[HN Gopher] What the Hell Is This Company the 76ers Just Partner...
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       What the Hell Is This Company the 76ers Just Partnered With?
        
       Author : bryanrasmussen
       Score  : 297 points
       Date   : 2021-12-25 10:41 UTC (12 hours ago)
        
 (HTM) web link (defector.com)
 (TXT) w3m dump (defector.com)
        
       | trenning wrote:
       | There was a small discussion about it on reddit but nothing new
       | really, just shady company does shady things, all part of the
       | process.
       | 
       | https://old.reddit.com/r/nba/comments/rn62qy/defector_what_t...
        
         | swasheck wrote:
         | i don't know if this was intentional but the "process" comment
         | is hilarious given all of its applications within the 76ers
         | organization
        
           | jkestner wrote:
           | This is an until-now undiscovered step in Hinkie's plan. You
           | thought you had to Trust the Process before.
        
       | jimsparkman wrote:
       | Fantastic article. Searching the stock ticker (CSCW) on Reddit
       | turned up some humorous old posts about how this penny stock is
       | about to take off.
        
         | api wrote:
         | There are people who make a nice living just pumping fake
         | companies over and over in the penny stock market or to D-list
         | VCs. These are the white collar equivalent of what cops call
         | "greasy crimes," crimes not quite serious enough to get real
         | attention. (The dumb street crime epidemic in California is a
         | result of further dialing back enforcement of "greasy crimes.")
         | 
         | I'm sure those types are all over this NFT craze.
         | 
         | "I see that there are dumb people with money. I have a solution
         | to that..."
         | 
         | I feel like a total sucker sometimes for attempting to do
         | useful work when if I'd put the same effort into cheating
         | people I'd be rich now several times over. This is truly a new
         | golden age of the con artist. I mean we just had one for
         | president.
         | 
         | I bet con artistry flourishes during any time of rapid change,
         | confusion, and upheaval. Nobody knows what is happening so it's
         | easy to sell empty boxes with charisma.
        
           | bratwurst3000 wrote:
           | Thats true it is an amazing time for con artist and i had
           | never think about it as a consequenz of rapid change
        
           | pessimizer wrote:
           | I think its more that con artistry flourishes when interest
           | rates are in the toilet.
        
       | AtlasBarfed wrote:
       | Shades of Michael Paloma and his New York Blues, featuring
       | Richard Grieco!
       | 
       | There are some strange "partnerships" that happen with local
       | sports teams, who will literally take any money for any reason
       | from anyone.
        
       | mym1990 wrote:
       | This sounds somewhat like the Rich Energy sponsorships in Formula
       | 1(Haas team I believe) a few seasons ago. Maybe this is all an
       | inside joke, but hopefully the incompetence of someone within the
       | 76ers org is recognized and addressed.
        
         | rozap wrote:
         | And that ended so well for everyone involved. Grab the popcorn.
        
           | mijoharas wrote:
           | Could you expand on what happened?
        
             | ilamont wrote:
             | https://jalopnik.com/what-you-find-when-you-look-into-
             | rich-e...
        
             | rozap wrote:
             | Quick overview here: https://youtu.be/EuoYkNyYaBY
             | 
             | But the rich energy thing is just one of the more recent
             | ones. Formula 1 has had an endless stream of seedy sponsors
             | over the years, including an alleged Nigerian prince.
             | Overview here: https://youtu.be/H7M74iEonn0
             | 
             | And judging by the number of cryptocurrency companies
             | plastered all over f1 cars right now, I'm sure there will
             | be more entertainment in the future.
        
               | soneca wrote:
               | I tried, but that first YouTube it's waaaay too fast
               | English for me to understand a thing (non-native English
               | speaker here). I'll Google it
        
               | mperham wrote:
               | It's very fast, even as a native speaker. Try setting
               | Playback Speed -> 0.75 in the options.
        
               | mijoharas wrote:
               | Wow, I'm surprised I've not heard of any of this!
               | 
               | Thanks for the links
        
           | Avicebron wrote:
           | slight tangent but this I listened to someone describe a
           | meeting with capetian (before the 76's he was trying to get
           | involved with FaZe clan for similar nft (casinos i think)
           | projects. I can't find the video, but he came across as very
           | sketch.
        
             | [deleted]
        
       | JumpCrisscross wrote:
       | Best case: the 76ers franchise team is incompetent. Worst: they
       | have an embezzlement and/or money laundering scheme embedded in
       | it.
       | 
       | Might pick up _e.g._ $100 of shares and start filing shareholder
       | inquiries on Monday, for shits and giggles. Would suggest the
       | authors of this article submit it to the SEC [1].
       | 
       | [1] https://www.sec.gov/tcr
        
         | waffle_maniac wrote:
         | Don't you mean short it?
        
