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That doesn't make it a ponzi, otherwise offering corporate bonds at higher interest rates would also be a ponzi.
by errantmind 4y ago
That doesn't make it a ponzi, otherwise offering corporate bonds at higher interest rates would also be a ponzi.
- adam_arthur 4y agoUsing new user deposits to pay off old users is a ponzi. Issuing bonds to pay off old debt is not a ponzi because the premise that you will lose your money if the company defaults is known and evaluated up front. And the yield on the bond is commensurate with the risk. There is no reasonable expectation that an exchange will gamble and possibly lose the money you deposit