Why the panic ?

... or perhaps it's just no fun without all the drama

I copied a transcript of Philllip Lindens appearance at the WA last night and edited out the noise ... basically this is what he said ...




Philip Linden: But to the folks thinking about selling L$ right now on GOM at these low prices...

Philip Linden: Bear in mind that when our exchange comes online,

Philip Linden: people will be able to pay with their credit cards rather than needing paypal.

Philip Linden: This means there will likely be more demand for currency.

Philip Linden: Since it will be easier to buy.

Philip Linden: Which rationally will increase the price.

Philip Linden: Account credit or we pay you - up to you flying.

Philip Linden: Paypal will be an option as well...

Philip Linden: just like it is for signup.

Markets don't like uncertainty hence the panic. Theres a large big unknown ahead of us and so many are probably debating whether its safe to be in the market or to cash and wait until the dust settles.

I wish they'd stop talking about "account credit" or at least talk about that second. It's freaking me out.

Why the panic?

Because LL has an unblemished record of failing to deliver. Go look at 1.7 Prevew...

Oh, and don't hold your breath waiting for LL Exchange to come on line, or be surprised when it's bugs eat your US$ if it ever comes online, or wonder why 'support' does nothing to sort the ensuing mess out.

duh ? I mean ... duh ?

Why the panic? Because philip is wrong. I don't see proof of any of this, I think the market will crash with the new system, everyone undercutting everyone else, and no one wanting to buy.

Everyone has been undercutting everyone for a year. And life goes on.

There's no trust. Thats why this system will fail. GOM had a level of trust everyone liked, it was safe and affective and did the job.

SL has proven nothing in regards to money.

thats sort of how it ran on GOM - the everyone undercutting everyone idea. everyone wants more bang for their buck, be a seller or a buyer.

i do hope the new system won't list names. shouldn't it remain someone anonymous?

either way - thank you for posting the cliff notes of what phillip had to say - thats all i really needed to hear

I, for one, welcome the option to pay land fees with linden sales automatically.
They will still let you cash out so... there's no reason to freak out

I heard that there will be no buy side, that is not a good idea at all. GOM did run it this way, but it also had a buy side that people would go over eachother on, and it allow day trades. The day traders helped absorb big dumps so the market would not fall into a tailspin. If this new market has none of this, what is to stop the market from just falling?

fair enough, that is a hefty change.

it confuses me though. if there is no buy side then the "buyers" won't be allowed to set what they believe is the value of the L. its all left in the hands of the "sellers" to decide. so wouldn't this actually raise the value of the L?

Have you seen the undercutting on the market? All the buy orders that are filled are also "undercutting" the best sell price. I think we will see a market that has nothing but downward pressure on it.

Well that is one point of view I guess, don't know why you'd think this, given that LL should have the ability to stop people gaming the ( very small ) market which GOM failed to do imho. If you turn out to be correct then the future is bleak for people like myself who rely on making enough from sales to hold land to provide nice things for others. I for one cannot justify paying tier out of my RL money. If the Linden dollar was to become worthless many creators will simply be forced to leave and SL will become little more than a chat room. ( Some might say that's already happening ). I think LL have plenty of incentive to make sure that doesn't happen. I've always seen being able to make a profit from Lindens as more of a bonus incentive for content creators, not as a method to to make a pile of US dollars. But of course I'm a minority because I don't care about profit for profit sake. I'm also optimistic LL actually do know what they're doing, much more so than the forum harbingers of doom, amateur economists and silly people who shout about how useless LL are.




This is a ridiculous statement, where is there no trust? I have far far more trust in Linden Lab than I ever would or did have in 2 unknown people running a web site called the GOM. And the last 24 hours have born this out.

Two words -- supply and demand. There have been days when the buy pressure caused the sellers to "overcut" each other and the price rose.

Supply and Demand.

i may not say much in forums, but i read the hell out of them and i have been watching the market. and to be perfectly honest, i'm actually asking for clarity on why this would put so much pressure on the L.

as i see it, if the buy side isn't undercutting the sell side wouldn't that remove part of the downward spiral?

if of 200 sellers the lowest sell price is 3.50 / 1k. along comes seller 201, the dirty undercutter, and lists for 3.40 / 1k. ooh a drop.

but what we wouldn't have is 200 buyers saying "screw your 3.50 / 1k, we want 3.20 / 1k" which could inevitably lead the next seller to hit the market hard by saying eh, i want to sell fast so i'll take that 3.20 / 1k and save myself the wait time.

correct me if i'm wrong. i don't pretend to know it all. if that were the case the majority of my sentences wouldn't end in ??

ROFLMFAO Blaze *nods*

good lord all these post I just spent the last hour reading, trying to catch up on what is going on. I try to stay quietly on my sim, run an honest business, mind my own business. All these post are a major overload.

I can't help feeling like a little shoe rolling a dice... hoping to pass by the owners of Park Place and Boardwalk, pass go and collect 200...

Hope something is settled soon... and I don't mean just this one situation either. Seriously I feel like I am in a real monopoly game waiting...waiting...waiting...

When it comes down to it though people have to remember in the end, many devolopers and designers do pay RL bills and game bills off our lindens, it isn't just buying a basic account and getting all profit for some of us, we are paying bills like a whole sim that cost the same as a car payment or even a house payment for those who own multiple sims... That is alot of money for a game.

. Many also just trying to make ends meet. Hope something is resolved because Monopoly is only a fun game for the richest people. Hope the drama stops.

I don't know it all either, I just pretend to.

I see markets as a give and take. If seller x wants to sell right now, regardless of price, there are buyers that are waiting, that basicly say, I really don't NEED to buy L$ right now, but if I get a really good deal, I will. So they place a buy order at some price and just wait. They help keep seller x from placing his order at less then the currect sell side. Thus when buyer z comes and says, I need my L$ now! He will goto the sell side and take what he needs. He will pay the higher price to satify his need at that time.

With the new system, seller x, will just place the order at a lower price to sell it quicker. The "stand-by" buyers will not be there waiting for a deal, so the price drops. Now when buyer z comes and needs his L$ now, he will be buying from seller x, at a lower price. This cycle will continue until everyone just gives up.

okay see - that makes sense to me. so ... thank you.

Robin's response:

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I can only assume that the web exchange might now be a bit different now that an alternate currency exchange (GOM) isnt around to actually make a market for the L$. The pending system, as explained by the governor, only facilitated the transaction of currency, it didn't make the market for the currency.

I suppose its fun to speculate, but due to recent unforseen circumstances, I think it's safe to say that the system will be different...atleast until another alternate currency exchange is introduced into the market.

My new Sig.

Maybe it will, maybe it won't. I really don't know. I wish i did. If they are already testing the new system, then maybe it is too late to make changes to it. Changes mean more testing, testing means more time, and time is not LL friend right now.

Eggy, where is this stated that people will still be able to get US$ (or EURO$) when they sell their L$? I have seen statements about being able to use it for Account Credit, but none that state users can actually get cash(check). I am curious about this. Can you (or anyone) point me to where the Lindens have said this will be possible?

I asked Philip last night about how we were gonna get our cash when we sell the L$....


Also, he said something about being able to use paypal as well.