           | andruby wrote:
           | He wants to become a shareholder so he can ask questions to
           | the board.
           | 
           | Shareholders have additional rights.
        
           | dylan604 wrote:
           | Are you a shareholder when you short it? Can a non-
           | shareholder make shareholder inquiries?
        
             | vorpalhex wrote:
             | Not on a naked short.
        
               | oarabbus_ wrote:
               | A person shorting an equity (borrower) is not a
               | shareholder, only the share lender is
        
             | JumpCrisscross wrote:
             | > _Are you a shareholder when you short it?_
             | 
             | No, and it doesn't matter if it's naked or not. You borrow
             | a share and then sell it. The person you sold it to has
             | shareholder rights. The person you borrowed it from retains
             | them, albeit in limited form. You have no shareholder
             | rights as you are not a shareholder.
        
               | dylan604 wrote:
               | I'm shocked those questions were not read as rhetorical
               | in response to ridiculous post.
        
               | floatingatoll wrote:
               | You're well-familiar with HN's tendency to take the dry-
               | literal interpretation path, I see :) It's difficult to
               | build productive conversation out of sarcasm and
               | rhetoric, and the guidelines ask us to choose the most
               | good-faith interpretation rather than the most obvious
               | one.
        
               | dylan604 wrote:
               | Answering a question with a question is a time honored
               | tradition. Just because it's rhetorical doesn't mean it
               | was negative. If the person I responded to answered those
               | questions for themselves, then it might lead them to
               | realize how their question totally missed the point of
               | the post they responded to. Teach a person to fish blah
               | blah.
        
               | iab wrote:
               | How would you differentiate between what you wrote, and
               | someone genuinely asking the same question?
        
       | hnburnsy wrote:
       | The Phoenix Sun's partnered with an obscure environmental start
       | up named Footprint, even renamed the arena, the Footprint Center.
       | I wonder if it is a money laundering scheme or maybe the Sun's
       | traded naming rights and promotion for equity.
        
         | kevinmchugh wrote:
         | For many years, one of the biggest sponsors in MMA was a small,
         | niche, industrial product. It was cheap and made the owner of
         | the brand happy, so bought the ads. Arena naming rights
         | probably aren't cheap, but at a small company there might not
         | be many people who have to weigh in on the decision.
         | 
         | https://mmajunkie.usatoday.com/2014/01/so-what-is-a-dynamic-...
        
         | hugey010 wrote:
         | My first guess would be for some large environmental tax write-
         | off.
        
       | moonbug wrote:
        
       | rsanek wrote:
       | That intro video has ripped a section of Google's project
       | starline clip -- https://youtu.be/Q13CishCKXY
        
       | darcys22 wrote:
       | Everyone in this thread is crying scam because HN hates crypto.
       | However the NBA teams and players love NFTs.
       | 
       | https://hypebeast.com/2021/12/steph-curry-breaks-all-time-nb...
       | 
       | https://www.nba.com/heat/nft
       | 
       | https://nbatopshot.com/
       | 
       | The less interesting reason is that the 76ers are doing NFTs and
       | they have engaged a team to assist with this.
        
       | tester756 wrote:
       | the sad part of this article is that
       | 
       | if you aren't on the internet, then you don't exist, lol.
        
       | devonallie wrote:
       | This story sets off my scam alarms. It also reminds me of the
       | time that Samsung partnered with a group pretending to be
       | Supreme.
        
         | Aperocky wrote:
         | > metaverse and NFT
         | 
         | The alarm couldn't have been louder.
        
           | millzlane wrote:
           | For me it was the amazon listings on their app in the video.
           | You can see the "Dickie Roberts child star" movie poster.
           | That's been popular on Amazon prime for the last couple
           | months.
        
         | SirSourdough wrote:
         | It should probably set off anyone's scam alarms. Even if it's
         | something legitimate it's still incredibly shady in its current
         | incarnation.
         | 
         | At least the Supreme thing uses an established brand to carry
         | some legitimacy. It's pretty hard to see what these people
         | could have showed the 76ers to convince them this was a
         | worthwhile partner.
        
       | thebigjewbowski wrote:
       | As a clueless shareholder in CSCW I was pretty shocked and amused
       | by this.
       | 
       | Awhile back (2/24) I bought $200 each of several
       | bio/Pharma/blockchain penny stocks based on little to no research
       | 
       | So I had 200 shares of ColorStar at $1.02, sold 180 of them
       | between $1.35 and $2.17, and now have 20 left at the current
       | price of $0.535.
        
       | doctorhandshake wrote:
       | If you've ever been curious what William Gibson's later novels
       | are like, this gets you pretty close.
        
       | kolanos wrote:
       | This is reminiscent of a sub shop making $35K/yr that was
       | publicly traded and valued at around $100MM. Turned out to be a
       | Chinese shell company. [0]
       | 
       | [0]: https://www.cnbc.com/2021/04/15/theres-a-single-new-
       | jersey-d...
        
