Schiff Calls MicroStrategy a Pure Ponzi and Bitcoin Hybrid Pyramid Scheme
BeInCrypto
Peter Schiff labeled MicroStrategy's preferred shares a Ponzi scheme, predicting Michael Saylor will eventually suspend dividends to protect Bitcoin reserves.Summary
Gold advocate Peter Schiff has intensified his criticism of MicroStrategy, characterizing the company's preferred share structure as a "pure Ponzi scheme." Schiff argues that while Michael Saylor has pledged to sell Bitcoin holdings if necessary to pay dividends on STRC shares, Saylor will ultimately choose to suspend those dividends rather than liquidate his Bitcoin reserves. Schiff believes this model, which relies on raising fresh capital to fund payouts, is inherently unsustainable and unfairly benefits early holders at the expense of new investors.
(Source：BeInCrypto)