Linden Xchange Rate very stable

[Rya Nitely]

Not spooked by the virus to cause it to go ballistic, unlike other unknown things that we debate about, so thank you to everyone for staying calm.

But Ebbe did indicate that he expected the rate to stabilise and he was right! No virus is going to change that. 

[Rya Nitely]

and I hope people get my underlying message here - that the Lindex is not so easily spooked!!! Without intervention it stays stable, like it did for those several years. Nothing spooked it then either.

[Iren Tinkel]

you know, i feel myself weird about it😀 suddenly million lindens disappeared from Lindex and rate goes to numbers that we did not see for year or so. What it was?

[OptimoMaximo]

On 4/6/2020 at 8:19 AM, Rya Nitely said:

But Ebbe did indicate that he expected the rate to stabilise and he was right!

Yeah of course he was right, he knew full well that once the desired new price was met, things wouldn't change anymore. Until a new price is needed for their financial benefit that is. 

[OptimoMaximo]

8 hours ago, Iren Tinkel said:

What it was?

What was it? Currency manipulation over a long time span to take a bigger cut than the announced fee increases, to cover up a cut percentage higher than the announced one 

[Mollymews]

4 hours ago, OptimoMaximo said:

Yeah of course he was right, he knew full well that once the desired new price was met, things wouldn't change anymore. Until a new price is needed for their financial benefit that is. 

it also works for residents who are not in the USA.  In times of global troubles the USD appreciates as money flees to the safety of the USA

the non-USA residents get more L$ for their USD when they buy. A USD which costs them more to buy in troubled times.  The non-USA creator shopkeeper gets less L$ for their USD but more of their own currency when they sell their USD

while this might not seem fair to USA residents, in the greater global market the benefits of a strong USD come elsewhere. Like anything bought from another country will cost less when paid for in USD

Supply Linden has always impressed me. They run the Linden Central Bank (manage the L$ money supply) as good as, if not better than, many RL central banks

 

[Iren Tinkel]

On 4/19/2020 at 3:31 AM, OptimoMaximo said:

What was it? Currency manipulation over a long time span to take a bigger cut than the announced fee increases, to cover up a cut percentage higher than the announced one 

is that legally?

[OptimoMaximo]

3 hours ago, Iren Tinkel said:

is that legally?

Manipulation is never official or openly performed under the sun. The mechanics leave evidence behind, though. 

[Charlotte Bartlett]

8 hours ago, OptimoMaximo said:

Manipulation is never official or openly performed under the sun. The mechanics leave evidence behind, though. 

What is interesting to me (and I am sure Supply Linden had an enjoyable morning) is how from Jan and Feb on average there was USD 1.7M (approx) showing for sale on the Lindex.  There is now only USD 626K (approx) this evening so that makes me think buyer pressure  (as I typed this a larger few sales went in so + 18K USD approx)

The weekend purchases (assumption due to the influx/reuse of SL during this time) - started to push the rate down by pure velocity on the available sales open.  We were seeing 1.9-2M Linden Dollars selling an hour on Sunday evening whilst a few of us watched for a few hours.    That's obviously quite approx as we don't get the actual metrics, we can only see the data on the Lindex page.

At 11pm EST last night - we were at:
47.8M at 257
18.7M at 256 

This morning at Noon EST - we moved to:
50M added at 259 (huge sale appeared)
1M added to 258 
11M  added to 257 
23M added to 256
Rates below all stayed the same (within a few 1000Ls) 

I am sure as Supply Linden woke up this morning, they saw there was pressure for the Linden Dollar to appreciate against the dollar as a result of all the buying volume with a hectic weekend (it felt a bit like the early days!), so they may have thought they needed to inserted a sale themselves to take, what they perceived as, pressure off.

Funnily enough, that additional 50M L (193K USD) popped into the market early this morning very quickly.   What was unusual (to me anyway) is it went in at 259 when there was only 1M for sale at 258 at the time it appeared.  

I think we know all large scale sellers (e.g. land barons) would not place it there, as  it would lose them several hundred dollars (fees not accounted for) versus 258 and close same day / cover any USD obligations they had due that day.  

That additional 50M at 259 slowed the market after the weekend pressure, so by end of day the 258 sales started 24 hours behind where they could have been.  (Then 4M appeared as I typed this,  but I assume a large creator or land baron had to move out their money to USD).

On Sunday at 8pm a few hours before the above was only 6M available at a 256 to give you an outline of the original figures at those lower rates and how quickly they would deplete.

Dependent on what side of the fence you are on, personally I found it a positive move to see the volume drive some reduction in the selling rates. This helps small creators who likely are relying on their SL income during this time.   It would be good if Supply Linden could relax a little and let us settle around 256 (at least) during the busier times.

I wonder what we will see tomorrow morning!

Edited April 21, 2020 by Charlotte Bartlett

[Charlotte Bartlett]

Today we are down to 68/69M at 255 and 521K USD available across the showing rates.  As comparison again on 15th January 2020, before so many people were at home, or just starting to be at home across the world - there was 1.8M USD available for sale.     

Looks like Supply Linden is letting a bit of controlled and comfortable appreciation against USD happen which helps those small creators we mentioned whilst volumes of purchases on the Lindex are up.

I hope they don't come in tomorrow and see a push back to 257 or we see anymore strange 50M L$ sales inserted tonight/tomorrow two points above the market.  Instead putting sales at the 254 rates and below for those who have a week plus to sell.  I suspect some sales may be inserted into the lower rates in addition to "cool" off the drop in rate so it doesn't move too fast.

If we can keep this on a considered and sensible track, the rate can continue to be stable/slightly lower gradually (how I would love to see 249 again based on current velocity).    

Once this situation is over, I am sure we'll then see the rate creep back up as that growth slows back again - but if nothing else, perhaps some of those people who got back into SL, or more engaged may stay - let's hope!!!