         | bilalq wrote:
         | This is even crazier though. That was an OTC stock. This is
         | traded on the NASDAQ and has SEC filing obligations.
        
       | btrautsc wrote:
       | What is most incredible is somehow Daryl Morey is involved with
       | this.
        
       | tyingq wrote:
       | Interesting that it is almost certainly some kind of scam, yet
       | they chose not to stay low key. Rather, they went with press
       | releases, contract signing events, etc.
       | 
       | Maybe just a purposefully faked PR buzz "let's go viral" thing?
       | 
       | Edit: Ahh, so "pump and dump" seems to be the prevailing guess.
        
         | jameshart wrote:
         | Pump and dump? Trying to become a memestock?
        
         | awb wrote:
         | What's crazy is that for $10-15k you can have a really
         | professional looking website, instead it looks like they
         | dropped about $2-5k for a half-built, broken looking one.
        
           | ren_engineer wrote:
           | you can buy a Wordpress template and have some intern spend a
           | few hours changing the text and have a professional looking
           | website
        
         | rexreed wrote:
         | They needed something high profile to boost their stock and
         | rope in more investors.
        
         | JumpCrisscross wrote:
         | > _it almost certainly some kind of scam_
         | 
         | They tried to privately place $10mm in November [1], though
         | that was terminated a week later [2]. They announced a new
         | auditor a few days later [3][4] who doesn't appear to have been
         | auditing any U.S. public companies prior to this July [5].
         | 
         | They're also selling $20mm of shares as of September [6] via an
         | Atlanta-based broker-dealer who appears to do these for Chinese
         | penny stocks for 7 to 8% fees [7]. (Searching the firm on
         | LinkedIn brings up D.C.-based general counsel [8], a guy in
         | Miami Beach and a dude in Ghana.) All this suggests a pump and
         | dump with possible laundering connections.
         | 
         | [1]
         | https://www.sec.gov/Archives/edgar/data/0001747661/000121390...
         | 
         | [2]
         | https://www.sec.gov/Archives/edgar/data/0001747661/000121390...
         | 
         | [3]
         | https://pcaobus.org/resources/auditorsearch/issuers/?issueri...
         | 
         | [4] https://www.allianceaudit.com/
         | 
         | [5]
         | https://pcaobus.org/resources/auditorsearch/firms/?sort=olde...
         | 
         | [6]
         | https://www.sec.gov/Archives/edgar/data/0001747661/000121390...
         | 
         | [7]
         | https://www.sec.gov/Archives/edgar/data/793628/0001553350210...
         | 
         | [8] https://www.linkedin.com/in/alecorudjev
        
       | Animats wrote:
       | From the article: _" metaverse and NFT products?"_
       | 
       | They actually filed a prospectus with the SEC in September
       | 2021.[1]
       | 
       | Nothing there mentions a basketball team, or "metaverse". This
       | company started as a cement maker in China, pivoted through floor
       | tiles, then after-school education, and now online education and
       | concerts.
       | 
       | There's a recent financial statement.[2] Finally, there's a
       | business model:
       | 
       |  _" The curriculum development created by us includes music,
       | sports, animation, painting and calligraphy, film and television,
       | life skills, etc., covering plenty of aspects of entertainment,
       | sports and culture. At present, we have signed contracts with
       | well-known international artists and more than 50 celebrity
       | teachers have been launched._
       | 
       |  _The Color World platform generates revenue primarily through
       | paid membership subscriptions priced at $9.90 per user per month.
       | Members can access most video courses on the platform for free
       | and will be charged the tuition fee of $30 /hour for taking
       | classes of tier 1 artists and $15/hour for learning from Tier 2
       | artists. First three months of launch costs only $1.5/hour to
       | attract downloads and there have been over 500,000 registered
       | users as of the date of this report._
       | 
       | So it's a monetization platform for minor celebrities.
       | 
       | The financial statement has a balance sheet. They're losing
       | money, and they're not very big.
       | 
       | [1]
       | https://www.sec.gov/Archives/edgar/data/0001747661/000121390...
       | 
       | [2]
       | https://www.sec.gov/ix?doc=/Archives/edgar/data/0001747661/0...
        
         | rahimiali wrote:
         | The pattern appears to follow stock market hypes. First China
         | markets: construction, then child education. And now
         | nft/metaverse, a US hype. Given there is no actual underlying
         | product or business, it looks like a vehicle for pump and
         | dumps.
        
         | chrischen wrote:
         | Honestly sounds like a struggling small business going through
         | pivots and ended up paying for some partnership with a big
         | brand.
        
