That’s CAPITAL, not CAPITOL. Although both may apply.
Ponzi schemes have a downside where some effort is required to pay off the earliest investors. Since a pyramid scheme format is common it starts to look shadier and shadier as time goes on. What’s a grifter to do when you want to make a quick killing and then move to the safety of a nice little beach safe from extradition? You get involved in raising money to do something important, something so important and innovative that’s never been done before. Which is using that money to make you look good and making it easier to raise money. And what’s important is raising money to the point of never producing anything of value in return. Raising capital for the sake of raising capital. And pretty much keeping as much of it is possible.
The main story for today is coming up, but let’s see if any red flags come up. Somebody is raising money that’s being invested in real estate by exposing how evil the government is. And they’ve got a magic code called gematria that never produces consistent results and they ask for money to bu and pay for real estate on a daily basis. Or try this one, you haven’t paid enough attention to your eternal soul. You aren’t tithing enough and that will fix everything right up. Or this one. Donald Trump is evil, and only my podcast can shine the light on it and you need to give me money to finally stop him. Or I’m running for Mayor as a Democrat, because Republicans are obviously evil and you need to give me money.
Everybody wants money even though a common theme is the source of their solution can be pitched as their hard work and superior brain power can be the solution. For one example from the list, that Democrat mayor - doesn’t that job also have something called a salary? And haven’t you noticed that campaign funds are in the news a lot for not being used for campaign funds unless pocket lining counts?
Your Ponzi scheme may require some return to early investors. Make it look good for a while longer to get more investors googly eyed at the success of others. People that can be lured by the promise of an unrealistic rate of return who don’t have a ton of money to start up with are a dime a dozen. But going after investors with a lot of money - they tend to not be so frivolous. Having some substantial cash reserves requires more common sense (or maybe born into wealth and/or grifting themselves.) For the big score you need to raise capital with a vague product that you can just say, “Oops, sorry.” And move on to another raising capital for the sake of raising capital.
Cryptocurrency is awesome for that. But it doesn’t have to be. So here’s the abbreviated story of Nikola, also named after Tesla. Maybe on purpose named that so the false conflation of wealth with intelligence and the name Elon Musk can be dragged into the equation.
https://en.m.wikipedia.org/wiki/Nikola_Corporation
The company still exists, but at a shadow level to the glory days.
Over 2,000 a share down to $1.18. Like a major league ball player who has stats that mirror stopping using steroids, a classic pump and dump drop.
The Nikola article on Wikipedia doesn’t do justice to all the supposed shenanigans that were involved in the pump phase. At the time GM was ready to shell out 34 billion dollars, not a single operational truck had been sold. Family members with no qualifications for a hydrogen powered vehicle were on the executive board. A non working model was presented at a Ted style launch talk, because it was easy to fake the electronic display panel and frankly nobody expected a truck to be driving on a stage. But the ultimate, as confessed by a disgruntled ex employee. A promotional video of a Nikola “hydrogen powered truck” was made with the truck happily tooling along an empty stretch of highway. Able to do so because of gravity. The truck had been towed to the top of a hill and was released. Supposedly trouble with the door was solved by taping it so it wouldn’t fall off while filming.
Yes, that’s a lot of work to fake a functioning truck. But the rate of return doesn’t need to be faked for investors. The rate of return is expected to be zero. Investors left with an excuse in place of any kind of monetary reward worth talking about.
And since nobody trusts science anymore, it was financial research that finally blew the whistle and the scheme unfolded. Hindenburg Research gets most of the credit for coming out with the story two days after the GM deal.
https://pistol-forum.com/showthread.php?54656-Expose-on-the-Nikola-hydrogen-truck-scam
You really want to get into something like this. While the shit was hitting the fan claims were made that the negative press was generated by haters, not people with evidence. Doesn’t that sound like, oh, “The casinos flipped the script because they’re tired of me taking all their money!!”? Never wrong about anything. And the aftermath seems like a typical white collar crime slap on the wrist. Maybe now there’s some actual worthwhile product in the works, but do you really trust the company with that history? A history of, “So long, and thanks for all the fish!”?