A "shoe deal" spotted in Manhattan. WTF?

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I was near the F-Train stop at 63rd and Lex, early to meet a friend recently, when I witnessed the following: Youngish Asian male, maybe 18 or 19, standing on the corner looking around, holding plastic bag with Nike box inside. Picks up cell phone, dials, keeps looking around. Stands there for maybe 5-6 minutes. Eventually, group of five or so high-schoolers approach. It's clear that the two parties haven't met in person previously. Asian guy hands one of the kids the bag, and the kid pulls out a matte pink Nike box with a black "Swoosh". Other kids are all very excited as kid holding the box opens it. All highschoolers look at, adore shoe. Kid with box returns shoe to box and box to bag, pulls wad of cash from his pocket, gives cash to Asian guy. Everyone smiles. Asian guy walks uptown, highschoolers descend into subway.

Please explain to someone not sure what just happened unless the shoe was made of drugs.