Comment by Justsignedup
4 years ago
people who bet early, made big money. people who came in on the hype lost everything. the definition of pyramid schemes.
Oh well. We'll see, it might bounce back as these things do.
4 years ago
people who bet early, made big money. people who came in on the hype lost everything. the definition of pyramid schemes.
Oh well. We'll see, it might bounce back as these things do.
Oh, by that definition, even AAPL is a pyramid schema.
How about we leave the definition for pyramid scheme where it's already at?
> Pyramid scheme: making money based on recruiting an ever-increasing number of "investors."
> Oh well. We'll see, it might bounce back as these things do.
No, it won't. It won't regain the trust of the community and the project is dead in the water now, no way it'll recover from this.
> Pyramid scheme: making money based on recruiting an ever-increasing number of "investors."
This is correct. While looking into this for a friend I came across: "for a full year, you'll earn 0.5% APY on what each person you refer deposits" [1]. Still not a pyramid scheme, since 0.5% is a small fraction of the total yield paid out, but pyramidesque.
[1] https://stablegains.zendesk.com/hc/en-us/articles/4409440197...
It's not a pyramid, it's an inverted funnel.
AAPL has physical and IP assets which could be sold to make investors whole. While I have big issues with them, they're not in the same ballpark as this 'stable' coin company or pyramid schemes.
>AAPL has physical and IP assets which could be sold to make investors whole
While they might have some "physical and IP assets", there isn't nearly enough to "make investors whole" (ie. pay them back). If you invested $100 in apple earlier this year and AAPL somehow needed to be liquidated, you're only getting a fraction of $100 back.
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So here's the thing, the difference between a pyramid scheme and a business is that in the pyramid scheme, all the wealth gets generated by selling shares to other 'investors', while in a business, all the wealth is generated by selling to customers.
Which is why one's illegal, while the other is publicly traded on the stock market.