Avatar Losses Close Banks - Shady Deals Close Second Life Banks

Login  |  Join Now (FREE)!
Trend Spotting, Cool Hunting, and Innovation Trends
    New (40+/Day)    Tech    Fashion    Sex    Pop Culture    Celebs    Business    Eco    Art & Design    Bizarre
   

CAN YOU GUESS WHAT'S NEXT?

Next Trend

[More Choice]

Going Like Sixty
On: Jan 12, 08
1964 Trends
301 Comments


Avatar Losses Close Banks - Shady Deals Close Second Life Banks [Edit]




Avatar Losses Close Banks - Shady Deals Close Second Life Banks 482 Views - Click for Larger Image

Second Life has been forced to close all of their banks because of fraudulent business dealings. 

Linden Lab, the owner of the popular virtual world, had taken a hands-off approach to the virtual banks, saying they were not responsible for actual transactions, just the software. However, they eventually shut down all the banks that were unable to prove a government registration statement or financial institution charter. Apparently none could.

"The so-called banks are not operated, overseen or insured by Linden Lab, nor can we predict which will fail or when. And Linden Lab isn't, and can't start acting as, a banking regulator." The company wrote that "these 'banks' have brought unique and substantial risks to Second Life, and we feel it's our duty to step in. Offering unsustainably high interest rates, they are in most cases doomed to collapse--leaving upset 'depositors' with nothing to show for their investments. As these activities grow, they become more likely to lead to destabilization of the virtual economy." The about-face came six days after Technology Review posted a story that described avatar losses and cited the possibility that one virtual-bank meltdown may have produced aggregate losses of some $700,000 in real money to many hundreds of Second Life "residents" in a manner that would be illegal in the real world. (See "The Fleecing of the Avatars.") "I think the timing may well have been due to [that]story," says Ben Duranske, an Idaho lawyer who has been closely following the complaints of Second Life participants. (technologyreview)




Via: technologyreview  


Bookmark
Embed This Trend
Send to a Friend
RSS Feed







Add this to Your
Trend Portfolio
Collect Favorites, Add Comments,
Submit Trends and Earn Money
Trends


Comments:




Latest Trends Newsletter
Latest Trends Newsletter
trend newsletter
Trends RSS Feed
Trend Hunter Toolbar

Latest Trends RSS TREND HUNTER is the world's largest trend spotting and cool hunting community. It is an explosion of cool, fueled by a global network of trend spotters and cool hunters. Innovation and strategic advantage hinge on the ability to anticipate the latest trends and identify the next big thing, like this post about, "second life banks." By tracking the evolution of cool, Trend Hunters generate ideas, stimulate creativity, and ultimately unlock cool.

About Us   Trends   Trend Reports   RSS (98 Flavors)   Innovation Keynotes   Tips / Contact     Join
0.9209
Trends and Content Copyright © TREND HUNTER Inc. All Rights Reserved.