Ginko Financial – beleaguered virtual bank or collapsed ponzi scheme?

Paul Raven @ 06-08-2007

Penny coinsMuch like the early incarnations of the web itself, there are a few tried and tested ways of making money in Second Life: porn is one, of course, and another is financial confidence trickery. The jury is still out over whether Ginko Financial – a Second Life banking scheme that offered 60% (yes, sixty) interest on deposits – fits the latter category; what is certain is that, after a sudden rush of withdrawal requests, Ginko don’t have the liquid assets to give the money back … and they’re none too forthcoming about what exactly they’ve done with it all, either. Common consensus seems to label the whole thing as one huge ponzi scheme, but only time will tell … probably very little time, in fact.

There are other ways of making money in the metaverse, though, with new ones appearing or rising to prominence all the time. Maybe virtual property is a smart business investment for the near future. [Image by Tanya Ryno]