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It'll never end......whatever people can do to get ahead. Step on as many people as they can. Greed is a drug
Zadehkicks pre orders
- Thread in 'Jordan Brand' Thread starter Started by 224917,
- Start date
It'll never end......whatever people can do to get ahead. Step on as many people as they can. Greed is a drug
This doesn’t make sense for him to do. I think you’re taking the “stock” part of it too literal. Dudes not buying off StockX to fulfill orders, he would be making such little profit if he even makes profit by doing that. More likely used the pre-order money for his lifestyle regardless of being able to fulfill orders.*Edit: Whether or not he intentionally took on a short position, the end result is that the TS releases worked themselves out so that he effectively put himself into a crippling short position. He simply because he couldn't afford to buy any TS releases since resell had gone too far up to cover any orders in any capacity. Obviously his business model is not to be short on anything, because being short would open the business to be killed by any of general release during these 10 years. Someone else speculated the TS Frags being the straw that broke the camels back; this is how that might have happened.
See break down below.
My hypothesis
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.
Reality
Zadeh let Joe preorder those 10 pairs as early as Jan 2019 for $400/pair. Then $800/pair. If Joe were a real person, he bought 10 pairs for a total of $4000. Zadeh now has a liability of $4000 on the books, or $4000 on hand to buy product on StockX.
My hypothesis cont.
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?
Reality:
Typically after official release, shoe resell prices drop from initial sales on recorded StockX data. I hypothesized 6 months later (arbitrarily said 6 months btw), the resell price of a shoe may provided a window to purchase shoe at a price near his estimated preorder price, eg ~$500 in the example.
Using real StockX data, if you add 6 months to the preorder date of Jan 2019, that puts you to June 2019, one month after official retail release. The price in that time went from the bottoms of $921 to ~$1500 (June 2019 stockx price in my size).
So if he let Joe preorder those 10 pairs @ $400/ea on Jan 2019, then Zadeh has $4000 cash to buy - not enough to even profit, that's under breakeven after fees shipping etc.
If he bought any time within the timeframe of 6 months after official release:
Math in steps:
If he bought at the lowest price anytime 6 months prior to official release of May 11, 2019:
- $4000 cash in hand from Joe's 10 pair preorder
- Because Zadeh never had any on hand, he has to market buy these on StockX. Lowest market price around May 30, 2019 in my size is ~$974.
- If Zadeh buys those 10 pairs of Joe at $974, Zadeh now has a loss of:
- $4000 - ($9740) = - $5740
- if Joe had preordered at $800, Zadeh still down $1740
No matter how you slice it, his short position blew up because the shoe didn't go down on resell. He under priced (UNDERESTIMATED FUTURE RESELL PRICES), AND oversold (UNDERESTIMATED FUTURE DEMAND) all TS releases. Take this one single buyer, now multiply that by number of buyers, multiply that by number of shoes per order, and then multiple by the number of TS Jordan releases (4: OG TS1, OG TS1 Low, TS Frag High, TS Frag Low).
- $4000 cash in hand from Joe's 10 pair preorder
- Lowest price prior to official retail release was $921 in my size, on May 6, 2019
- If Zadeh buys those 10 pairs at $921, Zadeh now has a loss of:
- $4000 - ($9210) = -$5210
- if Joe had preordered at $800 instead, Zadeh still down $1210
That's easily how he is under millions in liability, he let the kids have at it at the froyo machine by ordering too much. When it came time to fulfill, ain't no way he going to market buy to fulfill ALL TS orders.
Let me know if you need me to clarify anything.
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Just speculation on the TS level hyped stuff. In order to keep the gravy train going, he has to fulfill orders or fulfill partial orders to keep people happy or at bay from coming to his warehouse for example.
The Twitter post took a look at his wife’s account, showing she had been purchasing off stockx from 2018-2020 (data after 2020 is not available). Her portfolio was increasing in value as well as increasing in number of items during that stretch of time. The Twitter post deduced that she buying items not just to on them, but to fulfill ZK orders.
Obviously with a shoe like any of the TS orders, he wasn’t going to fulfill those orders by buying off of stockx since they ballooned too high in value after release.
My assumption is that he didn’t intend to quit this year, after all this scheme has worked for large part of those 10 years or so years he’s been in business. But people coming to his warehouse and threatening over presumably orders of 500 pairs of TS probably gives him motivation to stop. Those orders had shoes with one of the highest unit preorder prices, and he probably didn’t cap the order quantity either. So if he was taking preorders of OG TS 1 for $400 or $800, that’s 2500 pairs or 1250 pairs ordered for him to raise $1 million. See how quickly he can incur millions in liability on just TS releases alone?
