when something seems too good to be true
it probably is
pretty sure I've started another video
with the exact same line I'm saying it
again for emphasis some of you need this
to be emphasized underlined in bold
italics whatever it takes so when I
scroll through my Facebook feed like so
and find something like this show up as
promotional content I can't help but
investigate oh and a spoiler hype drop
that's the name I think yeah it sucks
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below pipe drop is well it's a loot box
website if ro small chunks of cached at
them in exchange for mystery tech and
that's the catch you have absolutely no
idea what you're getting so the
sponsored spot I saw pop-up on my
Facebook Timeline pertain to pcs I'm not
surprised that's retargeting in a
nutshell I search for PC stuff all the
time but when I clicked on the ad it
took me to a splash page for dozens of
PC tech mystery boxes you've got
everything from gaming on a budget to PC
master-race and GPU upgrade most are
pretty vague and that's obviously how
they want to keep it that's the first
red flag the second red flag has to do
with the fact that some of these branded
boxes are extremely cheap check out this
razor budget box
we just recently worked with them for a
theme to build and set up and I can tell
you firsthand most of their stuff isn't
cheap so when you see a $4 and
ninety-nine cent price tag under the box
yeah second red flag the third red flag
in my book has to do with the overall
product showcase for each box even the
gaming on a budget box for $4.99 shows a
core i5 like a BenQ monitor what looks
like an MSI graphics card it's all hype
I said
his name hype drop that's making more
sense now anyone who honestly believes
that these kinds of products can be
frequently found in a five-dollar loot
box probably deserves to be scanned by
the way the age limit here is eighteen
or older so I'm not wishing for kids who
don't know any better to be scammed
you're an adult at 18 here in the states
and you're in control of your money
misleading or not I mean you've got
these red flags staring you in the face
but perhaps the largest red flag of them
all is the fact that when you buy these
loop boxes you have to do it in
questionable ways so let's buy one just
to show you how things work if I click
the button purchase box I'm prompted to
a login window I can sign in via
Facebook Google email Direct it's just
another way for companies to gather data
but it isn't an abnormal practice the
Facebook Commission's weren't alarming
so I chose to log in this way all right
so I'm logged in now I can purchase a
box click the button and you don't have
wait no you don't enough balance to
perform that action what ok typos aside
I was kind of shocked by this I have to
add balance to an account that I just
created in order to spend actual money
on the platform whatever let's add
balance click top-up now at this point
I've only got 3 ways to add money GTA
gam Evo I don't even know what this one
is but I'm sure it's sketchy and kinguin
3 sites
I'd never recommend anyone used
frequently to be completely honest these
are just passed through entities acting
as the intermediary between real sellers
and buyers think of them like eBay
because they are a lot like eBay but
with less protection and less
consistency if in my personal opinion
anyway if a bay is like a condom than
g2a is the pullout it can help if you
make purchases with something like
PayPal but still I choose eBay any tape
over these thanks to their strong fire
protection guarantee you might disagree
with me there but I mean it's it's
something I'm willing to distinguish in
this video it's kind of weird that they
would follow you through one of these
three sites complaining aside though I
bit the bullet and I loaded up I used a
car and I created with privacy calm not
a sponsor in this video they have been
one in the past but it's just good
practice to make temporary cards when
dealing with sites like these
and privacy decline the purchase because
g2a is considered a quote high risk
merchant yeah see what I mean this
wouldn't happen on eBay I guess I'll
have to use PayPal then I would prefer
anonymity but PayPal is still secure all
of this just kind of adds to the
sketchiness factor of hype truck anyway
skipping ahead the funds were finally
added to the hype drop account and I
could start buying loot boxes now the
first box I bought was the one called
build PC it was considerably more
expensive than some of the other
offerings but still not the post you
could spend in this category and I'm
sorry I'm not gonna spend a hundred
bucks on this site it's just not gonna
happen
so $21.99 it is the transaction was
processed and I could immediately open
the box
a sliding banner makes it seem more like
roulette than anything else you feel
like you actually have a chance to win
some good stuff though you and I both
know that isn't actually true for a
