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>

<ul><li>As subsequent adopters join, they
give social capital to the site … </li></ul>Why Twitter is a Ponzi Scheme

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

<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

<ul><li>Misled by Twitter’s reported Social
Capital dividends, other victims soon join the party. </li></ul>Why Twitter is a Ponzi Scheme

<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

<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

<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