Post
Topic
Board Service Discussion
Re: Was MT Gox just a ponzi?
by
coinbuyer2580
on 26/02/2014, 03:40:22 UTC
So many people just love to use words like ponzi scheme and pyramid scheme, but really dont know what they talking about, no way Gox was a ponzi scheme.

A ponzi scheme is where a scammer pretends to have some super profitable investment scheme and promises poeple huge profits if they buy a share in his company or bonds or investment fund or whatever, while in fact all he is doing is paying the old investors with the money coming in from new investors and when the moment comes he can not find any more new investors the whole thing will just collapse like any pyramid scheme.

How does this resemble anything GOX did ? It does not

MT Gox was openly allowing people to trade an item that did not exist. The were obviously paying withdrawals from fresh deposits since they were missing more than 700 000 coins that were still being traded. That is a ponzi my friend.