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Why Twitter Is A Ponzi Scheme
Why Twitter Is A Ponzi Scheme
Why Twitter Is A Ponzi Scheme
Why Twitter Is A Ponzi Scheme
Why Twitter Is A Ponzi Scheme
Why Twitter Is A Ponzi Scheme
Why Twitter Is A Ponzi Scheme
Why Twitter Is A Ponzi Scheme
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Why Twitter Is A Ponzi Scheme

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Twitter is cool. And Twitter imparts its coolness onto you. If you join. But can it go on forever? …

Twitter is cool. And Twitter imparts its coolness onto you. If you join. But can it go on forever?

This presentation is a mashup of 'Ponzi Scheme' by Ralhpmon and ideas from around the web - Jaffe Juice, Alan Wolk et al.

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  • loved it :)
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  • Nice design & fun story - early adopters do ok so I don't worry ;-)
    Would Facebook, MySpace and market listed companies like Google and Apple qualify as Ponzi schemes too?
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  • WOOT! This was an awesome presentation. Nice work...
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  • genius...
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  • I think you are essentially right if some conditions apply.

    1. The users' ability to be social attraction is the same throughout the population.
    It isn't so obvious, since there are entities able to devote significant resources and quickly gain the social capital even after joining late. Put it short. The newly born isn't in social disadvantage if she has powerful parents.

    2. There is no money in the business.
    Given the business model is to sell to the buzz-word oriented crowd the services they like in the format they prefer, the late joiners will profit from those business service offers (not from each other) if the model succeeds and if the service has a critical mass of users. Put it short. If the crowd is big enough, the party-goers could suddenly have to benefit the transformation of the place into a mall. In this case the twitter is a fraud.
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  • 1. Why Twitter is a Ponzi Scheme <ul><li>Lured by the promise of Social Capital, early adopters join Twitter, which appears to be legitimate </li></ul>
  • 2. <ul><li>As subsequent adopters join, they give social capital to the site … </li></ul>Why Twitter is a Ponzi Scheme
  • 3. Twitter uses some of the incoming social capital to pay dividends to the initial adopters, making it look like a legitimate investment Why Twitter is a Ponzi Scheme
  • 4. <ul><li>These “dividends” are paid with publicity: “Great job Ashton Kutcher!” </li></ul><ul><li>“ Well done Dell customer service” </li></ul><ul><li>“ Why not follow @BarackObama </li></ul>Why Twitter is a Ponzi Scheme
  • 5. <ul><li>Misled by Twitter’s reported Social Capital dividends, other victims soon join the party. </li></ul>Why Twitter is a Ponzi Scheme
  • 6. <ul><li>Twitter keep the fraud going by paying social capital dividends to previous adopters with capital from new investors – all the while earning commissions and capital from each new investment. </li></ul>Why Twitter is a Ponzi Scheme
  • 7. <ul><li>Eventually the founder sells to Google, before disappearing with all the Social Capital (and cash). Or the scheme collapses when he can no longer keep up the charade. Either way, most investors lose social capital </li></ul>Why Twitter is a Ponzi Scheme
  • 8. <ul><li>Follow me </li></ul><ul><li>- on Twitter: @ cosmond </li></ul><ul><li>- or at www.blog.freshnetworks.com </li></ul><ul><li>With thanks to (and inspiration from): </li></ul><ul><li>- Joseph Jaffe, @ jaffejuice - And What is a Ponzi Scheme by Ralphmon </li></ul>Why Twitter is a Ponzi Scheme

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