Zadehkicks pre orders

[s dubl]

The guy was flexing on Insta, had terrible customer service and now we see that he was getting deeper and deeper in the red - do you seriously think he would be selling at significantly under market to be the "good guy"?

I’m going to go out on a limb here, and assume he wasn’t a customer service manager in any of his previous jobs… add that to people constantly coming at him accusing him of selling fakes, and complaining about wait times… I’d probably be grumpy too ¯\_(ツ)_/¯

 

[sneakaprince]

4. Unrealized straw that broke the camels back
This is one is even further on the speculation spectrum, but as others have suggested, something external had to have happened. Did something happen to the cannabis business that required cash to burn? Did he lose on bad bet - Crypto? Stocks? We don't know what his portfolio looks like.

any questions? let's talk

SPECULATION HERE


On the night of the announced dissolution there was a Twitter space with quite a few professional resellers. I believe someone from nice kicks and some other sneaker outlets were even on the space. It was also posted here.


Anyway there was mention of a massive chargeback from a cook group something to the tune of 500k. It was likely due to the continued delay of TS sneakers from last year.

While I don't follow alot of the cook group scenes I do know (mostly from here) that hella people have been on pins and needles about these TSs (and for good reason considering the profitability).

I hate to assume so much but it is kinda ironic that Travis possibly helped to kill Zadeh.

 

[s dubl]

How does one gain this much trust/credit from absolute strangers?

Little by little, and word of mouth… he had a successful eBay account prior to this. I didn’t know of him (that I recall) back then, so I can’t comment on that, I’m sure others can chime in… but I’d assume he was getting hit with too many fees, so he decided to go his own route to put more money in his pocket instead of eBay’s. Start selling to people via social media, person X told person Y that they came across a legit seller, and it snowballed… to what we see now, with what seemed to be a legit/successful business somewhere in between.

 

[mr s j king]

This aint Netflix. This real life.

FBI told him shut that down for a reason and it ain't because he couldn't fulfill some shoe orders

 

[1978S]

The only reason why he would do that, is because he probably thought he could keep the gravy train rolling. "Oh man, Zadeh is actually legit, cos Reseller was able to cop a FSR and flip X shoe on StockX for a profit of $XXX ea"

Seeing that, guys like me who were initially on the fence or against Zadeh then sign up to give Zadeh 0% interest free loans (lol yeah yeah i know, GOTEM you's a clown har har har, lol granted i only did it cos my brother really wants the Chi's and thought at worst I'll just ask my CC to reverse the charges nbd)

Let's break it down with a speculative example and analysis:

Let's say Joe preordered 10 pairs of TS1 lows for $500 ea. On that purchase Zadeh now has $5000 cash. We're going with this shoe as an example because that's what your question is seeking.

Sometime 6 months later, Zadeh hopes that the TS1 low drops below $500 but he's SOL cos the fiends gobble up the TS1 lows from resell markets and even his plugs don't have any spare pairs. He waits and waits but they settle on $2K on resell. What are his options then?

​

A. Issue $5K as store credit, +impact on "working capital"​

B. Refund $5K back to Joe and ban Joe, -impact on working capital​

C. Buy back order for more store credit, +impact on working capital​

D. Fulfill partial order, +impact on working capital​

​

I say working capital, because it's money that he can use to fund his other business or investments, or use to actually conduct the business of fulfilling orders.

All of the +impact scenarios leave his pockets flush with cash, but arguably the best scenario would be to try to keep customer hush hush so complaints won't spook future buyers. That option would be best done with D. By buying at least 1 pair at $2K, Zadeh still gets to keep $3K here while looking like he's trying his best to fulfill orders.

How it falls apart
But this all falls apart by a few things:

1. Too many complaints and orders where he is underwater
If he has way too many TS1 low orders to fulfill with too many people threatening to do a chargeback, and not enough preorder money on hand to cover the people complaining, then he has no choice but to buy something or refund money from his own pocketbook since there's not enough working capital from new+existing buyers.

2. Walls closing in
What s dubl was saying, with shops reopening/closing up after covid, Zadeh has even less legit pairs to obtain orders from, forcing him to buy from StockX Goat. This trend appears to be from archived StockX data from Mar 2020 to Nov 2020, increasing market value and # of items in StockX portfolio during that time. Data for 2021-2022 is not available but if it shows a tapering of buying, then you know he was basically just pocketing preorder money. The ability to read and predict sneaker valuations over time would be critical here.

3. To some degree, Nike has been putting out garbage
Nike releases (rumored and not) were straight up garbage so less new money coming up to help him keep the train going.

4. Unrealized straw that broke the camels back
This is one is even further on the speculation spectrum, but as others have suggested, something external had to have happened. Did something happen to the cannabis business that required cash to burn? Did he lose on bad bet - Crypto? Stocks? We don't know what his portfolio looks like.

any questions? let's talk

Name to post ratio =

 

[1212theory]

SPECULATION HERE


On the night of the announced dissolution there was a Twitter space with quite a few professional resellers. I believe some nice kicks and some other sneaker outlets were even on the space. It was also posted here.


Anyway there was mention of a massive chargeback from a cook group something to the tune of 500k. It was likely due to the continued delay of TS sneakers from last year.

While I don't follow alot of the cook group scenes I do know (mostly from here) that hella people have been on pins and needles about these TSs (and for good reason considering the profitability).

I hate to assume so much but it is kinda ironic that Travis possibly helped to kill Zadeh.

That would be ironic, his greed for not capping preorders probably enabled resellers to be even more greedy about TS1 preorders. $500K order is insane. Like someone was saying in here; greed begets greed.

 

[urn0tlike]

I still can’t believe that ******* moron who made that video saying he’s seen plenty of Wall Street scams and he figured this was one too but it possibly could work .

