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When financial instruments like this collapse it doesnt mean money turned to thin air. Rather it means money changed hands. The people who created and sold thi
by joko42 4y ago
When financial instruments like this collapse it doesnt mean money turned to thin air. Rather it means money changed hands.
The people who created and sold this asset probably ended up richer . And average people who bought the hype, sadly, poorer.
- JumpCrisscross 4y ago> it doesnt mean money turned to thin air Of course it does. Wealth becomes money through credit. It promotes spending through the wealth effect [1]. [1] https://en.m.wikipedia.org/wiki/Wealth_effect https://en.m.wikipedia.org/wiki/Wealth_effect
- yieldcrv 4y agoIn this case it is just a redemption of money There are some investors that bought SPAC shares and warrants at a premium, who are now at a loss, but primary issuance investors are just made whole.
- JumpCrisscross 4y ago> it is just a redemption of money Plenty of secondary buyers lost money. To say nothing of everyone who owns Circle.
- EGreg 4y agoWait which Circle? I remember a decade ago Circle being a startup where VCs all invested like $30M in an early round and a month later the entire startup went bankrupt. That Circle?
- yieldcrv 4y agoNot that circle This circle doesn't need to go public, just jumped at the opportunity to have SPAC dumb money
- rawrawrawrr 4y agoChamath Palihapitiya is one of the main perpetrators of SPACs.
- yellow_lead 4y agoAn expert at pumping and dumping on his followers
- voz_ 4y agoThe true criminal class.
- TylerE 4y agoZ’
- lmm 4y agoSPACs are a rare positive exception to that usual logic. The people who bought in get their money back, the "sponsor" (usually a financial engineering company) is the one who loses out.