Thursday, June 17, 2010
Linden Dollar Tanks, Recovers
Location: Watching the Virtual Exchange Rate
No matter how clearly Tateru Nino explains it, the voodoo economics of Linden Lab escape me.
I have been keeping an eye on LindenWatch at Twitter ever since the announcement by Linden Lab that the Linden Dollar had declined against government-issued currencies.
275L to the US Dollar has long been my benchmark for the currency. Yet early this morning, the rate rose to 444L. If you wanted to cash out some money under those circumstances, good luck.
That sort of whipsawing must stabilize if large landholders, like Melody who appeared on a panel with me recently at Treet TV's "Designing Worlds," are to keep paying their tiers to Linden Lab. These land barons pay in real-life currency into the Linden pot, and Melody admitted that her tier runs $20,000US a month.
Her renters, however, pay up in Lindens. This current-rate fluctuation--or is it a trend?--could make bigger mainstream news than the layoffs if the Linden Dollar does not stabilize. I don't know if the current return to 280L to the US Dollar is a temporary calm before a bigger storm.
What arcane formulas get employed to set the exchange rate? If there is even a hint of manipulation by the Lab, eager to increase their income, the law suits will come flying.
If you want a clear analysis of how the crisis relates to the iffy short-term future of immersive 3D worlds, sit down if you are really in love with SL, then read Roland Legrand's post at Mixed Realities.