Generally speaking, there are several reasons for running:
1. The purpose of such platforms is to cheat, fabricate information about borrowers, use high interest rates as bait, and attract investors to make large investments and then flee through false propaganda and secondary bidding. Short online time is a major feature of this kind of pure fraud platform.
2. Self-financing platform means that the borrowing items on the platform are fictitious borrowing targets of affiliated enterprises or platforms, and the raised funds are used for their own purposes. The purpose of many self-financing platforms is to raise funds for the parent company or person in charge of the platform. Once the parent company or the responsible person fails to repay the principal and interest in time, the capital chain will break, and the platform will face the danger of bankruptcy or the responsible person running away.
3. Ponzi scheme, also called "robbing Peter to pay Paul" in China, is simply to borrow the new and return the old, use the money of new investors to pay interest and short-term returns to old investors, create the illusion of making money, and then defraud more investment. The top-up amount of such platforms is always greater than the cash withdrawal amount. When the top-up amount is less than the cash withdrawal amount, the platform will fill the funding gap by releasing high-yield short-term bids such as second bid and Japanese bid. Once the platform has no continuous investment source, the entire capital chain will break, and the platform will not be far from running.