Quote:
Originally Posted by vindictive27
My overall opinion of Lock? I think they got in over their heads with expenses and at some point used player funds. It probably become a pattern and a continual habit to tap into player funds unfortunately to cover expenses that they forecasted to easily replace. And then at some point, they must have realized they miscalculated and that they screwed themselves hardcore, but that they're trying to continue running a legitimate business moving forward as they once did. I think they made bad financial investments (in expansion, Fair Play Tech., Pro contracts, etc.) and they're paying for it now in reputation from using the funds towards said expenses, just like we as players are paying for it in wait-times. But in my truest opinion, they've had bad times now to the point where if they were a Ponzi moving forward, I think they would have given up already from a pure profit standpoint. Figuring out a way to decrease withdrawal wait times is their only savior in my eyes.
This is probably very close to the truth. Bernie Madoff did not start out as a Ponzi scheme in the purest sense (Ponzi= no actual business behind it). He had a legit business, made money at first, suffered losses, reported phony gains, tried to double up to make up for losses, the market turned against him big time, and then it was impossible to recover, so he became a Ponzi scheme with phony account statements et al. Yet, he was sending out withdrawls right up until he was shut down.
The problem for Lock is if and how much player deposits were spent? If they did not spend player $, there is no problem. If they did, it becomes a matter of how much. Do they make enough in new deposits and rake to cover the current withdrawls and replenish any deposits that were spent? What do the current facts indicate to you?
1- Fewer people looking to deposit.
2- Traffic seems to be way down, so rake has to be down
3- Withdrawls and wait times are increasing
Those 3 things seem to answer the question. Not to mention the lack of transparency, pros jumping ship, lack of communication from management, poor service, and fund rates declining to .25. Amirite?
Last edited by Bictor Vlom; 07-16-2013 at 01:11 PM.
Reason: Shane is a weasel.........................