REFLECTING ON CHINMARK
Do you really understand how investment schemes that operate on ROI work? They all come to an end. Even if you have good intentions with the business, at some point you will no longer be able to pay your investors as they are constantly increasing in number and capital. This is because the profit you make from your so called business cannot pay these ROIs anymore.
At this point you will be forced to start paying these ROIs from new investors capital. Then you will need more investors to pay more ROIs. This now turns into a PONZI scheme. All you are doing is accumulating debt. No matter how many years you operate like this, there comes a point where you can no longer pay. That is where it crashes.
Now imagine Chinmark from my research has over 10,000 investors. Each with a minimum capital of 500,000 and they can go as high as 100,000,000 per investment. Their ROI is 4% monthly. Now tell me, what kind of business are you doing to keep paying 4% of a minimum of 500,000 capital to more than 10k investors long term?
Even shareholders of big companies know they could loose and gain depending on the performance of the company, but these schemes guarantee you of your ROI without considering how the company performs, that's a red flag. You don't even have the financial statements of the company as a stakeholder, that's another red flag. A company that continously accept investors looks shady and its another red flag. A company is not supposed to exceed its capital investment, that means new investors can not get in, unless someone sells you their own shares of part of their shares.
Cheers as we wait for the 19th
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