Second Life’s micro-economy is currently in the grip of a financial crisis, its real, its here and its now! This all started some months ago and is in part thanks to Linden Lab’s sheer incompetence and greed.
Whilst others run around like headless chickens, or bury their heads in the sand, hoping this will all just go away; one company stands tall and proud.
SL Investor’s Bank is that company, seen as the underdog by many, it’s a true success story of one mans vision, leadership and determination to beat all the odds. Whilst others flounder like dying fish plucked from the sea, Tyrian’s entrepreneurial skills keep SLIB going from strength to strength, breaking records, and building a bright future for all.
What has lead to this financial crisis?
Many things have led SL economy to the edge of collapse, many of them had to do with the way Linden Lab handles matters. Undersigned is not alone, far from it, saying that the SL economy is managed like kids in a playground from LL’s behalf, at least sometimes. There are so many things they could easily, fast and efficiently be managed better than they do. Instead, they keep slapping `residents` in the face, with mainland market flood, age verification threatening, which is by the way illegal in many countries, lies, poor communication, and last but not least, gambling ban. It makes sense due to U.S. laws but no warning time was given, apparently people should have understood the ban on search to be the warning, but very few guessed that a ban is coming, a total ban.
I don’t mean to say that people at Linden Lab would be stupid, some of them are very brilliant, nice and polite people. Thanks and Kudos to Spike Linden, for really knowing how to do his job passionately and with dedication, never forgetting the client’s side of things. In my book he is a benchmark for all lindens, and i always feel lucky if he’s the one to answer my request from the concierge team. This is a new market, and I would bet my dollars on the fact that they just don’t realize how different this market and economy is when compared to RL.
In the end, Second Life economy is merely turning to be more First Life like, in the terms of yields, amount of hard work needed etc. Which is both a good and a bad thing. Still for many Second Life is `just a game`.
Biggest problems I currently see in Second Life economy: Land tax which is insanely high (Mainland, almost 10% MONTHLY) and the emptiness of most of Second Life. Majority of the residents just don’t know how to bring the folks in, like pointed in the article lately on Wired. You would think Fortune 500 companies would have the people with wits and talent enough to realize that their marketing efforts in Second Life needs some marketing. Never mind the fact that their approach is wrong. But that’s an other story.
All of that has lead partially to the current situation. Then there are these in-world events, Ginko out of liquid, WSE robbed and the multitude of frauds and scams.
I don’t think Ginko is going anywhere, why else would have Nicholas Portocarrero, Chief Executive of Ginko Financial, finally revealed his RL identity? But he is mostly wrong about something, his liquidity problems, they are not out of his hand completely, there are a lot of things he could do. I offered help to him, offered to buy some of his assets, even putting a larger buy order for Hope Capital stock at the WSE, but he didn’t take them. But at the very least, Ginko has an advertising campaign now on the advertising network SLIB owns, Mainostaulu. That should help him a little bit.
How has SLIB kept on beating the odds?
It’s really hard to say a few particular things, there is so much what has been done. For example, SLIB has the most efficient and easiest land sales system in place. While other realtors don’t like to buy from us, the end users do, a large portion of them. Warm thanks to everyone who has bought land from SLIB!
There are also a lot of people helping SLIB, like Nestor Kembla of Primate, a realtor who’s analytic skills are simply genius. He keeps SLIB up-to-date with forecast of the likely market happenings of next week or two. He has been predicting even the hardest things straight on the spot, and usually within +/- 0.1L$/sqm detail.
Open policies is a strong factor too. Book keeping is open to anyone who wants to have a look into it, and weekly reports, sent to every group member and available at the headquarters to anyone, offer up-to-date financial health and performance information. Every day, every moment, any SLIB group member can see the actual main assets status, simply by opening group info screen and clicking “Land & L$†tab, most of SLIB’s assets are in mainland real estate. True transparency.
Out-of-the-box thinking is definitely one of the reasons. Only the sky is SLIB’s limit, not what most of the market or the most skilled ones do. SLIB has been way different from the beginning, initially offering weekly interest instead of daily, weekly reports, personal guidance and help to those in need.
Brave, sometimes aggressive management, Chief Executive of SLIB, Tyrian Camilo, is not afraid to take strong and brave steps for success, to do the things others won’t do, ask for help, but yet do it all keeping a minimal risk. Asking biggest investors, or depositors as some would call, for their opinions, and sometimes calling a vote or investor’s meeting is definitely one of the strong, unorthodox approaches. One big investor, and a man who runs several very profitable businesses in Second Life, said that SLIB has the oddest bank office in whole Second Life, i take that’s a big compliment. After all, there are couple of boxes of Budweiser beer in the office, and outside of the office is a small garden, with fountains, candles and a place to meditate. Calming.
Communication is a very integral part of SLIB. Even I, as the CEO, take time to help customers and clients directly, also with lesser matters, without even thinking how to profit from that particular situation. Why not? It helps people. People are hungry for information, and to know how their funds are spent.
Big future plans! There are really big future plans for SLIB, some of them are public information, but many of them are kept private until the date is approaching to make them happen. These will be announced one by one as the dates approach. Some of these big future plans are to take dominant place in the real estate markets and advertising sector. But there are way more massive plans for the future when SLIB grows big enough to make them viable options.
SLIB is growing very strong indeed
Just before the gambling ban, SLIB’s assets grew almost two-fold, at the same time as major milestones were reached: 5Million L$ in client funds, and 1Million L$ of Profit, after all expenses. SLIB also just lately broke another major milestone: Over 10Million L$ of total tangible assets, and another milestone is just about to be broken: 10Million L$ of client funds.
During last few weeks, or last month to be precise, a lot of profit records have been broken! Mainland real estate sales daily profit record has been broken several times, and reaching record level often.
Peak land holdings have reached now to almost seven (7) mainland sims for a brief period, and 3rd island has been ordered, and it hasn’t been even a month since the first one was delivered! Even the still undelivered island has already been rented out, also the 2nd island has been rented out, and the first one is almost full. 2nd and 3rd were rented out as full islands.
All this while having well over 20% reserve ratio! At the moment of writing this reserve as pure cash in hand was 23.77%, compared to FDIC Designated Reserve Ratio (DRR) for RL Banks of 1.25%, this is whoppingly large reserve! FDIC can set their DRR within a range of 1.15 to 1.50% under the Federal Deposit Insurance Reform Act of 2005, effective since 1st of January, 2007.
New personnel to help have been recruited, and there will be a recruitment event this coming week for Real Estate sales agents, watch the “SL Investor’s Bank†group for announcement of the event! It was planned for Monday, 11AM PDT, but it got moved to later on the week… CEO of SLIB remembered at last chance it’s his birthday, 6th of August.
SLIB is definitely gaining momentum at a rapid rate. We are increasing the profits all the time and countering the ill-effects of late events on the whole Second Life economy. SLIB will be one of those who survive over these hiccups of Second Life economy and hopefully SLIB will have a role in making Second Life a better place with stronger economy in the future!
These are exciting times, we will keep you updated, so look out for news flashes!
Tyrian Camilo
Chief Executive Officer
SL Investor’s Bank
http://slurl.com/secondlife/Ranthambore/195/225/38
