stifle
P2P is purely greed. When it first came out, many people have pointed out the danger of such financial products. My dad was approached by someone to invest money into P2P. I told him that any investment that guaranteed over 10% of annual return is a Ponzi Scheme. At that time, the few that suggested to regulate the industry were overwhelmed by netizens and bots of how China is stifling innovations.
People have short memory. Just recently Xi came out strongly and regulated Ant but how many netizens are crying that China is stifling innovations and Xi is doing this to crush anyone dare to speak up against him. Same thing with Anbang using short term insurance products to siphon money from the public but most people still resent Xi for cracking down the big 4. Most people just care about their short term returns.
Eggshell is like the tech bubble in the late 90s and even successful companies today such as Pinduoduo are byproducts of such scheme. Someone came up with an innovative way to do business using the nets, investors pour in the money, new company grew in exponential rate but losing a great deal of money, the new company needs to convince more investors to invest. The hard part is if the founders can continue to convince more venture capital to invest before the IPO and the growth rate can be maintained. If not, then the company needs to show that it can cut losses and turn a profit.
For Eggshell, it is a fine idea but it is structured in a way that can't turn a profit. Not turning a profit is fine as long as long money kept pouring in and the growth rate can be maintained. However, Eggshell is financial innovation not a true net company. Eggshell took over a rental property by offering a too good to be true monthly rental price for the owner, then took a lump sum payment at a great discount from the tenant. Eggshell then used the money to invest. It is clearly a financial innovation not a technology company so a Ponzi scheme since it is too good to be true.
The problem with Eggshell is not only because it is a financial innovation but also it put itself into an industry that could cause great disruptions to the society. It is the fault of the regulators not to intervene earlier since rental market should have been more regulated.
P2P is purely greed. When it first came out, many people have pointed out the danger of such financial products. My dad was approached by someone to invest money into P2P. I told him that any investment that guaranteed over 10% of annual return is a Ponzi Scheme. At that time, the few that suggested to regulate the industry were overwhelmed by netizens and bots of how China is stifling innovations.
People have short memory. Just recently Xi came out strongly and regulated Ant but how many netizens are crying that China is stifling innovations and Xi is doing this to crush anyone dare to speak up against him. Same thing with Anbang using short term insurance products to siphon money from the public but most people still resent Xi for cracking down the big 4. Most people just care about their short term returns.
Eggshell is like the tech bubble in the late 90s and even successful companies today such as Pinduoduo are byproducts of such scheme. Someone came up with an innovative way to do business using the nets, investors pour in the money, new company grew in exponential rate but losing a great deal of money, the new company needs to convince more investors to invest. The hard part is if the founders can continue to convince more venture capital to invest before the IPO and the growth rate can be maintained. If not, then the company needs to show that it can cut losses and turn a profit.
For Eggshell, it is a fine idea but it is structured in a way that can't turn a profit. Not turning a profit is fine as long as long money kept pouring in and the growth rate can be maintained. However, Eggshell is financial innovation not a true net company. Eggshell took over a rental property by offering a too good to be true monthly rental price for the owner, then took a lump sum payment at a great discount from the tenant. Eggshell then used the money to invest. It is clearly a financial innovation not a technology company so a Ponzi scheme since it is too good to be true.
The problem with Eggshell is not only because it is a financial innovation but also it put itself into an industry that could cause great disruptions to the society. It is the fault of the regulators not to intervene earlier since rental market should have been more regulated.
