Can someone explain why these tweets about Football Index's business model are wrong?



  • https://twitter.com/Carrera757/status/1350904855234285570

    https://twitter.com/Carrera757/status/1350911403595595776

    Can someone explain how without constant source of new deposits its possible for investors to make money on their investments while FootballIndex also still makes enough money to pay for costs?

    Because an investment that requires constant source of new money is usually called a ponzi scheme



  • @NewUser3235 just... Eurgh! Enough now.. please!



  • @Ole-ole said in Can someone explain why these tweets about Football Index's business model are wrong?:

    @NewUser3235 just... Eurgh! Enough now.. please!

    That's an interesting rebuttal but hasn't really answered my question



  • So you joined a day ago, but changed the user name to a lower number to make it look like you joined a long time ago... (the new usernames go up in order of joining)

    Hmm. Not dodgy at all..



  • @o_O said in Can someone explain why these tweets about Football Index's business model are wrong?:

    So you joined a day ago, but changed the user name to a lower number to make it look like you joined a long time ago... (the new usernames go up in order of joining)

    Hmm. Not dodgy at all..

    I just went onto this forum to ask this question, haven't fiddled with my username or done anything deceptive. Can you answer my question and explain the business model works?



  • @NewUser3235

    I think there are a few unknowns in regards to how FI generates income.

    FI has a subsidiary with funds allotted for the in-house liquidity provider LP001. We are not really aware of what this aspect of the operation is, and whether it is a profit generating entity.

    In essence via LP001 the house can buy back and burn shares to control the market supply, or buy back and re-list higher up the ladder to generate profit in the same way a market maker or a punter would.

    My personal feeling is that the funds for LP001 to provide significant liquidity to the market have not been provided to anywhere near the required extent to sustain the transition into order books. This has created a downward spiral driven by fear, That said it is probably quite favourable for LP001 - if it is behaving like a market maker then what is not to like about buying low to sell higher at a later date?

    This is one potential income stream that is rarely taken into account as no one really has any idea how LP001 functions. There are however several references made to it by FI in their comms so it clearly plays a significant role in the business model, and is probably not taken into account in the twitter thing, but then again how could it be as no one really knows much about it!

    Possibly does not help but food for thought I guess



  • @NewUser3235 Primarily, they get revenue by minting shares and commission on sales/bids. Granted in recent times not so much minting shares, but I’m sure the next announcement will address that. Ie make the players more attractive, less people willing to sell so FI can sell at higher a prices. In summary, you buy a share off FI, and you’re bet is they’ll win more divs than what you pay, or sell in process obviously.



  • @Chilling-Rick said in Can someone explain why these tweets about Football Index's business model are wrong?:

    @NewUser3235 Primarily, they get revenue by minting shares and commission on sales/bids. Granted in recent times not so much minting shares, but I’m sure the next announcement will address that. Ie make the players more attractive, less people willing to sell so FI can sell at higher a prices. In summary, you buy a share off FI, and you’re bet is they’ll win more divs than what you pay, or sell in process obviously.

    They mint shares and sell them to investors. So it's still using customer deposits to fund everything. Same with commissions, you take the commission from the customer deposit.

    How can you profit on your investment and Football Index also profit (to pay their costs) unless it's funded by new money?



  • @NewUser3235 how long have you been on the platform?



  • @Chilling-Rick said in Can someone explain why these tweets about Football Index's business model are wrong?:

    @NewUser3235 how long have you been on the platform?

    That's irrelevant to my question



  • @NewUser3235 just wondering if you were around when FI were minting a lot of shares?



  • it's a ponzi-like model for sure. Anyone who says it isn't doesn't really understand.

    FI have presumably built up a large cash balance from minting shares, but as of now, they are burning that cash every day because the dividends they're paying out far outweigh the sales commission they are earning, and as virtually no player is anywhere near their ATH, it's unlikely they will make much more from minting for the foreseeable future.

    It's a real issue, and it sure does seem to be unraveling before our eyes.



  • @NewUser3235 it’s a bet. They take the money from the ‘investor’, can do what they want, ie run the business. The ‘investor’ is paid dividends over x period of time. Different model now to the start of last year.



  • @o_O don’t listen to this guy, he’s upset coz he bought loads of Jesse Lingard shares that he can’t sell. He’s on here whinging every day, needs to get out for a good long walk.



  • @Chilling-Rick said in Can someone explain why these tweets about Football Index's business model are wrong?:

    @o_O don’t listen to this guy, he’s upset coz he bought loads of Jesse Lingard shares that he can’t sell. He’s on here whinging every day, needs to get out for a good long walk.

    I sold my 515 lingard shares at 27% profit, and I walk our dog for 3+ miles every day.

    Seems you don't know as much as you think you do... about FI also ;)



  • @NewUser3235

    Again it does also depend upon the function of LP001 in the equation.

    I do not believe that FI are only selling shares at minting point. It states in the game rules that offers will be placed at various intervals by FI or market makers -and this is not in reference to minting point. Shares can be sold by FI at any price point; it is referred to as an issuance curve in the game rules, but again we do not have many details as of yet.

    So this is how I assume it to be working, or how it will work. There are shares/bets in the market that have already been sold that are passing hands between traders but also via LP001 as market maker.

    This means FI via LP001 can place bids to purchase shares and also buy offers to remove dividend liability (for instance if a player is on for winning PB then they may choose to buy up all of the low offers themselves to reduce liability.)

    These shares they buy on bid or buy via taking up the low offers already existed, and can be sold back to market up the issuance curve or removed to control supply. The upside to burning them would be that reducing supply will likely create more upward momentum and push prices back towards minting point.

    This is how I assume it will operate. What it will require is significant investment to provide enough bid support to lower the feeling of risk like the old instant sell function used to, but it is not beyond the realms of possibility.

    If LP001 is profit generating then the hope is that this income will be returned into the market via loaded bids and create a similar feel to the old instant sell, albeit with bigger spreads for punters to operate in



  • @NewUser3235 Tbh, if you genuinely want some answers to your question, you're probably better off trying to get an invite to the discord group and asking it there.

    But I doubt thats what you're really looking for!!



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  • @NewUser3235
    i think i know who you are,
    do you know how many hours of listening and reading ceo's, psychologists, stock traders, investors all talking about fi. this has become a bit part of my life as has the ftse and aim

    its been the greatest thing iv ever done and i know the risks



  • @NewUser3235 There are many things to explain, but their business model can be simplified as: if their income from minting new shares + commissions > dividends + operation cost, then they are in profit.

    We are not investors, we are gamblers competing with each other. There is no way that all gamblers making money here.


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