At the beginning of September, 2017, one of my friends sent me a PDF presentation from apparently a new company known as MyLifeChange247, that offers new and sustainable world wide donation exchange program that gives a 75% monthly compounded growth by offering peer-to-peer global funds exchange.

This sounded too good to be true! It made so curious. I really wanted to find out how one can gain 75% monthly growth rate from an investment. I read all the 26 pages of the PDF presentation. I also read more information about this company online.

In a nutshell, the system works by allowing members to create dreams. A minimum amount per dream is ZAR200. A dream has maturity periods ranging from 1 month to 6 months. For instance if one creates a dream of ZAR200 and sets the maturity period to 1 month, the final amount which other members, who are also creating their dreams, will donate to you is ZAR350.

If you create a dream of ZAR20,000 and set the maturity period to 6 months, the amount of money that you will receive becomes ZAR574,458. The ability to turn small amounts of months into astronomical amounts is making the MyLifeChange247 network spread like a wild fire in South Africa and Namibia.

Many people are joining this network and creating dreams everyday. I have heard about one lady in Oshakati, Namibia, who created a dream of ZAR12,000 and ended up getting ZAR344,674 after 6 months. The company does not collect any funds; members deposit funds in each other’s accounts directly. Transactions can also be completed by using Bitcoin.

Not to be left behind by events, I also set up my account with the MyLifeChange247 network. I don’t set up huge dreams for fearing of suffering big losses if the system crashes. One young friend of mine, who stays in Johannesburg, told me that he lost a good sum of money to such a system a few years ago.

MyLifeChange247 is resonating well with the grassroots simply because their system is very simple and there are immediate results. As expected, not all people are, however, excited by it. Some say it is a ponzi scheme.

My take is that it is an innovative way of crowdfunding. For so long, we have lived peacefully with raffle draws and SMS- based competitions, where people put in money expecting to win that big thing but only less than 1 % of the players win, thereby leaving huge amounts of money to the organizers.

We are also used to those systems, where two or more people put together money monthly basis in order to help each other with bigger sums of money in order to do meaningful investments. So why should there be a problem with this social media based system of trying to raise money, where all participants are getting something out?

The only concern that I have with MyLifeChange247 is that the monthly interest rate of 75%  is way too high. I don’t think it will be sustainable in the long run. Time will come when it will crash simply because there won’t be enough money to pay those maturing dreams.

The best interest rate should have been a dynamic one. They should have put the monthly interest rate in a range of say 5 % to 75 %. An automatic intelligent systems based algorithm would be used to fix the monthly interest rate dynamically at any point in time.

By so doing, the interest rate would go down if the amount of funds in the new dreams that are being set up is low. When the amount of funds is picking up, the interest rates would also go up. That way, there would be some sustainability in the system.

The current setup is too rosy but it is too risky. I, therefore, advise those people who are creating dreams not to get carried away by the ongoing buzz. Join MyLifeChange247 and create dreams with only those amounts of money which you can easily do without should the system crash.