Linden Exchange

Been watching the exchange for a couple of days. First reason, I have some Lindens for sale, second, just curious about how it moves.

I think I note should be added to the page, explaining to people that "high" doesn't mean you get the better value (or highest) for your Lindens.

I've seen some crazy sales, like today L$759/$1!! Earlier in the day, L$500/$1. I understand desperate sellers, or people who just want money quick selling at L$1 or 2 higher than the average, but... 759? I really do think they are uneducated sellers!

Not only do these sales slow the sales for the other sellers, but they also bring down the value of the linden. Good for some to buy so cheap!

So I propose a brief explanation added to the page, something like "Remember the "higher" the Lindens per dollar, the less money you will get."

It DOES say on the page how much $USD you will get from the transaction. Really, I do not think that people don't understand, but are just being plain azzholes!


OK.....


Not OK,,,

It does say how much you'd get, but I doubt some people sit there putting in different amounts to see. 500L was dumb... 759 I dont wanna say incase the person who did it reads this

I want to buy from the person selling at 2762 Lindens for a dollar

It is most likely an attempt to cause other seller to panic and force $L to further lose value.

The minimum sell order is 1 $USD worth of $L, so a person can easilly sell $L500 for a buck and force the daily high to $L500. Look at all the fuss people make when an extreme high show up, you are playing right into their hands.

The daily high is meaningless without the related volume figure. Look at the daily average instead.

The current view of trades in the past 24 hours is pointless showing only a transacton at what price, it should show the volume verse price instead. It would at least allow people to spot the manipulation attempts.

Well I bought at 500/1... and dumped it right back in at 300. Wont make much (haven't done the math and dont intend to... it will ruin my air head image). Just wish I would have caught that sale at 759.

If the person was selling exactly 500 L at 500L/USD

and you bought it all and sold it back at 300 (assuming you know exactly how much there is, which is not the case on Lindex)

it would have cost you

US$1.30 for 500L (don't forget the 30cents transaction fee)

and you sold it back at 300L/USD

USD$1.67 - 0.06 (3.5%) transaction fee = $1.61 You have just made a whopping 31 cents.
And helped the manipulator get the registered high for the day.

However, the most likely case would be that you have bought up the 500L at 500L/USD plus the next highest sell order (which is most likely around 300)

After all the transaction fees and such... you most likely would have lost money.

Unless LL has a major bug in the Lindex where people always get the best buy rate even if the amount of L at that level is not sufficient.

Ya know, I've heard that many times already and I wonder - who wins with the fall of the linden? Who would actually want the L$ value to fall?

In currency trading, you can speculate to drive the weak currency even weaker, sell off your strong currency for alot more, wait out for the value to increase, then buy strong currency gaining a surplus.

In SL, however, the L value won't increase. It just slipps further down down down down down... like a neverending spiral. Whatever the cause: stipends, incentives, pie. You name it. It just goes down.

So... let's see. I've got a 50K linens. I see the price is 300L for 1$. I set it to 700L.. sell them... then what? L$ go up to 750... what to do next? I'm not sure speculation is the answer to what's happening.

Well all I know is if the currency continues to fall I am just going to sit on my currency. It does not make sense for me to follow these stupid people who keep driving the value down. The exchange is not reflecting any real value. It is merely being driven down by people wanting to sell fast by undercutting, then more people start selling at that bargain rate. There are no safeguards. In the real world exchanges, when insane selloffs occur they shut down the exchange. 295 is my absolute limit. I have about half a million sitting at 295 and even more from January sitting at 265 until I gave it to a friend in need. If the value continues to drop I am just going to start accummulating linden currency taking it out of circulation until things are brought under control.

Imagine a scenario like this: You are a land baron, the Tier revenue you receive generate excess USD that more than cover the expenses of the holding firm (staff salary, electricity.. all the stuff) you have excess revenue you want to reinvest into SL, how to do it?

More land? sure! but managing land and the related client support would need more time from you and your staff (increase cost as well)

Buy up successful businesses/ content creator accounts/ or rights to designs, another decent investment. However with SL constantly changing and new features introduced, useful/ profitable contents life is limited (measured in months)

What about holding $L? It cost nothing to hold, you take more or less the same risk as holding anything else in SL since 90% of SL contents are measured in $L. The draw back is that it does not have a revenue stream.

A smart way would be to diversify a little from column a, a bit from column b...

With the constant complain and continenous devaluation of $L. LL is under pressure to stablize the $L market.

Things that LL can do are: Remove Dwell (already on it's way), reduce/ remove stipend (frequently talked aboui) and increase sink (suggested by users, but no comments from LL)

In all cases, reduce the net influx of $L into SL by either reducing the supply or increasing the demand. Both has the potential to increase the $L value.

If a group of players decide to work together and try to corner the $L supply in the future in anticipation of LL's monetary policy? They would like to kepp $L low as long as possible, buy them up, hold on to it until LL reduce the money supply and use it in the future like OPEC is using their oil supply as a long term revenue stream. However, better than oil, since these large players are likely to be land barons, people need $L to pay their rent and buy their land. They create their own demand for their product.

It all depends on what LL does in their "monetary policy" of course.