L$ Exchange Panic – Spacebux Value Slides!!!
by Pixeleen Mistral on 17/06/10 at 11:28 am
On the Lindex currency exchange, the value of the L$ fell sharply yesterday as the average L$ per $1.00 USD rose to 279.76 – well above the recent average of around L$ 262. With price levels not seen in over 4 years, the market panic led to a statement from M Linden – "recent weeks have seen some reduction in economic activity compared to the record activity of the first quarter, as well as some uncertainty in the wake of recent corporate anouncements".
fire sale on L$s – but not enough buyers
A master of understatement, M Linden also pointed out, "uncertainty related to the corporate restructuring announced last week by Linden Lab, contributed to an imbalance between supply and demand on the LindeX today".
With volatility not seen in over 4 years and weak demand for L$ spacebux, it is unclear what today’s trading will bring. Land owners who must pay tier fees to Linden Lab with real dollars have little choice but to sell L$s, but as the market digests the implications of last week’s sudden 30% cut in Lab staffing levels, it may be difficult to find enough buyers to maintain the L$ spacebux value against real world currencies. A round of L$ price inflation seems likely if the slide in value continues. Mudflation anyone?
Fez
Jun 21st, 2010
@pappy
I want to invest in your bank, but I need to be sure that yours is FIC insured.
Also, do you have any Linden Gold reserves? I’d like to see the stockpile in 3D before making the investment. It’s the only way to be sure, I’m sure.
Sorry for all the inquiries; I just want to make certain that my L’s will be safe and sound – not that your credentials aren’t enough, of course, but I just saw the 60 Minutes piece on Madoff tonight, and I’m “a-scary” as you might say in your parlance about giving my money out at this time.
BTW, I’ll have more money to invest, just as soon as this nice Nigerian fellow finishes paying off his loan obligation by the end of the month.
Pappy Enoch
Jun 21st, 2010
@Fez,
FIC? Sho’ nuff am insured with Falstaff, Iron City, and Corona (for them gals who like their insurance wif a slice o’ lime).
Gold reserves? You bet I got me some gold. I guaran-damn-tee you every one o’ King Mark’s gold fillings am a-comin’ out o’ his head in case my bank goes tits up.
Don’t worry about ol’ Bernie Maddog. He ain’t mixed up in this. If’n he comes round Enoch Holler, the good ol’ boys got orders to shoot his butt on sight.
I do look forward to yo’ investment. A fake shotgun am waitin’ for you. Happy Ending too, for ONLY 10,000L.
Best act qwik. I got me a second investur and the kitty am meowin’ (so to speak) wif 14L in the bank.
IntLibber Brautigan
Jun 21st, 2010
Sorry Pappy, but its even worse today.
Sellers are outnumbering buyers by a whopping 14 to 1 ratio. There are a mere 15 million L$ in limit buy orders outstanding right now, while the limit sell orders remains steady at 218 million L$.
Yesterdays trading volume was a mere 70 million L$, significantly below normal and likely is the only reason we didn’t see the trading turn into panic selling.
This being Monday, there likewise may be thin trading, but this depends on the goings on at SL7B. If something were to disrupt todays events or the grid in general we would see a great reduction in the amount of L$ buyers, then trading volume would likely remain quite light and despite the imbalance between sellers and buyers, we could avoid a selloff today, however any grid disruption today would also likely exacerbate the general public loss of confidence in Linden Lab management and could lead to a significant selloff some time this week.
hobo kelly
Jun 21st, 2010
Wellsum, Ize bees bein over at that SL7B fer 2 hours now, and funny youall mention it, butah the whole thing just came to a grinding halt and the whole thing just collapsed and everyone got logged off that thar birthday party. It were like walkin in Elly Mae’s jello fer 2 hours, then jus poof it logged everyone off. I reckon Im gonna try to go back. youall come on over and help out…
Pappy Enoch
Jun 21st, 2010
@Hobo Kelly,
“It were like walkin in Elly Mae’s jello fer 2 hours”
Dagbabbit, boy, you done put a snap in my panty-loons wif words like them.
Don’t mention Elly Mae near me or I goes hog-wild. I done been to the Birfday bash but ain’t seen you yet. Let’s git drunk, raise some hell, and git throwed out.
Ted
Jun 21st, 2010
Intlibber,
Anyone controlling their own market/economy as well as the platform needs to have the situation monitored by outside sources. While on one hand many want to claim it’s a game, we cannot discount the millions of dollars that flow through, or have flown through Supply Linden.
Point being, I think you’ll find that if an audit was performed, that the statistical information supplied to all the greedy hopefuls wouldn’t necessarily relate to any form of reality. Audit the Fed Ron Paul says… and of course thrown out by the powers that be. No matter the necessity.
All money goes to Linden. That wasn’t so bad before all the changes to the TOS that created a complete and utter failure of vision. If all money did not go to Linden, then please Intlibber describe to us how you have failed so many with your ideas of money and banking in SL.
You cannot control which you have no control over. There is nothing in Second Life “AT ALL” that one has control over. Sure, they can rip others off as you very well know by others “trusting”, but in the scheme of what Linden’s tools allow, there is no control. None whatsoever. Linden controls all of it. Period. The market, the world, and everything in it. And anyone who cares to argue the point are welcome to look at the Terms of Service changes from 2005 to 2010.
And that sir, is why Linden should be responsible for the fraud and scamming that has happened within their domain and works since the get go. All based on their advertisement of what Second Life was. That includes all the money “YOU” owe people for banking scams with BNT, and all the money “YOU” owe to people from the fraud allowed on the Linden servers.
Just remember, Madoff may have had a rich life with all the scamming he achieved, but eventually over time it does indeed catch up to oneself. And the penalties are quite high.