Judge Hardcase's avatar
Judge Hardcase 5 months ago
By design, it's never the intent to fully justify (or even come close) the crazy paper valuation with real assets. The intent is to marginally acquire more real assets to directionally attract more capital despite the overvaluation. The perpetually growing underlying assets from new capital allows earlier investors to benefit from later investors, and so on. The name for this is "pyramid scheme".

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Judge Hardcase's avatar
Judge Hardcase 5 months ago
PS. When you actually promise shareholders a dividend; so, you sell even more new shares so you can keep that promise to the earlier shareholders, and so on; then, that's called a "ponzi scheme".