Second Life Currency Crisis?

Money has been funneling out of Second Life's economy through the first week in November, posing a threat to the balance of the Linden currency against the U.S. dollar.

Second Life, the massive multiplayer online world, allows users to log on through the Internet and create 3-D computer-generated identities. These avatars are then free to explore the world that San Francisco-based Linden Lab has synthetically created.

Real-world money can be exchanged for Linden, the accepted currency in the Second Life world. Linden can be used to purchase virtual land space to build on, different clothing for their avatar, or even adult-related content. As of 12 p.m. EST, nearly $520,000 had changed hands among 1.28 million users over the previous 24 hours.

Linden also can be exchanged back for U.S. dollars and other foreign currencies through SL's own LindeX currency exchange. Linden Lab offers economic data and market history on the Second Life Web site, enabling users to monitor changes in the exchange. Currently, $1 will get residents roughly 272 Linden.

Volume has been steadily climbing with the influx of new members. During October, users saw daily volume on the LindeX top 20 million Linden for the first time ever, which figures to roughly $73,000.

The LindeX would go on to reach the 20 million mark a total of 8 times over the course of the month. Volume has yet to fall below 20 million in November; at its peak, volume surpassed 27 million on Nov. 1.

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