #CommunityWealth or #FinancialFreedom to draw people in.
For example:
Participants were encouraged to join a group by gifting $100 or $500, with the promise of receiving $800 or $4,000 once they reached the center of the loom.
To “advance,” participants were told to recruit others into the loom, perpetuating the cycle.
Eventually, platforms like Facebook flagged these schemes, and law enforcement began cracking down on organizers in multiple states.
How It Differs from MLMs
While MLMs may blur ethical lines with heavy recruitment, they sell legitimate products or services. The Giving Flower, like all Ponzi schemes, does not sell or create anything of value.
Aspect | Giving Flower (Ponzi) | MLM |
Core Operation | Shuffling money between participants. | Selling products or services. |
Recruitment Role | Entirely reliant on recruiting new people. | Important, but supported by sales. |
Legality | Illegal in all forms. | Legal when structured correctly. |
How to Protect Yourself
Understand the model: If an opportunity claims to “gift” you money without a product or service involved, it’s a red flag.
Ask questions: Who is making money, and how? If it relies solely on recruitment, it’s likely a scam.
Do the math: Ponzi-like schemes require exponential growth. For example, a flower with one receiver at the center needs 7 new participants to fill the first ring, 49 for the second, and so on. Eventually, the numbers become impossible.
Consult legal resources: Check if the scheme is compliant with local laws or flagged by consumer protection agencies.
How is The Giving Flower Different from a SuSu?
The difference between a Giving Flower and a Susu lies in their structure, purpose, and sustainability. While a Giving Flower is essentially a Ponzi scheme, a Susu is a legitimate and traditional savings system rooted in mutual trust and community cooperation.
A Susu is an informal, community-based savings system that has been practiced for generations in many African, Caribbean, and immigrant communities. It is designed to help individuals pool their resources and provide each participant with access to a lump sum of money at a specific time.
Here’s how it works:
Group Formation: A group of trusted individuals agrees to contribute a fixed amount of money regularly (weekly, bi-weekly, or monthly) into a shared pool.
Turns to Receive Funds: Each participant takes turns receiving the lump sum from the pool, ensuring that everyone benefits at least once.
Fixed Cycle: The system continues until all participants have received their turn.
Key Characteristics of a Susu:
Trust-Based: Participants typically know and trust each other personally.
No Recruitment: A Susu doesn’t require new members to join for the system to work.
No Profits: There’s no expectation of monetary gain beyond receiving the same amount you contribute.
A Susu is built on trust, transparency, and cooperation. Every member knows exactly where the money is going and when they will receive their turn. In contrast, a Giving Flower exploits participants by misleading them into thinking they will receive large payouts without understanding the fragility of the scheme.
Aspect | Susu | Giving Flower |
Purpose | Cooperative savings for mutual benefit. | Promises exponential returns through gifting. |
Structure | Fixed group with no external recruitment. | Recruitment-dependent; pyramid-like structure. |
Sustainability | Sustainable as long as members contribute. | Unsustainable; collapses without recruits. |
Monetary Gain | No profit; members receive what they contribute. | Illusory profits; payouts come from others' contributions. |
Legality | Legal and culturally significant. | Illegal in most countries. |
Cultural Roots | Originates from African and Caribbean traditions. | A modern spin on the Ponzi scheme. |
Key Questions to Differentiate:
If you're unsure whether a system is a Susu or a Giving Flower, ask yourself:
Does it require recruitment?
Susu: No, it operates with a fixed group.
Giving Flower: Yes, it depends on new members.
Is there transparency?
Susu: Yes, everyone knows when they’ll receive the lump sum.
Giving Flower: No, the payout depends on ongoing recruitment.
Is profit involved?
Susu: No, the amount contributed equals the amount received.
Giving Flower: Promises profits far beyond what is contributed.
A Susu is a powerful tool for collective financial empowerment and community-building, while a Giving Flower is a manipulative scheme designed to enrich a few at the expense of others. Always do your research and trust your instincts—if something sounds too good to be true, it likely is.
Final Diagnosis: A Risk to Avoid
The Giving Flower may look beautiful on the surface, but its roots are deeply flawed. Just like a Ponzi scheme, it thrives on deception and preys on trust and financial vulnerability. If you see a scheme that asks you to pay upfront and promises exponential returns through recruitment, run—don’t walk—away.
Remember, real wealth-building involves creating value, not chasing illusions.
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