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Is there any proof of Renaissance not being just insider trading or a Ponzi scheme?
by cung 5y ago
Is there any proof of Renaissance not being just insider trading or a Ponzi scheme?
- sooheon 5y agoDoes "Ponzi scheme" just mean "bad finance thing" now? It is impossible by definition for a fund that hasn't had inflows for 30 years to be a Ponzi scheme.
- cung 5y agoThey could, for example, be buying early stage startups cheap, sell it to a friend for 3x, who sells to a VC fund for 3x, which then sells it to the public by showing huge growth. No inflows, old investors get paid with money from new retail investors and retail investors are left with a hot potato. A Ponzi scheme.
- stillworks 5y agoIt cannot potentially be Ponzi Scheme as their investors didn’t end up losing money.(The 0-sum was in the market participation) The kind of returns RenTech took, it would have to be a highly elaborate insider trading and why would a bunch of scientists want to waste their time on that ? The only thing “wonky” about RenTech was Bob Mercer’s personal political views but despite that I would still consider Bob Mercer to be a very intelligent/scientific person.