Lindens at 308 per U.S. Dollar --- Who's the Idiot?

I mean really, what idiot offered their lindens at 308 when the next highest priced was 301.

Whoever you are, I have a sim i'd like to sell you for $10,000.00 US, or, I'll buy all your Lindens at 400 per u.s. dollar.. or even 500 per u.s. dollar if you prefer, your choice, then you can claim to have sold the most lindens per dollar than anybody in the game.....

Looking forward to hearing from you...

LMAO

Marc Woebegone

People can offer their Lindens forsale at any price that want.
You don't dictate they have to ask for more when they are willing
to take less.. And if the market doesn't support it, then its a
buying opportunity. Buy it at L$308 and sell it for L$302


Best buying rate: L$308 / US$1.00
Last trade: L$308 / US$1.00
Last close: L$298 / US$1.00
Change: +L$10 / US$1.00
Today's volume: L$1,333,448
Today's open: L$298 / US$1.00
Today's high: L$308 / US$1.00
Today's low: L$298 / US$1.00
Today's average: L$299.81 / US$1.00

And make a 1.6% loss.

Thanks for the tipoff, I've just bought myself a little bargain.

Lewis

"Let's see...I want to sell L$500,000 *now*. Right now the highest price is L$301/US$. I know if I put mine for sale at L$302/US$, someone will just jump ahead of me and mine won't sell right away. I'll place them for sale at L$308/US$. I'll only lose 1.9% of my total profits by setting my price that low, and I'll get my currency sold faster."

Oh, and why would this person sell to you for L$400/US$ when they can sell them on the market for L$308/US$?

- Almost right, Ord-

L$308/USD amounts to 3.247 cents per every ten linden.
L$302/USD amounts to 3.311 cents per every ten linden.

Since you're selling more, you're getting a profit, not a loss:
X(3.311-3.247)/(X*3.247) = 0.0197 ~ 1.97% profit.


Try to think of it as the cost of one USD in Lindens rather than the reverse -- the only reason the exchange rate isn't setup in the more intuitive format is because it's a headache to talk about fractions of a penny.

But really, the topic question remains unanswered...

Your wrong

400k @ 308 = $1298.7 + $0.30 transaction fee total cost $1299
400k @ 302 = $1324.5 - $46.36 trasaction fee total income $1278.14

profit/loss
-$20.86(-1.6%)

Fees.

The problem with that theory

L$310 / US$1.00 1 L$1,100

If someone wants to sell NOW they will post ahead of the best rate the only reason to take this large of a loss skipping so many points is to attack market stability.

Maybe we need an alternative currency we can use instead of L$, which is regulated by an individual so that it doesn't lose its value Such an obvious idea I wonder why nobody else has thought about it.....

Lewis

Not true. I've given a reason to skip several price points -- the desire to *not* get leapfrogged by someone else.

You have little faith in open markets and the invisible hand, it makes me wonder why you are even on SL, and this board in particular.

Even if I sell some lindens at 1000/1, it will just be a little blip in the market data graph, it's not going to induce people to start selling theirs at 1001/1, they will just look at me as a loser throwing money away, the same way you look at whoever sold at 308.

To seriously manipulate the market, you'd have to dump hundreds of millions of lindens on it at a loss. Then it's entirely possibly that the market would just correct before you could ever buy at "panic prices"... it's high risk and low potential profit.

If anything, your posting is likely to have more of a negative impact than the actual sale. Exactly who is trying to manipulate the market here?


EDIT: clarified

Not true? are you intentionally ignoring the fact the 308 got leapfrogged anyways? lol

Of course they can sell for whatever they want... no ojbection.. just why... lol

Based on the rest of this post I assume this is directed at me since i made the manipulation call. How does the fact people attempt to manipulate markets and the fact they can be manipulated(general fact not specific to this sale or market) indicate little faith in open markets?



