Bad Investors crashed Racksterli 1.0, make no mistake about it. And despite the fact that the Racksterli 2.0 is an upgrade on the former, the metrics available on ground reveal that the company will continue to attract bad investors.
Racksterli Affiliate Marketing Income Programme is built basically following the model and blueprint operated by Commercial Banks in Nigeria.
Technically speaking, there is really no major difference between Commercial Banks in Nigeria and Racksterli. According to @Timmyisagod, if everyone pulls out their Capital from Zenith Bank today, Zenith Bank will crash.
This was the major reason Racksterli 1.0 crashed. Investors were getting paid without putting back the money into the system. Even the CEO of Racksterli admitted to this fact in one of his live broadcast from his Official Instagram Page.
What made Investors pulled out their Capital without reinvesting? Fear, rumours, and misinformation. Who are those mainly affected by these factors? Bad Investors.
Recall that on the 7th of March, 2021, Racksterli 1.0 was inaccessible to Investors. During this time, lots of rumours and misinformation were circulated on various social media groups and channels. Who were those mainly affected by all of these? Bad Investors.
Do you know that 90% of the subscribers Racksterli had then were all ‘Bad Investors’? This was the reason why after the site came back online on 13th of March, 2021 Investors no longer felt safe keeping their Capital with Racksterli. What did they do? They pulled out immediately, and Racksterli crashed.
To save her image and reputation, the management announced to refund Invested Capital back to Investors. As at the time of writing this report, the refunding process was still ongoing.
The refunding process officially commenced on March 28, 2021.
After 7 days, Racksterli 2.0 made its debut online in order for the company to continue its business operations while still refunding Capital back to those who Invested in the old site.
The new website is swift, fast, and highly advanced; it is an upgrade on the previous website that hosted Racksterli 1.0.
The new website retained everything from the old website and simply made it better than ever. Invariably, the 11 packages were moved down into the new website.
Racksterli 1.0 paid a whopping 57% return on investment (ROI), and Racksterli 2.0 is still paying the same ROI.
This is the major reason why Racksterli will continue to attract bad investors. And these sets of investors will continue to make decisions based on misinformation, false news circulating on social media groups, rumours, and bad influences.
Take it or leave it, 90% of the investors on the new Racksterli 2.0 are all opportunists seeking to exploit the system in the short term for immediate gain.
These opportunitists will most definitely pull out their funds after two to three months of investing. And when this happens, what becomes of Racksterli again?
By the time most investors begin to pull out their Investment again, then history is repeating itself. And if this is the case, then this beautiful masterpiece called Racksterli is definitely going to crash again.
These bad investors see Racksterli as a ‘Get Rich Quick Scheme’, and there’s absolutely nothing anyone will say or do that will alter their perspective.
I have repeatedly studied the model Racksterli operates by, and it’s not different from what the banks do. The banks use a large proportion of Invested Capital to Trade while the remaining funds are used to pay those who need money.
Have you not observed what happens to Banks when there is cash scarcity? The banks will always wait for people to deposit before using same money to pay those withdrawing money. The banks are all robbing ‘Peter to pay Paul’, and this is exactly what Racksterli is doing.
Conclusively, what must Racksterli do to remain in business just like the commercial Banks in Nigeria?
First, the company must get rid of bad investors and opportunists; and one of the very best way to achieve this aim is to massively reduce the ROI on each package the company offers.
Secondly, the reduction of the whopping return on investment (ROI), which the company is still offering investors in the new website, should offer real investors the opportunity to come into the system.
Where bad investors react negatively to rumours, bad News, misinformation, and false information, good investors simply ignore speculations and rumours that are always in circulation on social media groups and channels.
Thirdly, with more good investors coming into the system, this should have a ripple effect on how Racksterli is managed and lead to better restructuring and bureaucracy in the company. Racksterli would become financially stronger, and stable.
Fourthly, with proper restructuring and bureaucracy achieved, Racksterli would be on course to achieve one her very primary target of becoming a Commercial Bank in Nigeria.
Fifthly, with Racksterli becoming a Commercial Bank, the stage is set for even more genuine and good investors to come into the system. And with more huge funds coming into the system, the company is now able to achieve her dreams and visions of making life a bit conducive for the average Nigerian out there.
In a nutshell, as long as Racksterli continue to offer huge ROI, the company will always be considered a Ponzi irrespective of her transparency, accountability and sincerity. And as long as this is the case, the company will forever continue to attract bad investors.
Why racksterli 1.0 crashed Part 2
Hmmmmmn, I had to take a long breath in acknowledgment of the realities that have been revealed in this publication.
The fact remains that no matter how thoughtful and wise a founder of a Ponzi scheme may be, no Ponzi scheme can last for too long because of the kind of investors that they attract. The investors of Ponzi schemes are reactive investors and reactive investors comprises mostly of short term investors.
The disadvantages of short term investors are ,
1. They are greedy
2. They invest with fear because of their greed
3. More than 90% of short term investors do not invest with their loose money, they invest with their capital. Some even go as far as taking loans to invest.
4. Their investment is based on the expected ROI. In most cases they are attracted to very high ROI’s.
5. They troop into an investment & troop out with speculations. This means that they are very sensitive to speculation wether it be negative or positive.. we must all remember, relate and liken these set of investors to same that trooped into the shares market in Nigeria that crashed barely 5 years after the visitation of these greedy investors. That period looked like the shares market in Nigeria has brought economic prosperity and boom to all investors and Nigeria as a whole. The positive speculations brought these greedy investors knocking at the doors of every prosperous stockbroker. Banks whom unfortunately are found to be culprits in this case, witnessed heavy withdrawal and mass exodus from savings accounts to investment in shares. Then suddenly the expected happened, various companies were falsifying documents just to prove that they pay better ROI’s in order to attract investors and this competition continued until the companies were all overwhelmed with their inability to pay the investors the actual promised ROI.
Lo and behold in reality the shares market in Nigeria didn’t enjoy up to 15years of boom before it crashed.
The truth must be said about racksterli 1.0 that it modules operando has shown that it is not different from a Ponzi scheme and wether the CEO would like the racksterli 2.0 to remain same or not is left to him and how he runs the business.
The present ROI is practically unrealistic in a long term bases even though I must also point out that it success in a short term is also hanging in a balance.
I must reiterate the fact that no Ponzi scheme last for too long and investors are usually the losers. This is because unlike banks and major finance companies in Nigeria today, the investors capitals are not protected in a Ponzi scheme. Therefore it’s always a win-win situation for the CEO’s alone.
Some of will continue to jointly sponsor bills in the house of assembly for the government include such schemes in the categories that fall into the group that investors capital must also be protected by government regulations.
This is the only way of saving investors from the untold hardship that always arises from such bad investments.