[joko42]

When financial instruments like this collapse it doesnt mean money turned to thin air. Rather it means money changed hands.

The people who created and sold this asset probably ended up richer . And average people who bought the hype, sadly, poorer.

[rawrawrawrr]

Chamath Palihapitiya is one of the main perpetrators of SPACs.

[yellow_lead]

An expert at pumping and dumping on his followers

[voz_]

The true criminal class.

[TylerE]

Z’

[JumpCrisscross]

> it doesnt mean money turned to thin air

Of course it does. Wealth becomes money through credit. It promotes spending through the wealth effect [1].

[1] https://en.m.wikipedia.org/wiki/Wealth_effect

[yieldcrv]

In this case it is just a redemption of money

There are some investors that bought SPAC shares and warrants at a premium, who are now at a loss, but primary issuance investors are just made whole.

[JumpCrisscross]

> it is just a redemption of money

Plenty of secondary buyers lost money. To say nothing of everyone who owns Circle.

[EGreg]

Wait which Circle?

I remember a decade ago Circle being a startup where VCs all invested like $30M in an early round and a month later the entire startup went bankrupt.

That Circle?

[yieldcrv]

Not that circle

This circle doesn't need to go public, just jumped at the opportunity to have SPAC dumb money

[lmm]

SPACs are a rare positive exception to that usual logic. The people who bought in get their money back, the "sponsor" (usually a financial engineering company) is the one who loses out.