Mon 08 Sep 2008

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Second Life bans virtual 'banks'

Unless they're real life banks

LINDEN LAB, proprietor of the online virtual world Second Life, announced in a bog post that it will ban all in-world virtual "banks" and financial companies from January 22nd.

The decision was apparently motivated by the appearance of what amounted to Ponzi schemes masquerading as "banks" within Second Life. It wrote: "Since the collapse of Ginko Financial in August 2007, Linden Lab has received complaints about several in-world 'banks' defaulting on their promises. These banks often promise unusually high rates of L$ return, reaching 20, 40, or even 60 percent annualized."

However, it will allow actual banks and financial institutions that have real-world registrations or financial institution charters to operate in Second Life, it stated.

What with real life Wall Street investment banks being forced to write off billions lost on dodgy mortgage securities, we're not entirely sure that even that's wise. µ

L'INQ
Second Life blog

Comments

A bit more to the story

Of course the fact that Linden Labs outlawed gambling might have something to do with it.. (a normal bank would have collapsed just the same without an outside money influx)
posted by : Tijl, 10 January 2008

A decidedly interesting experience

The experience in failure that is Second Life is exploring whole news ways of failing. I applaud the continued effort in charting as of yet unexplored venues in failing miserably, horribly, abjectly, and wait with great anticipation a success in failing unnoticed.
posted by : Pascal Monett, 12 January 2008

My time in SL has taught me that,

This game is just a big waste of time, money and effort. I will admit, there is some neat things you can do, however, Far too many see it as a place to go and have cybersex.
posted by : Viscountalpha, 13 January 2008
IThound
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