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A Ponzi scheme is is where the operator pays returns to its investors out of the money brought in by new investors. That is not what is going on here. TradeMo
by deweller 12y ago
A Ponzi scheme is is where the operator pays returns to its investors out of the money brought in by new investors. That is not what is going on here.
TradeMore lends your money to borrowers who then pay the money back with interest. That is where the profit comes from.
If only 2 people use the system (1 lender and 1 borrower) the model still works. It does not depend on new investors to pay profits to previous investors.
- runako 12y ago>>> TradeMore lends your money to borrowers who then pay the money back with interest. That is where the profit comes from. Isn't that the traditional definition of a bank? Curious how you're able to circumvent the UK regulations that would appear to require registration as a bank.
- nether 12y agoNot really. They don't do personal savings accounts. It seems to be just like Lending Club except using BTC.