I don't know if the "market for lemons" argument applies when a market is purely fraudulent. In that case, normal dynamics do not apply and the key question is

I don't know if the "market for lemons" argument applies when a market is purely fraudulent. In that case, normal dynamics do not apply and the key question is whether you can always find new suckers. I argued in another comment a few days ago that the answer is yes: https://news.ycombinator.com/item?id=14220491 https://news.ycombinator.com/item?id=14220491