> It’s like a decentralized Ponzi scheme A Ponzi scheme is a type of fraud where someone lies about where the money paying off earlier investors is coming from

> It’s like a decentralized Ponzi scheme A Ponzi scheme is a type of fraud where someone lies about where the money paying off earlier investors is coming from - they say it comes from investment in some kind of business or other businesses, but it actually comes from later investors' investments. The stock market is transparent, it is obvious that when you buy something, part of the return will come from a later investor buying it from you - that's the whole point of buying something. It's not a Ponzi scheme if there's no-one lying about where the money comes from.