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Does "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.
by sooheon 6y ago
Does "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.