The ENTIRE economy is about 600 million L the market is only about 20 million L and the daily volume is only about 7 million. I don't know WHERE you are getting your hundred millions from but umm lol



Maybe someone who has 8 digit linden balances and wants to sell her A$$?

Lets also not forget that L$308 today might look like
a bargin in a few months when the value is L$350.

ROFLMAO! If you loose a little on each sell NO amount of volume will ever compensate. A lot of little losses and only add up to a large loss.


And back to the subject:
I hate to point out the obvious but, the price of Lindens will continue to rise. no matter what anyone does to try and stop it. LL has received $11 million USD in Venture Capital. The person or company who funded that will want to see a profit. If you watch closely you will start seeing many small changes to the game. I could already note quite a few.

The price will continue to rise for sometime if not forever. No where have I ever seen it stated that LL will not buy and sell Lindens itself. They own this market. They report to no one, except above mentioned VC. They can and will do what is needed to make the company profitable.

You could demand disclosure of transactions but that's really in no one's best interest. You should continue to resist it as best you can but, it will continue to rise. I'm betting on a L$500/$1USD target. I'll continue to sell mine at the lowest price I can manage and dump them often to avoid the long term rise. I'll also from time to time keep some out there below market value in hopes to cause a dip.

On the other hand you could just buy $1USD worth at L$250.

If that little is a net loss, you are correct, but if the loss is only in the amount of profit your making... then it's not a loss at all, is it?

The process is recursive. I stand by my original statement.

Spork spork spork...

The VC didn't invest in L$'s.

The % of revenue LL would make off of minting and selling directly via the LindeX... without causing MORE serious damage to the L$ value is negligble compared to the premium and tier payments they receive.

It's not, though. Buy and then sell at a rate that doesn't account for the processing charge and you just lose money every time you do so. It might be influential in driving the price down, but you can't keep doing it.

One would assume that these people dumping huge amounts of L$ onto the market to undercut others are smart enough to do it at a rate that will mean that nobody can make a profit reselling immediately.

This is purely driven by impatience, not lack of demand. Every time I put L$ up for sale (usually 150-250k) it sells within a day if I put it at the lowest rate without undercutting what's already there. The only thing driving the value of the currency down is the sellers, not a lack of buyers. I really wish LL would pick an exchange rate and let that be that. If people want to play at a fluid downward spiraling market let them go to a third party site and sell themselves short. This is really getting ridiculous. It was a bad idea when GOM did it and it's a bad idea here.

Profit is profit. Loss is loss. A little loss is still no profit. We can only hope that he meant less profit.



I'm not saying that they are trying to make money from selling Lindens. I'm saying that they are manipulating the market gently upward. I also openly admit that I have no proof. There's probably no direct reason. I doubt it affects the bottom line at all. BUT IT LOOKS GOOD. Especially on the market charts. It's no different than allowing anyone with a cell phone to sign up for a free account or two (for explosive growth of the user base), removing the anti-idle clause from the TOS (for many more users online at a given time), Or blogging about "tipping points" (Ben Linden's Blog). It all LOOKS GOOD.

And having said all that, I also want to point out that there's nothing wrong with it. While it was stated that LL was "not for sale", it was obviously open to investments. Which is a partial sale but let's let that one go. The entire exercise to make LL look good was no different than washing your car or cleaning your house before putting them on the market. And it can always be claimed that you were just cleaning your house when you got that offer.

At the end of the day what matters is, LL DOES look good. And this helps strengthen it over the long term. And those of us who are making money from it will benefit long term by it surviving. I'm playing this game long term, a few $USD less in exchange for it being here in a year or two is well worth it.

It's not just impatience - it's a perfectly reasonable tactic by people who hold and make lots of L$ to drive the exchange rate up so that they can make profits but smaller traders can't, thus driving the smaller traders out of business and eliminating competitors.

Well, you know, I say "reasonable" - I mean reasonable by the standards that say any behaviour in the "market" is okay.