Very interesting point. The investors and the general public loose their money. where is all the money going? In the end the only party in profit is the founders & CEOs and top management. I guess everybody in the top management realizes that they will be doomed and everyone just focuses their energy on developing personal assets.
"In the end the only party in profit is the founders & CEOs and top management."
Well... this includes everybody who had vested twitter stock after they went public and had strike price lower than sellable stock price (outside of any lockdown periods etc.). Twitter's stock price was doing pretty well during 2014. I'd bet at least 100's of early employees had significant cashout opportunities.
