Posted by: Dirk | August 13, 2007

Second Life, First Bank Run

The Bloggers from Virtually Blind cover this story:

One of Second Life’s high-interest, self-styled ‘banks,’ Ginko Financial, suspended withdrawals this morning. Ginko head ‘Nicholas Portocarrero’ (who has not previously made his real identity public, and declined to do so now) said Ginko clients are unable to withdraw funds because Ginko’s ‘L$ reserve has been depleted.’ He continued, ‘we are working to replenish it, but when we add it people drain it almost immediately. It’s a bank run in essense.’

It has nothing to do with the recent financial crisis, however. That is covered by Roubini, among others.

UPDATE 17/08/2007: The Economist reports.

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