Trading starts that Monday, and let me tell you — everyone is about to be so rich. So rich, folks. It’s gonna be tremendous. Your neighbors? Rich. Your mailman? Rich. Even the guy who didn’t believe in us? Rich. They’re all gonna be thanking the great state of Mayflower — and yours truly. Because we made this happen. We did it… We’re gonna get tired of winning. You’re gonna call me and say, ‘Governor, please, we can’t win anymore, we’ve won too much!’ And I’m gonna say, ‘Nope, sorry — we’re gonna keep winning!’”

— Orangebear22

However, hours before the LSE launched to the public on April 13th, 8PM, concerned members of the public and M-SPAN editorials found the foundation of the market to be shaky at best and doomed to fail at worst.

M-SPAN has compiled and investigated the multiple concerns and ethical lapses that exist in the current market. These include conflict of interests, legal structures with no foundation, ethical lapses, and others.

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Arbitrary Formulas

Over Economic Fundamentals

On the LSE’s Discord, they state that the prices of stock are determined based on this simple, rudimentary formula:

[Current Stock Market Price + (# of Shares Bought – # of Shares Sold) * ½]]

Now, I’m going to break away from M-SPAN’s value of non-biasedness. So, dear reader, answer this question…

If 1 share of a stock is sold, then how many shares of a stock is bought?

That’s correct, 1 stock has been bought! In order for a share of stock to be sold, someone has to buy that stock! Let us plug my example into their dear formula:

[Current Stock Market Price + (1 of Shares Bought – 1 of Shares Sold) * ½]]

Ok so, based on their formula, the current stock market price will always remain the same since the # of shares bought and # of shares sold will ALWAYS be equal to one another and cancel out. Even if the formula didn’t have this disastrous flaw, stock markets, in their fundamental principle, never work based on mathematical formulas. The best and most relatable version of a stock market that many Roblox users will understand is Roblox Limiteds.

The stock market operates on the fundamental idea of peer-to-peer transactions. In other words, people buy stock based on what people are selling for—not because of some fantasy formula that magically shifts the price up or down based on abstract inputs. The very essence of price discovery is rooted in what buyers are willing to pay and what sellers are willing to accept.

For Roblox Limiteds, the price isn’t calculated based on the number of people buying or selling—or even off of any formula at all—but instead on who is selling and at the price they’re listing. The lowest price offered is the market price. Applying any broad-scale formula to trading is always fundamentally flawed, as it fails to account for nuance.

Stocks Coming out of Nowhere; Corporations Aren’t Incorporated

Many of the “corporations” traded on the stock market aren’t actually incorporated in any legal or structural sense. Most lack the fundamental requirement of a real corporation: articles of incorporation. These companies are not required by the Department of State to file as formal entities and exist as sole-proprietorships in disguise

There is no true corporate foundation, leading to investors investing in what they believe to be structured institutions. There are no guaranteed shareholder rights, no board accountability, and no charter that defines what the company is or does.

Owning a stock within these black-cast corporations doesn’t grant any meaningful stake in the company either. Voting rights for the board are non-existent, dividends are optional at best, and stocks exist out of thin air. Beyond this, many of these corporations don’t publicly report their finances. There are no balance sheets, no income statements, nor quarterly earnings. Investors are left with no choice other than to buy in blind into these “corporations,” and have no way to see the type of dividends they are entitled to and ability for the government to audit the finances.

Law Firms Publicly Traded

Hamilton & Wexler, a Sole Proprietorship, has been listed as a Certified Lander Stock Exchange Corporation and therefore is a publicly traded entity–without any sort of public announcement or clear explanation of how a legal services firm meets LSE’s listing standards; a screenshot of the #invest channel located in the Lander Stock Exchange Discord shows Hamilton & Wexler as being a certified corporation under the ticker symbol HW.

Law firms going public is not unheard of globally, however, it remains highly controversial in the U.S and some places, outright illegal for a law firm to be public. Generally speaking, under the rules of the Mayflower Bar Association, attorneys are strictly prohibited from forming partnerships or business entities with non-lawyers if any part of said organization engages in the practice of law. Yet, in Clark County, the Hamilton & Wexler law firm has gone public and is now in gross violation of multiple standards set by the Mayflower Bar Association.

Additionally, the Department of State’s Commerce Property & Business Regulations requires that “Law Firms must be owned, and operated by bar-certified attorneys”, as well as noting that “Law Firms are also ineligible to be labeled a Corporation, or a Freelance Business,” yet, Hamilton & Wexler are, again, listed as a Certified Lander Stock Exchange Corporation in their discord.

The News, for Sale: CCN Trades on the Exchange Owned by Its Owner

In an investigation conducted by M-SPAN employees, it’s been found that 4yxt4, the Chairman & Chief Executive Officer of the Lander Stock Exchange, is the same owner of the Columbia Cable News, which is traded on the Lander Stock Exchange, where 4yxt4 works and manages.

The Lander Stock Exchange is responsible for regulating, listing, and overseeing the fair trading of companies–including CCN, this means that 4yxt is essentially approving, monitoring, and setting the rules for how his own media company is evaluated and traded by investors.

This revelation presents a textbook case of conflict of interest, which raises some deeply uncomfortable questions about transparency, potential market manipulation, and the general integrity of the financial sector.

If this isn’t stopped, this could very well become the new blueprint for media-financial corruption.

Unwanted Listings: Unauthorized Company Additions to Stock Exchanges

With the growing anticipation for the release of the Lander Stock Exchange, officials in the LSE have published a list of companies that would be participating in the stock exchange. Upon an investigation into the companies listed, it was found that some companies were not informed of the additions of their companies to the stock market. Some of these companies include LabsCo Security, Blockheed Bartin, Sentinel Security Group, and Cube Mart, a developer-owned business.

As of the time of writing this article, LabsCo Security and Blockheed Bartin have been delisted from the stock exchange¹. If this issue had persisted, it would have allowed people to buy stocks for companies unwilling to participate in the stock market. People buying stocks in these companies would have essentially been throwing their money into a fire pit, and the company owners would have been none the wiser.

Shortly after being asked for comment on this matter, Dannlabs, President of LabsCo Security, published this statement in LabsCo announcements²:

Public Notice Re the LSE
The Labs Corporation and LabsSec respectively are not publicly traded, nor do we have intent to do so within the next few weeks.
If and when an opportunity presents itself and the Corporation Board votes to release Class B stock at an appropriate market rate, we will announce it directly.

LabsCo has been in contact with the LSE. This, again, is not out of an intent to distribute on their exchange. We will, again, announce any such stock selling through official channels. The LSE does not represent our company’s plans for the future.

Dannlabs has also agreed to share his exchange with an employee with the Lander Stock Exchange, where it was revealed that the person who is considered their logistician has the education level of 1 economics class in high school and 20 hours of YouTube research on the subject of economics³.

In order for the stock market to succeed, it has to find corporations who are willing to participate in the system, not those who aren’t.

1. https://imgur.com/oFfRkSp ↩︎
2. https://i.imgur.com/9UdBIPg.png ↩︎
3. https://imgur.com/a/dannlabs-exchange-with-lse-employee-ZS8PEGc ↩︎