Second Life’s financial underpinnings under threat?

The past week has seen some significant economic turbulence from two fronts. The gambling ban, combined with the defection of multiple businesses from the World Stock Exchange (WSE) to the International Stock Exchange (ISE) has created a fair amount of uncertainty for business in SL, particularly the native businesses.



There is some well-reasoned analysis that a recession may be on the way. Even looking at the basics makes this a reasonable proposition: less cash flowing, business uncertainty and falling land prices and the assocated consumer demand. Unless Linden Labs know something we don’t in regard to population growth, things do look a little grim. Does this pessimism extend to SL’s financial underpinnings being under threat? The gambling intervention certainly made a fundamental change to the economic foundations but the WSE / ISE / AVIX / Ginko saga isn’t likely to cause long-term ramifications as long as there some confidence from investors and businesses that at least one of the stock exchanges is a viable and transparent entity.

We’ve contacted WSE CEO LukeConnell Vandeverre multiple times during the week with no success, in order to give him the opportunity to give his views on WSE’s fortunes – something he did in detail previously. We’ll keep on trying.

(Update: an interview will appear tomorrow)

A sampling of coverage of financial goings-on in SL over the past week:

1. Mises Institute – The Coming Second Life Business Cycle

2. Your2ndPlace – Being Even-Handed About Ginko Financial’s Situation

3. Woolly Wildcat Writings – Ginko Doubles Down – Bigger Bust, or More Secure Future?

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