alt Hacker NewsI don’t think you understand how startups work.
In startups 2x isn’t enough, you usually expect 100x or 1000x returns. That’s the main idea behind investing: You give your money to someone who may have better use of it so you may get it back multiple but may also lose it.
As for the website you linked it appears to be promoting a trading bot and I don’t see any promise of guaranteed 2x returns, which would have been a scam. Maybe I missed it, can you point it out?
No, I do know how they work. Normal startups close the second they become unprofitable because investors don't like losing money. Or find someone that's willing to pull your sinking ship up (a buyout). Also, if you intentionally lose investors' money, they have the right to sue you for damages. Losing hundreds of thousands of dollars is pretty normal in failing startups, but it's not like they don't have any value. There's a difference between a half-baked legitimate product and a snake oil. However, losing tens of millions of dollars is not normal.
> guaranteed 2x returns, which would have been a scam
They haven't written 2x, but they have promised profits (which is more than 1x): "Sit Back and Watch Your Wealth Grow". That's literally a Ponzi scheme. They're no Medallion Fund because if the algorithm was actually working they wouldn't need to attract people to get more money.
Maybe you should get off HN from time to time and face a reality check.