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I was cautious to come to the comments and offer my opinion, but I'm with you here, not only specifically regarding stocktwits, but this type of funding in gene
by pj 17y ago
I was cautious to come to the comments and offer my opinion, but I'm with you here, not only specifically regarding stocktwits, but this type of funding in general.
When I read that StockTwits uses WordPress which was also funded by their investors, I got visions of investing pyramid schemes. Fund a company that pays for and uses products from other companies you fund and do this over and over to build up the pyramid of investing.
I have to admit that I am not that savvy here, so perhaps that is why it doesn't make sense to me, but my personal anecdotal experience indicates that these types of investments are becoming more and more common and I am highly skeptical of their validity in the marketplace.
There is a lot of skepticism about whether or not Twitter can be monetized, so shouldn't there be even more difficulty monetizing a service built entirely on top of a difficult to monetize service? Are tweets going to have a little embedded ad from twitter and from stocktwits?
Plus, the investors are increasing their risk by investing in a company that uses a service that may itself cease to exist. The apparent trend in this kind of compounding risk from venture capitalists is not a good sign for the future in my view.