Thread by @FootballArgos, Some #FootballIndex traders were overexposed, but I feel the narrative of "problem [...]

Some #FootballIndex traders were overexposed, but I feel the narrative of "problem gamblers" will be repeated despite FI have such external stamps of approval. Not only from gambling bodies but also its partnership with NASDAQ + appearing in The Sunday Times 2020 Tech Track 100. https://twitter.com/WelshIndex/status/1370315964940742658

https://twitter.com/WelshIndex/status/1370315964940742658

We saw statements from then-CEO of #FootballIndex, Adam Cole, in June 2020, stating his desire for FI to become "a legitimate alternative asset class" (this update also mentions NASDAQ partnership and their Tier 1 operator with the Gambling Commission)
https://trade.footballindex.co.uk/nasdaq-20200626/

In the 1st October 2020 #FootballIndex public update, the company repeated this desire to move away from gambling and into a more financial regulated product, doubling down in a further update the following day in the paragraph below the highlighted one.

This 01/10/20 update is also the one where #FootballIndex stated that "we have now been operating for 5 years and we’ve never been in a stronger financial position than today". (Misreported in some places as being 15/11/20.)

https://trade.footballindex.co.uk/market-update-01102020/

Just a few months after the statement of being in the strongest financial position in their history, #FootballIndex then declared on 5 March 2021, that they were facing serious financial difficulty and dividends had to be reduced
https://trade.footballindex.co.uk/marketupdate-050321/

The financial difficulties (vs financial strength, as of 01/10/20) were re-iterated in a #FootballIndex statement on 6 March 2021: "Over recent months, Football Index has sustained substantial losses". https://trade.footballindex.co.uk/fihq-statement-060321/…

Interestingly, #FootballIndex had removed another dividend (In-Play, aka IPD) in early 2021 also, and their announcement on 8 January 2021 did not state (or even hint at) financial difficulties https://trade.footballindex.co.uk/update-080121/

I may return with further examples, but the ones in this thread, show how #FootballIndex customers placed their bets in good faith and were repeatedly misled, and arguably mis-sold. The narrative should remain on the negligence of the people involved with the company.

Already found another hugely misleading #FootballIndex statement from the 26/08/20 update: "We've successfully weathered the COVID-19 economic storm" (backtracked on in the 05/03/21 update)

https://trade.footballindex.co.uk/dividendreview20/
https://trade.footballindex.co.uk/marketupdate-050321/

Mike Bohan wrote a piece (23 Feb 2021) on LinkedIn regarding the upcoming review into UK gambling. #FootballIndex has unravelled rapidly and the mentions of the platform as "safe" and "sustainable" may not have been true at the time of publication

http://web.archive.org/web/20210307114058/https://www.linkedin.com/pulse/upcoming-review-gambling-laws-must-allow-nuance-mike-bohan/

This 13/07/20 update is perhaps the best summation of the misleading nature of #FootballIndex communications, and promises not fulfilled. People deposited more money into the product due to the roadmap. For example, NASDAQ integration has not materialised https://trade.footballindex.co.uk/marketupdate-20200713/

I am not 100% sure where this screenshot has come from but another possible example of the reassurance that #FootballIndex were in a strong financial position. This was in February 2021, and only weeks before the company entered administration.

In June 2020, then-CEO of #FootballIndex Adam Cole confirmed that the company had a "6 figure level of active paying customers". In October 2020, FI launched the active trader metric, regularly showing less than 5k active customers https://twitter.com/AdamColeFI/status/1267894284923162624

https://twitter.com/AdamColeFI/status/1267894284923162624

In the 2nd half of 2019, #FootballIndex were in bidding war for Atlantic Sport Exchange, losing out to Sportex (not sure what happened to them?), who paid £19 million. Did FI then funnel customer funds into Project Hadron to develop similar fintech? https://www.prnewswire.co.uk/news-releases/sportex-outbids-football-index-in-a-ps19-million-takeover-of-atlantic-sport-exchange-841679770.html

Sportex Outbids Football Index in a £19 Million Takeover of Atlantic Sport Exchange

/PRNewswire/ -- The result follows an elongated bidding battle between two of the largest Sports Trading companies in the UK over the coveted overseas...

https://www.prnewswire.co.uk/news-releases/sportex-outbids-football-index-in-a-ps19-million-takeover-of-atlantic-sport-exchange-841679770.html

As #FootballIndex traders, we were often given the picture that 'business was booming' until very recently. Note the rocket emoji and emphasis within this FI market insight tweet on October 9th 2020, as they mentioned paying a record amount of dividends.
https://twitter.com/footballindex/status/1314625096800235522

https://twitter.com/footballindex/status/1314625096800235522

This may be old information but based on the #FootballIndex Partner Programme (affiliate scheme), there is a mention of a 67.5% liability reserve. If the FI money well does dry up, I think this aspect should be a particular focus of investigation.

https://trade.footballindex.co.uk/partnerrevshare/

Latest Threads Unrolled: