How to read Linden: Part 1

What they say:

An Update on the Linden Dollar
Posted: 16 Jun 2010 04:11 PM PDT

This morning saw a decrease in the exchange rate of the Linden dollar versus the US dollar. However, Second Life’s key economic indicators remain stronger than the levels we saw in late 2009, though 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. Linden Lab continues to monitor the exchange rate. Should the average exchange rate change more than 10 percent in any given day, automated circuit breakers will kick in to halt trading for at least one hour.

The first quarter of 2010 saw record economic activity in Second Life. That spike was due in part to the release of the movie Avatar, which drew many new Residents inworld, thus boosting the economy. Recent months have seen economic activity return to levels we saw in the fourth quarter of 2009.

That change, combined with uncertainty related to the corporate restructuring announced last week by Linden Lab, contributed to an imbalance between supply and demand on the LindeX today. Linden Lab remains committed to the Linden dollar as a virtual currency, and to the Second Life economy as one that continues to provide value for Residents, merchants, and landholders large and small.

What they are really saying:

An Update on the Linden Dollar
Posted: 16 Jun 2010 04:11 PM PDT

This morning saw the exchange rate of the Linden dollar shoot up as people panic over our latest hairbrained idea. However, we have been lucky enough to find some stats that we can quote for you to try and make you feel like things aren’t as fucked up as people obviously think they are. Linden Lab continues to watch in fear and intrepidation as residents sell off their L$. Should things get seriously fucked up and the average exchange rate change more than 10 percent in any given day, automated circuit breakers will kick in to halt trading for at least one hour before the panicy selloff can resume.

The first quarter of 2010 saw record economic activity in Second Life. That spike was due in part to the release of the movie Avatar, which we had nothing to do with and was therefore good for drawing many new Residents inworld, thus boosting the economy. Recent months have seen economic activity return to levels we saw in the fourth quarter of 2009 since we didn’t have a decent plan on how to ride that wave of newfound popularity and instead drove them away with a sucky new viewer, lagtastic performance and a search so fucked up it can’t find its ass with both hands.

That change, combined with uncertainty resulting from the wholesale slaughter of a third of our staff announced last week, caused an overall lack in consumer confidence in our company and a resulting massive selloff of L$ on the Lindex. Linden Lab is inextricably tied to the Linden dollar as a virtual currency, and we pray the Second Life economy continues to provide value for Residents, merchants, and landholders large and small because as soon as it stops doing that we are all screwed. And if we are screwed, you are screwed. So stop panicing before we have to restructure all your asses out of a job, dammit (if you get my drift)!

This entry was posted on June 17, 2010 at June 17, 2010 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed.