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11/03/2010

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Daniel Regenbogen

You actually missed the best time to sell - that was around friday/saturday last week, when you were able to cashout at 251/252. The rate now being around 255 shows that your expected move back up to the 260 mark might already be happening. Time will tell. As much as I liked the fact that I got a nice little extra when I sold - a too-good sellers rate is also a too-bad buyers rate. And a good rate for me to sell might not help much if the customers have to pay more for their L$ and therefore decide to spend less.

Prokofy Neva

There's always someone to play one-upmanship in SL.

I don't play the LindEx or watch it like a hawk to find better days to cash out. It's not worth it. It's only a few dollars difference.

I don't buy this idea that better rates for merchants -- a more true reflection of labour's worth and value of products -- is somehow a bad thing for buyers. After all, *buyers were found* in order to make these better rates possible. If Supply Linden didn't interfere to make himself more money and dilute and lower our wages, it's not as if somehow people would stop buying Lindens. The rate would rise to its more natural valuation that it had under a free exchange years ago on the GOM, where it reached $4.25/1000 Lindens.

Prices merely calibrate to adjust; it's all relative. There's no "law" that says that Lindens have to be 275 instead of 250 Lindens per dollar, it really is arbitrary. People might value things more if they had to pay more for them and if there were less freebies.

What has to happen is that buying Lindens simply has to become easier. It's still way too hard. Having the interface merely take you to a website where you have to figure out various complex moves is unacceptable. I don't land in the airport in Paris and have to get my first francs to take a taxi by studying the currency exchange and figuring out where to place a limited order.

There should be packets of money readily available that you click on right from the web page when you start, not free money like the premium accounts give, but purchased money that shows the kinds of things you can buy with the various amounts, i.e. "want a cool outfit"? 250 "Want your own home on a 512 for a month? 1000. etc. etc. A link could also go to "better rates by placing limit orders".

There's still the problem that even people who paid $72 for an annual subscription immediately are barred from further purchases of currency for a time.

There have to be kiosks inworld where you touch them and it debits your credit card and gives you cash on the spot like an ATM.

Of course, the Lindens have huge fraud problems that they themselves created with their free account structure.

I'm also still not understanding the dates of all this. But perhaps it *does* illustrate my ultimate point: that when there is high demand, as there would be in the week before Halloween for people to buy all kinds of costumes and decorations, then the value of the Linden increases and the cashout is better. There is high demand NOT when the Linden is cheap, but when there is a reason to buy content. That should be the lesson of the world.

The earlier Lindens would obsess about this more and that's why they bought Slexchange.com and why they try to make content king. But they aren't thinking (or can't make the effort to do the complex work) of ensuring that there are events and reasons and motivations for people to want content.

Lindens should be like the people in my local CVS, who were whisking the stale Halloween candy off the shelves and putting up the Christmas items already, to the point where I even heard a man say, "Wait a minute, where's the Thanksgiving cards?" -- and who had Back-to-School out August 1 and Halloween by September 30.

Desmond Shang

The only major concern is that the LindeX market has a sort of 'fair market' implication, when in fact it is not anything of the kind.

Just this past week, several of us have noticed some rather fishy moves with large $L quantities on the buy side, about $L 10 million (roughly 40,000 USD) per move.

On the face of it that's not a big deal, but when the total demand side has a 'reserve' of anywhere from say, 40 million to as low as 5 million ~ anyone trading like that can conceivably take control of the exchange rate for several hours or days. That *may* have been exactly what happened this past week, and if successful, we are likely to see even more exchange rate manipulation.

And that's a problem for anyone else participating in the market. It's why financial markets are regulated in the real world, but here, it's just an opportunity for financial 'might makes right' to run rampant.

It reminds me of the old joke, "What's the best way to rob a bank?" with the answer being: "Own it." Whomever is big enough to own the LindeX and control its exchange rate will be able to fleece the rest of us at will. In a way, that's what Supply Linden did for years, taking a third of a million USD (not $L) off the table every month. But at least there was hope that such 'taxes' would work their way back into preserving the world. Now, I don't know who or what is rolling these rather large dice.

Deeply concerned about it. If I thought it would just trim a few pennies off of everyone now and then, hey, that's life in the big city. But I've never known a financial strategy to stop there. Generally Wall Street sells out Main Street every single chance it can get, if there's enough momentary financial gain at stake.

Prokofy Neva

The Lindens supposedly have Risk APIs and checks and balances and breaks on large transactions like that. Certainly I found that when the Woodburies fraudulently sent me $100,000 they had taken from some guy's account they hacked, after I alerted the Lindens, they *instantly* took care of it. Even with their short staff.

So I would have to wonder if the "strongarming" is happening...by the Lindens themselves. As a rescue mission. Perhaps it's all the compensation we'll ever see from them...

cube inada

hmm.
i thought the extra buck i made selling off my lindens was because the fed decided to sell 600 billion iou's.... for whos benefit indeed?!

funny how it all works in reality

melponeme_k

The whole game money micro-transaction business is totally unregulated. Who knows the hijinks that are going on behind the scenes.

But if its anything like what is going on in the real money markets...well...we are all gambling on one of the biggest pyramid schemes ever.

cube inada

mel, sadly i think we played that card game for the last 30 years already and have lost.well us. not a few of them..lol you know them -- lol-those who believe in min wage security guards manning their homes gates;)

id be happy to be wrong, but i dont see the Feds 600B dollar play rebirthing a middle class USA anytime soon.

Cassie

Wait, the Lindens responded to your request immediately, despite their short staff?

I think there's an acronym for that.

Prokofy Neva

Yes, it's called "saving their own asses," not kissing mine.

They also have decided -- for reasons that have nothing to do with me whatsoever -- that the Woodburies are going to be completely banned, blocked, scrubbed, deterred, Mac-banned, etc. etc. from the grid.

So whenever they try to come back or try to do anything on an old mule account or a new alt, the Lindens are all over it like white on rice.

You can provide your first and last SL name "Cassie," or kiss off yourself. That's my rule here.

Wildefire Walcott

The Risk APIs, as far as I know, are only for in-game L$ transactions. People with the highest "Currency Trader" status in Second Life are allowed to both buy and sell $40,000 USD worth of L$ every 24 hours.

Since the movement we saw earlier did appear to be happening in $40K chunks it does look like there are indeed a number of big-time currency traders actively trying their hands.

cube inada

World is now officially insane.;)
Its Glenn Beck Black Friday. and I think you have a new avatar C.

3rd time Ive ever watched this guys show.. I think hes your new avatar and his show a video version of Second Thoughts.

who'd a thunk it?

Well, the shows on now - Hes still got another 10 mins to go wacko on me--otherwise I think hes secretly dating Jon Stewart;)

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