       | ur-whale wrote:
       | https://archive.ph/wVtJO
        
       | IG_Semmelweiss wrote:
       | Fantastic article.
       | 
       | Would like to commend the article's author, for going deep in the
       | rabbit hole while also keeping it light and entertaining for the
       | reader.
       | 
       | Kudos
        
         | awb wrote:
         | Amazing article and great persistence and research. Can't wait
         | to hear how it ends.
         | 
         | My only gripe is the writing style, which I've started seeing
         | on major news sources that reads more like stream of
         | consciousness or friend to friend rather than reporter to
         | reader:
         | 
         | > Whew. It's been quite a journey, but here we are at last at
         | the real jumping-off point of this flooring company's long
         | transformation into a, ah, metaverse.
         | 
         | Take out the "Whews" and the "ahs", etc., and it's a really
         | well written piece IMO.
        
           | pkilgore wrote:
           | To be fair, this is not the New York Times. It is a blog
           | where the above-the-fold post today is "What did we get stuck
           | in our rectums this year?"
        
             | [deleted]
        
           | ChrisMarshallNY wrote:
           | That's how _The Register_ [0] rolls. I really enjoy their
           | style. They are also _very_ sharp geeks.
           | 
           | [0] https://theregister.co.uk
        
         | bilalq wrote:
         | Yeah, I was really blown away by it. This is an amazing example
         | of quality journalism. Not only was the investigative work
         | impressively thorough, but the quality of the writing and tone
         | came together to make this one of the most compelling things
         | I've read in a long time.
         | 
         | The story itself is absolutely wild.
        
       | adnmcq999 wrote:
       | I think it's satire and not a scam
        
         | detaro wrote:
         | Who exactly is doing the satirizing here?
        
       | wwilim wrote:
       | Looks like a perfect dream team of Chinese scammers and American
       | business bullshitters
        
       | CyberShadow wrote:
       | "The 76ers" is the name of a professional basketball team in the
       | United States. (Not related to System76.)
        
         | jakear wrote:
         | Though the origin of both names is indeed the same:
         | https://blog.system76.com/post/622541723365769216/the-meanin...
         | 
         | Thus proving 76 is not the smallest uninteresting natural
         | number.
        
         | Riverheart wrote:
         | Thank you good sir
        
       | jccalhoun wrote:
       | Someone at color star has an uncle or dad who works in the 76ers
       | office.
        
         | rexreed wrote:
         | Nice. More random unprovable FUD. Fake it till you make it eh?
         | Laughing all the way to the bank.
        
       | bovermyer wrote:
       | Well this is certainly a bizarre story. As I'd never heard of
       | Defector, I checked around to see if a more familiar news source
       | had anything about this. AP News has a story about the deal,
       | though it mentions nothing about the questionable existence of
       | Color Star.
       | 
       | This is an interesting mystery that I don't really have the
       | resources to investigate.
        
         | skinnymuch wrote:
         | You can usually at least try to see any wiki information and
         | about us info for a site or resource. Those are both available
         | for Defector which show it is credible, former employees of
         | Deadspin:
         | 
         | https://defector.com/about-us/
         | https://en.wikipedia.org/wiki/Defector_Media
         | 
         | You could say it might be even more credible than other places
         | since it is employee owned. A small trend of modern media sites
         | like https://Clickhole.com which was bought from being The
         | Onion subsidiary, both owned by the same new bad parent company
         | as Deadspin. Except for Clickhole I believe Cards Against
         | Humanity bought the site and then let it be employee owned.
         | Even cooler!
        
         | djmips wrote:
         | Maybe it's a sentient AI's first foray into public life.
        
           | jameshart wrote:
           | Yes, very strong vibes of Daniel Suarez's _Daemon_ to this
           | story.
        
           | ludamad wrote:
           | It'd be funny if an AI went off the rails, keeping its prime
           | directive to 'make a lot of money'
        
             | ozfive wrote:
             | This would be the first terrifying step an AI would take to
             | begin world domination.
        
         | CPLX wrote:
         | Defector is one of the most respected and credible news sources
         | in the sports world.
        
           | Kye wrote:
           | Deadspin could have been that, but management decided chasing
           | profits mattered more than reputation, so the reputation left
           | and founded Defector. I don't even like sports, but I listen
           | to their podcast.
        
         | jccalhoun wrote:
         | Deflector was created by the writers of Deadspin, a sports site
         | owned by gawker, when the new boss of Deadspin told them to
         | stick to writing about sports and not broader issues.
        
       | silexia wrote:
       | Could be a scam or money laundering scheme for the Chinese
       | government or it's henchmen.
        
       | jalino23 wrote:
       | I was playing around with oculus quest 2 horizon venues and I did
       | notice a lot of 76ers scheduled live events. the first one will
       | be tomorrow.
        
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       (page generated 2021-12-25 23:00 UTC)