Yet Another Run On A Virtual Bank

from the but-don't-get-too-excited-over-it dept

A couple years ago, there were stories about how there was a "run" on the virtual banks of Second Life. Later on, some reporters tried to suggest that the Second Life "credit crunch" was a predictor of the real world's credit crunch. That wasn't even close to true. Yet, with yet another story about a virtual world, we're once again hearing in-apt comparisons to the real world. The latest is a run on a bank in the game EVE Online. In this case, it looks like one of the guys involved in running the "bank" simply took some of the virtual currency out of the bank and exchanged it for real world cash (about $5k). The BBC headline calling it "billions stolen" is inaccurate, since it was only "billions" in the meaningless virtual currency. In the real world, it translated into not very much at all. The BBC article also calls it a "virtual version of the credit crunch." Again, this is quite inaccurate. In both the Second Life bank run and this bank run the problem was simply outright fraud by the "virtual banks" or those who run them. That's quite different than what has happened with the real world credit crunch, and it does little good to pretend otherwise.

Filed Under: bank run, eve online, scam, virtual bank, virtual worlds

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    technomage (profile), 6 Jul 2009 @ 8:05am

    there is some corollary...

    Eve touts that it's economy is basically that of a small country, roughly 80 trillion ISK (their in game currency). He stole 200bln. That is a quarter of 1% of the total money in game. How much of the total money in the U.S has the banks caused to be lost? The banks were a direct influence on the car manufacturers. The banks were the direct influence on the housing lenders. All this trickled down due to mismanagement. The same is happening in EVE. The difference is, EVE doesn't have a government offering bailouts to the people that lost money. Yes, there will be a credit crunch in eve. That big of a loss is going to affect prices for a long time. Just like that last big issue in EVE, the starbase Exploit - but that is a different story.

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