Linden Lab Pulls the Rug out from Under XStreetSL L$ Exchange

Let’s start this post with a rule that Linden Lab (the makers of Second Life) have on their own site.

You acknowledge that Linden dollars are not real currency or any type of financial instrument and are not redeemable for any sum of money from Linden Lab at any time.

When you play Second Life you can buy and sell things in the game. You can do this with Linden Dollars. The way to get Linden Dollars is to buy them with your real money from their website unless you can get someone to give you some. There is a “LINDEX” where you can buy and even sell your Linden Dollars. It’s similar to a stock exchange. The value of the Linden Dollar goes up and down and you can buy or sell at different rates and hope to buy or sell at a good rate.

When you buy you are turning your real U.S. Dollars into “pretend” Linden Dollars. When you sell you are turning your “pretend” Linden Dollars into real U.S. Dollars. So now you have real U.S. Dollars sitting in your account. What can you do with it? You can “cash out” or “Process Credit”. They send your money to your PayPal account.

Linden Lab had another way to “cash out” until December 15, 2010. It was the XStreelSL Exchnage.  XStreetSL has been closed though since they opened the new Second Life Marketplace. The Exchange had a very fast cashout to PayPal. You could have your real U.S. Dollars instantly! After you cashed out you could go to your PayPal account and see you money there! But the Lindex doesn’t give you your U.S. Dollars so fast. You have to wait up to 5 business days (and sometimes longer). So now the XStreetSL Exchange is closed with very short notice to residents and they are upset!

But before we look at what they have to say and how mad they are let’s look at that rule again that Linden Lab (the makers of Second Life) have on their website…

You acknowledge that Linden dollars are not real currency or any type of financial instrument and are not redeemable for any sum of money from Linden Lab at any time.

Here it is again from a snapshot. it says it TWICE.

But nobody seems to be following any rules anyway! Linden Lab isn’t even following their OWN RULES! It says Linden Dollars are not redeemable for real currency but… PEOPLE ARE TRADING THEIR LINDEN DOLLARS FOR REAL U.S. DOLLARS AND GETTING PAYPAL PAYMENTS!

After the XStreetSL cashout pages were shut off residents started replying to this blog post about the closing. Here is what some of them had to say…

If you’re going to do this, I’m going to miss the instant cashouts. Please add a LindeX option that allows those of us who exchange far over US$5,000 per month, to trade quicker than a week. Not being able to pay my bills or rent because of a 7 day transaction delay is a nightmare. Plus, the 5k limitation is a huge restriction on us heavy business users.

-Zachh Barkley

This is going to cripple me because of the instant cash out being taken away.  When I needed money for medical, grocery or other life expenses, Xstreet was the only way I managed my bills on time.  I can’t predict how much L$ I’ll have at any given time and thusly I can’t ‘schedule’ around week-long transfer times, Lindens.

Please do something about this.  I’d be happy to use the lindex if only it didn’t take me a week to get to paypal and then to my bank account.  PLEASE!

-Tinintri Mistral

Agreed we need LindenX to be Instant or at least next day at the very latest, Many of us have this as a RL income and have a schedule that has been set based on the abilty to cash out instantly. PLEASE resolve this issue that is sure to be one for many of users all over sl.

-CarpeDiem Turbo

I have to make another comment. I just dont understand what the point of taken this away is at this time. It is in place, it is instant, and as you can tell this will effect SEVERAL merchants many who prob will not bother to comment cause it really never does any good, cause you will do as you want and to heck with the people that PAY YOUR SALARY. This will cripple many people having to wait. Luckly I have a PayPal card so as soon as it hits paypal I am good, but still having to wait 3-5 or more days for MY MONEY when I have my bills set on a schedule like many others do is just plain stupid to toss out the instant cashouts when its in place and working.

Why not keep this exchange open untill the lindenX is ready to handle the instant cash outs? I can understand if it takes a few cashouts on lindenX to become instant just like we all had to with xstreet Xchange 2-3 or so cashouts before it was instant. When will LindenX be instant or at the very most 24 hour time frames to get money???????

-CarpeDiem Turbo

this is NOT GOOD for me .. i had money in USD that I needed for my kids Birthday .. and even thought it was not much i was counting on it .. now I have to wait 2 days to get a credit back to my SL account and then 4 more days to process it if Im lucky .. well there goes my sons birthday this weekend … I WISH we could have been warned .. I didnt even know this was going to happen today if I did I would have cashed out yesterday.

-BellaDonna Lemondrop

At it again, well I’ve been here since 2004, doing business since 2004, cashing out over $5000L a day since 2004. I’ve been here through ALL ths absolute crap and bs you people have droppped on us, but this will probably be it!

So now I have to wait 7 days, yeah right I’ve had my money tied up for up to TWO WEEKS though Linden’s exchange crap, (I’ve had to pay extra fees through other bills because I have money and I’m waiting to get MY MONEY, almost got me evicted one month because of it as well, thanks) so now I HAVE NO CHOICE??

Some of us NEED to utilize the instant cash out process and now you are seriously jeopordizing peoples REAL LIVES!

How about we hold up everyone at Linden Labs paychecks for 7-10 days maybe 2 weeks?

Well Linden Labs, you’ve done everything possible over the years to get rid of us old timers that BUILT THIS WORLD FOR YOU, (get some LL freebies and see how crappy they are compared to most of the everyday people’s creations in SL).

No problem, would like to say it’s been fun, but it hasn’t, it’s been a nightmare over the years cause LL just does what ever they want, whenever, and with little regard to who it’s effecting. (except like CNN and NBC and all the big “wood” contracts they could wrap their lips around! You should see how the rules “bend” for these people!)

Time for the next generation to have at it, you win Lindens, Dog is out, 5ifth Order is out, and not like you guys would care, you just keep letting all the artists here get ripped and raped by your system and you just keep up the silly games and sooner or later there will be another one you and people will get tired enough.

-Johnny Dusk

All these people have become dependent on Linden Labs for income. A income that Linden Lab says doesn’t even exist! They don’t give money to people for their Linden Dollars so what are these people so upset about?

Maybe some of these people should stop being so dependent on a service that doesn’t even acknowledge that they are paying people real Linden Dollars when they are. Linden Labs don’t have any obligation to keep paying anyone anything! They can close the Lindex without any notice and delete everyone’s U.S. Dollar transaction history and there’s not much any of these people can do about it except for more whining and complaining.

It is sad that these people who have real lives and real bills and real families spend so much time online in a game and create all this content to make the game what it is and get cut off like that. But what can they expect? They put their faith in a company that put in their terms of service that their in-game money is not redeemable for real money when it is. Maybe residents should look more close at those terms of service to see what else Linden Labs says they don’t do that they are doing.


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