 

[1212theory]

Name to post ratio =

lol rather than discuss my lack of post count, feel free to provide an opinion or speculation to subject of this thread.

 

[206to813]

How does one gain this much trust/credit from absolute strangers?

Go to your email inbox and search “Your SNKRS Draw Results”

Tbh this BS was the best thing to ever happen to Zadeh - well til the sht blew up lol

Nike made it impossible to cop

 

[1978S]

lol rather than discuss my lack of post count, feel free to provide an opinion or speculation to subject of this thread.

You wrote a novel (a theory). I made a joke. Take it like a man and move on.

And who said anything about post count??

 

[sneakaprince]

That would be ironic, his greed for not capping preorders probably enabled resellers to be even more greedy about TS1 preorders. $500K order is insane. Like someone was saying in here; greed begets greed.

Hype kills man.

Some of us were guessing that the Chicago 1s mightve been the exit plan (even though I doubt he planned when he would have to turn turn the light off).

If he was on some real finesse **** and knew the feds were on him the TS1s we're probably the perfect sneaker to call it quits on. He over promised and under delivered for sure on those.

 

[cobrab19]

I think he most understood what you wrote

 

[jttegx]

EMAIL NEWSLETTER UPDATE:

 

[dannyarcher]

Sometime 6 months later, Zadeh hopes that the TS1 low drops below $500 but he's SOL cos the fiends gobble up the TS1 lows from resell markets and even his plugs don't have any spare pairs. He waits and waits but they settle on $2K on resell. What are his options then?

This is a very unrealistic scenario, given Zadeh has been in the game for 10 years or so, and if you believe what others say on here, he had plugs that could source him these authentic pairs for under what he was selling to people. Anyone with that type of experience and connections is not going to underestimate a pair like that and to that extent. In fact, most people in the sneaker game buy assuming the prices go up over time, not down.

How does one gain this much trust/credit from absolute strangers?

Rent a Lambo and mansion.
Flex it on Insta.
Tell people (kids) they too can be rich if they buy your product/service.

 

[1212theory]

You wrote a novel (a theory). I made a joke. Take it like a man and move on.

And who said anything about post count??

Lol bro it’s all good. I laughed at your joke too Geeze.

For the record though, ratios typically involve quantities like numbers. Like you know, the amount letters on my handle to post count or to letters used in my novel lol

 

[ill4eva]

I don’t think the FBI is involved because of counterfeit shoes. I think they’re here for money laundering.

 

[sneakaprince]

I don’t think the FBI is involved because of counterfeit shoes. I think they’re here for money laundering.

Interesting take.

Marty McBride **** with sneakers.

 

[1978S]

For the record though, ratios typically involve quantities like numbers. Like you know, the amount letters on my handle to post count or to letters used in my novel lol

Indeed, in real life. But not on message board vernacular within my particular context.

 

[urn0tlike]

I don’t think the FBI is involved because of counterfeit shoes. I think they’re here for money laundering.

Either they been on it for a while and finally took him down or someone with a lot of money invested and knows people put a word in.

 

[dannyarcher]

I still can’t believe that ****ing moron who made that video saying he’s seen plenty of Wall Street scams and he figured this was one too but it possibly could work .

Guess he achieved his goal lol

 

[urn0tlike]

I can’t help but just looking at him. The V neck with the baby chain. The typical hypebeast setup in the background. The guy tried to sound smart saying he knows all types of scams while also sounding completely stupid for falling for this one .

 

[URHere]

I don’t think the FBI is involved because of counterfeit shoes. I think they’re here for money laundering.

I think some people are really hoping he sold fakes so they can say "I told you so"

 

[spoonmanofthehour]

I think some people are really hoping he sold fakes so they can say "I told you so"

How come no one can get to the bottom of this? lol

 

[mattva]

I don’t think the FBI is involved because of counterfeit shoes. I think they’re here for money laundering.

I speculate neither: It’s straight-forward fraud. I wasn’t really watching this thread page-by-page (thank lawd), but the site offered “preorders”? The intent of a preorder -in general- is so a business can get a headcount of how much inventory to order: that’s why they’re dominant in the video game industry and game retailers: so a store isn’t purchasing 200k of soft/hardware no one will buy. Not really a preorder when you’re using buyers fund on a chance to get the shoes your buyer ordered, then only offering a credit on another chance and no full refund if he doesn’t procure the order.

 

[1212theory]

This is a very unrealistic scenario, given Zadeh has been in the game for 10 years or so, and if you believe what others say on here, he had plugs that could source him these authentic pairs for under what he was selling to people. Anyone with that type of experience and connections is not going to underestimate a pair like that and to that extent. In fact, most people in the sneaker game buy assuming the prices go up over time, not down.



Rent a Lambo and mansion.
Flex it on Insta.
Tell people (kids) they too can be rich if they buy your product/service.

Agree, time gives sneakers time to go up, especially sneakers like TS, Union, OW etc till the bubble pops.

But for conversation sake, here's Zadeh's preorders:

TS1 preorders. Retail Release was on 5/11/2019 (StockX)
$400/Jan 2019,
$800/April 2019,

StockX Chart for price history

So with his 10 years of experience, he determined that a preorder at $400 and $800 was fair. Even with early pairs, the first sell of my size in StockX's dataset is around $1800 in Feb 2019. Zadeh thought consumers weren't going to pay anywhere near that hence $400/$800 preorders. As you can see in the chart above, the market eventually set the minimum floor resell of $921 on StockX data. Looks like sometimes even with X years of experience, the "experts" get it wrong.

**So you can see how fast and far underwater he can be with drops like TS1s. TS1, TS1 frags - those $500K orders probably buried his business -->insolvent.