Obviously he used the preorder money to pay for his IG lifestyle.
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Well..this thread aged well lol,
suppose we were all young and naive at one point. Hopefully this never gets closed or removed to serve as a reference point for sneakerheads to approach resellers the platforms and manufacturers themselves with caution.
Never doubt the potential of things going on behind the scenes and never provide those unworthy blind loyalty.
suppose we were all young and naive at one point. Hopefully this never gets closed or removed to serve as a reference point for sneakerheads to approach resellers the platforms and manufacturers themselves with caution.
Never doubt the potential of things going on behind the scenes and never provide those unworthy blind loyalty.
D_eezus
formerly zombifed nach0
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If it’s Zadeh or another seller(s) need them to tank
GS mochas and those Taupe Haze 4’s
i’ve also noticed a few other shoes with last sales a least $100 less then normal.
Zadeh or Misha if you’re in here. Keep it going
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i’ve also noticed a few other shoes with last sales a least $100 less then normal.
Zadeh or Misha if you’re in here. Keep it going
I'm not buying that it's from him. I think it's more from the stock/crypto and our economy doing terrible and maybe all the buyers who bought from zadeh are trying to liquidate due to the scheme and economy doing bad.
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most of those dudes buying in bulk from Zadeh was using those amex business cards and now that they know they're out alot of money it's fire sale time,.
D_eezus
formerly zombifed nach0
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If it’s Zadeh himself, The Amex card guys, the crypto/stock, recession. i’ll take it
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Same thing happened to me. Got shipping confirmation for a couple pairs of OW2's and Blue Marina 1's but only received one pair of 1's and the others got cancelled. I'd rather the kicks than the refund if I'm being honest.
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The internet can solve a murder in 72hrs, but in 10yrs nobody has been able to identify who was ZK source for 10s of thousands of pairs of tier 1 and tier 2 shoes?
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If everyone knew his source, wouldn't everyone just buy from the source? At the very least, we'd see more copy cats trying to do preorders like him, but most of the ones I see do early pairs and not wait 3-6 months beside a few and the few might of been just sourcing for zadeh themselves and copying his business.
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My theory is his real plugs and whatever contact he had at Nike evaporated, but he also was a dumb *** who way oversold.
We can all argue till we're blue in the face about fakes, and I'm sure if he was sourcing through SX/GOAT that some slipped through, but if he was actually pushing a notable amount of reps, we'd have heard about it already. And also you'd figure unless something happened to the rep factory he worked with....he could have just continued ordering fakes
We can all argue till we're blue in the face about fakes, and I'm sure if he was sourcing through SX/GOAT that some slipped through, but if he was actually pushing a notable amount of reps, we'd have heard about it already. And also you'd figure unless something happened to the rep factory he worked with....he could have just continued ordering fakes
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Now that Zadehkicks is no more..who is next in line for preorders?
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Honestly, I would hope people would learn from this and not fall for pre-order bs, but we all know people still gonna get scammed trying to come up
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Good luck tracking those $s. Been laundered through crypto currencies and off shore acts so many times.
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Hyperroyals went from 410 ish in a 9.5 to 309 since Zadeh got busted.
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University 1s as well, were 420+ now 330.
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Well, they were kinda trash to begin with…
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Bizarre for sure. When the news hit, I noticed University Blue 1's in a 10 had 16 for sale at the lowest ask price on StockX. From what I've seen on StockX, there's usually a single digit number of lowest asks or just a single lowest ask, probably indicating that the seller is an individual.
But I thought weird to see 16 University Blues in my size at ~$338 at once. Something like this doesn't seem right either: 37 pairs of these bricks at the same lowest ask.
Sure you can make the case that they're bricks, but again, from what I've seen I usually see at least one pair deviating a buck from the low asks, like these bricks:
Could be the receiver dumping the Hazes but who knows, still weird to see.
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Kodak.
sneakaprince
Supporter
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I'm hoping we hear something on the PayPal front today. I don't believe they've released a statement but I know there's been some meetings to discuss how they will cover buyers and what their response to each claim should be.
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I filed my claims last week and if it doesn't go my way I'll file a charge back with my CC.
I'm well within the 180 days.
If you filed a claim on the day this broke he has till Friday to respond. I wouldn’t plan on seeing the money from them anytime soon.
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