Where does all the cash come from? It came from the customers themselves! People buying hashlets directly, their 10% cut of market sales, hashstaker sales, etc.
No, that would be a Ponzi scheme, almost by definition.
No... that's called
business. All business tries to keep their existing customers to keep a steady stream of money coming in. Getting new customers is harder. Ponzis do it by making outrageous claims (yes, I already know what you are going to reply here.)
GAW has setup a business where they get people to continuously re-invest... that's business school 101.
Sigh.
Clearly you do not understand what a Ponzi is. While I hate feeding trolls, it would be sad if anyone read your post and thought you made a point. If this is what you learned in b-school, you should ask for a tuition refund.
The very definition of a Ponzi scheme is that old investors are paid profits from the (new money) provided by subsequent investors.
IF that is what is going on at GAW, its a Ponzi pure and simple. Note that I am not saying that is what GAW is doing, but you are saying it is and if you believe that you should run.
From the U.S. Securities and Exchange Commission:
A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors .... In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors to create the false appearance that investors are profiting from a legitimate business."
See
Ponzi SchemesHere is educational reading from the U.S. Securities and Exchange Commission, FTC, Forbes and Wikipedia that I posted months ago in the old thread:
What are some Ponzi scheme "red flags"?
Many Ponzi schemes share common characteristics. Look for these warning signs:
1. High investment returns with little or no risk. Every investment carries some degree of risk, and investments yielding higher returns typically involve more risk. Be highly suspicious of any "guaranteed" investment opportunity.
2. Overly consistent returns. Investment values tend to go up and down over time, especially those offering potentially high returns. Be suspect of an investment that continues to generate regular, positive returns regardless of overall market conditions.
3. Unregistered investments. Ponzi schemes typically involve investments that have not been registered with the SEC or with state regulators. Registration is important because it provides investors with access to key information about the company's management, products, services, and finances.
4. Unlicensed sellers. Federal and state securities laws require investment professionals and their firms to be licensed or registered. Most Ponzi schemes involve unlicensed individuals or unregistered firms.
5. Secretive and/or complex strategies. Avoiding investments you do not understand, or for which you cannot get complete information, is a good rule of thumb.
Issues with paperwork. Do not accept excuses regarding why you cannot review information about an investment in writing. Also, account statement errors and inconsistencies may be signs that funds are not being invested as promised.
6. Difficulty receiving payments. Be suspicious if you do not receive a payment or have difficulty cashing out your investment. Keep in mind that Ponzi scheme promoters routinely encourage participants to "roll over" investments and sometimes promise returns offering even higher returns on the amount rolled over.
FURTHER READING:
http://www.consumer.ftc.gov/blog/telltale-signs-pyramid-schemehttp://www.forbes.com/sites/investopedia/2014/03/18/what-is-a-pyramid-scheme/http://www.sec.gov/answers/pyramid.htmhttp://www.sec.gov/answers/ponzi.htmhttp://en.wikipedia.org/wiki/Ponzi_scheme
