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0 pointsjonfw4y ago0 comments

A ponzi scheme largely refers to a scheme where you invest capital to get access to the future inflow of capital, where that future inflow of capital comes from other investors who are hoping to access future inflows of capital, etc.

The difference between this and a startup is obvious- a startup intends to become financially independent at some point

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xqk84y ago

It certainly doesn't largely refer to that. It requires a central actor to defraud new investors, promise investors returns that haven't actually been realized, channel their money to pay off the old ones. If you read up on why it's named a Ponzi scheme you can understand how they work.

shkkmo4y ago

> It requires a central actor

I see exactly zero existing definitions of ”ponzi scheme” that mentions any "central actor" so you seem to be creating an entirely new definition purely to avoid the "ponzi scheme" label.

RaketenStadt4y ago

Then you didn't look at wikipedia which mentions "the con artist" and "the operator of the scheme" several times.

If you're having to google the definition of the term maybe there's still a little more you need to learn about it.

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