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by vietor 5557 days ago
How does "as users lost money, they just dropped off." followed by "filed for bankruptcy", mean "Smart? Definitely yes."?

I guess they did make money for a while, so it's wasn't terrible, but having a business model that makes your customers leave? I'll pass on calling that 'Smart'.
2 comments
flomo 5556 days ago
You are thinking in terms of the corporation, or the investors. However, it's a fair guess that some "smart" people personally did very well from this model.

(If you think about it, a practical definition of "scam" is something that is profitable but doesn't generate repeat customers.)

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pathik 5557 days ago
In hindsight, it is easy to see and understand how their business model didn't work out. But when they launched, it seemed to be a nice idea.

Even in casinos, the odds are stacked heavily against the player. Still, people do keep playing. Swoopo was similar. I guess it's hard to get new users when every blog calls you a scam.

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