wherorangi wrote:
Uvas Umarov wrote:
As to devalueing the linden, we are seeing that happen right now. For the last several years, supply linden sold just enough lindens to keep up with the demand for them. Thats why you can see the straight line of the price graph. That is up until a few months ago when supply linden went bonkers and put in a **bleep**load of sell orders. We can know this is true because we can see the demand for lindens hasn't changed.
It looks to me that supply linden has vastly curtailed its amount of sell orders from sometime yesterday.. If he keeps this up, order will return to the lindex.
i just pick on this
it may not be Supply Linden either. A lot of the discussion (me included) has been about what would be the reasoning of LL if it was Supply Linden. That the reasoning might make some limited sense, doesn't mean it is true that it is Supply Linden
it may be that some resident started this plunge off just by using a trading program to short the L$. Even just for fun, just to see if they could, and maybe make some few hundred dollars out of. Or even to just end up with a stack of L$ so to have lots of inworld spending money. A stack they wouldn't have got otherwise
it doesn't take a lot of money to create a short, given how people react to abrupt changes on trading exchanges
it takes substantial money to make substantial money from a short. If the person is only in it for a few hundred dollars tho then not so much
in this case then if the Lindex has settled then it may simply be that the resident (or now possibly residents) have been warned off by Enforcer Linden
How in the world can you "short" lindens? A short is a derivitive contract where you promise to sell a stock at a certain price. On the Lindex, you can put in a buy order at a certain price, or you can put a sell order in at a certain price. There is no mechanism to allow "shorts".
What could happen that a large stampede of residents decided to all sell at once. But this doesn't explain the facts. If it was a mad rush to sell your lindens, when you saw your price has been passed by, you would cancel your order and make another one at a cheaper price. What we do see is 400 million linden's worth of past by sell orders just sitting there. That is like 1.25 million dollars. Only supply linden wouldn't care what happend to 400 million linden sell orders because he just creates them out of nothing. he doesn't pay for them, so it doesn't matter to him if they just sit there.