• Palihapitiya said he decided to make drastic changes to Social Capital after becoming "fundamentally not happy."
  • The investor said he's taking Social Capital back to its roots by focusing on long-term investments.
  • Palihapitiya also criticized the start-up economy's unending appetite for growth, calling it a "charade."

Chamath Palihapitiya, the outspoken Silicon Valley tech investor, called the start-up economy a charade on Wednesday, while also addressing the current the state of Social Capital, his embattled investment firm.

"We are, make no mistake … in the middle of an enormous multivariate kind of Ponzi scheme," said Palihapitiya, at the Launch Scale conference in San Francisco.