second I thought I'd won an RT X 2080
that I'd be pretty ironic when seen in
the context of the demeanor of this
video but no instead I want a Corsair
fan not sure how I'm gonna build a PC
with just a single fan so I decided to
sell the fan back to the website at
coincidentally a cheaper price than what
I paid for it and bought a box that cost
considerably less this razor box 5 bucks
what do we get it's it's a sticker all
right now I can see why this box is so
cheap but for good measure sake and
consistency in just curiosity in general
let's sell this back and buy another
razor loot box another freaking sticker
am I surprised
No third time's the charm there right so
yeah let's go ahead and sell this back
into it again and another sticker so I'm
done with this one let's try something
else how about the tech on a budget box
all these are just so enticing here we
go
and batteries okay done with that one
let's try the gaming on a budget box for
$4.99 GTA liberty city yeah I know again
another freaking game code this time for
fallout 3 which can be purchased on a
Keys retailer site like SCD key for the
same price so nothing special here
again I don't even know what this is
again same thing no idea what this is so
now we're down to just three USD or so
and that's because this site
conveniently takes a cut off the top of
every trade in or money back exchange
that you make so if you get something
you don't like you click the refund
button and it gives you like 80 percent
or so depending on the value of the item
obviously of what you paid for the box
and most of the time it's gonna be a
crappy product right so they're going to
still make money and you're going to
lose money in the long run and you'll
probably feel inclined to put more money
in your account but don't do that so
let's go for the cheapest box the budget
master not that we have much of a choice
at this point
stereo headphones again some kind of
slim wallet again another wallet and I
am out of funds well that was fun
felt a bit like walking into a casino
with a stack of cash and leaving with
just enough change for a cab look I'm
not calling the site itself a scam I'm
not denying that these higher priced
products are in fact being given away
rather what I think is truly a scam here
is the representation of these loot
boxes that and the fact that it seems
like hype drop has been paying creators
on YouTube to represent their site in a
good light with good odds and outcomes
when we know this is not the case and to
understand why I'm actually going to
break down their business model for you
so a company like hype drop has quotas
let's say they sell only one kind of
loot box at an even ten dollars let's
say their desired margins are 50% and
let's say their volume is a hundred
units a week with these metrics and a
few elementary calculations we can
determine the ratio of products one that
exceeds the $10.00 buy-in that is the
number of times hype drop actually loses
money there's no risk here at all by the
way for the company it's just the optics
that make it seem as such so 100 units
per week ten dollars each comes out to
$1,000 in sales per week four thousand
per month 48k per year if desired
margins on that thousand dollars are 50%
then the company should expect to net
500 dollars per week after inventory
expenses all of those stickers I won for
instance in the razor box were literally
worth pennies so let's say that each
cost
since the company could sell 95 stickers
at this price in each loop box per week
costing them only $9.50 in total and
would still be able to spend an
additional four hundred and ninety
dollars and fifty cents on the remaining
five items to sell that week you can buy
a nice CPU cooler with that money in
decent graphics card a motherboard a CPU
and a kit of RAM all in that budget and
still net $500 at the end of the week
thanks to the offset of sticker sold
during the same period at insane margins
so hype drop can and probably is
awarding a few buyers here and there
with awesome hardware I'm not saying
that they're scamming you in that sense
it it all fits right into the scheme we
just laid out and it always ends with
them making a hefty profit it's a
business it's how they designed it but
by misrepresenting a loot box by
showcasing the four or five priciest
things on the cover that's where things
get a little scammy for me it's
intentional deceit in my opinion but
probably totally legal and I mean look
it's not like hype drop is hiding this
you can see what was recently won in
each box of course the most expensive
items linger a bit longer so it seems
like the odds are more in your favor but
at least you can see to some extent the
transfer of goods all by design and
according to their plan if it seems too
good to be true again it probably is
emphasis stay away from hype drop folks
that's my professional opinion thanks
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