Is LL thinking on a way to change Linden directly to Euros ?

[Bethesa Hancroft]

Now that we can't do it via Virwox, ELDEX or similars... I've been looking and now for every 50K L$ I want to exchange to euros I loose aprox. 16 euros I didn't before with other exchange webs (where you could do directly change L$ to euros, no L$ -> US$ Dollars -> Euros).

[Amethyst Jetaime]

On a blog post dated 5-17-2013 they stated:

"We know that users are also concerned about the length of the LindeX’s cashout process and the limited choice of currencies when selling L$. We’re currently investigating ways to improve that experience for users while still providing superior fraud protections, and hope to hasten the cashout process and offer new currency options in the future."

 

 

[chrismignon McDonnell]

The best is LindenX other exchange have big commisions

You can do it in paypal

[Sassy Romano]

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chrismignon McDonnell wrote:

The best is LindenX other exchange have big commisions

You can do it in paypal

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Chris...There are NO longer other exchanges so it's not a case of "best", Lindex is the ONLY one.

Clearly, the poster found that other exchanges were more favourable.  It's not just the exchange rate that was the issue it seems but the charges associated with the conversion and nothing to do with commission.

Other exchanges allowed direct deposit to bank in native currency rather than going via Paypal and its associated charges.

[Amethyst Jetaime]

You can only cash out using the Lindex anymore.  Third party exchangers were forced to stop trading L's and can only sell them now due to new money laundering regulations.  They are now called Third Party Sellers.

[Dresden Ceriano]

You're asking the wrong people... we are all just fellow users and, as such, know nothing about what LL intends to do.  In other words, your guess is as good as ours.

...Dres

[Bethesa Hancroft]

No, LindeEx exchange is not the best... is now when I am forced to work with LindeEx exchange when I have that loose, not before. May be if you live in USA & you need US Dollars is the best option, but not when you've lost with comissions changing L$ to Dollars & again when you change Dollars to Euros via Paypal

Before with other exchange webs you could do it directly (L$ -> Euros) without the loose I'll have now

[Qie Niangao]

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Bethesa Hancroft wrote:

Before with other exchange webs you could do it directly (L$ -> Euros) without the loose I'll have now

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This has been posted before, and I've asked before, but never got an answer, if anybody knows: How were those third-party exchanges able to offer a better rate? Were they actually accepting the risk of holding L$s and buying and selling them with Euros, not immediately clearing all trades through the LindeX (in US$s)? That seems crazy risky: even though both L$s and Euros aren't very volatile against the US$, still, the L$ must ultimately clear through US$s, so an exchange that held L$s would bear compound FX risk for two currencies simultaneously.

I mean, it's possible... it would be like running your own make-believe FX currency desk (well, slightly worse, because of that compound FX risk--not to mention that one of the currencies is backed by the full faith and credit of sparkleponies)... but until seeing these posts, I'd always thought these third-party exchanges were more conservative than that.

[Perrie Juran]

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Qie Niangao wrote:

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Bethesa Hancroft wrote:

Before with other exchange webs you could do it directly (L$ -> Euros) without the loose I'll have now

---

This has been posted before, and I've asked before, but never got an answer, if anybody knows:

How

were those third-party exchanges able to offer a better rate? Were they actually accepting the risk of

holding

L$s and buying and selling them with Euros, not immediately clearing all trades through the LindeX (in US$s)? That seems crazy risky: even though both L$s and Euros aren't very volatile against the US$, still, the L$ must ultimately clear through US$s, so an exchange that held L$s would bear

compound

FX risk for

two

currencies simultaneously.

I mean, it's

possible

... it would be like running your own make-believe FX currency desk (well, slightly worse, because of that 

compound

FX risk--not to mention that one of the currencies is backed by the full faith and credit of sparkleponies)... but until seeing these posts, I'd always thought these third-party exchanges were more conservative than that.

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They either had to have built up a Cash (real currency) and a Linden Dollar (SL currency) reserve or have had a line of Credit with a Bank or other financier or the Founder used their own funds to maintain a reserve in both Real and SL Currency.

We also know that they used the Risk API that LL provided to assess transactions.  There were enough posts from people in these threads about their transactions being delayed on the TPE's to know that not all transactions were instant.

[Brayla Ravenhurst]

What the lindens should have done is outright hire virwox to do their exchanging for them, because they were doing a better job than the lindens anyway.  I know - radical thinking - hire a financial company to do financial stuff.