The Ultimate Real Estate Bubble

Posted: June 18, 2014 in Commentary, Shroud of the Avatar

Portalarium is setting themselves up to cash in on the rush of a virtual real estate bubble that so far has enabled them to raise over $4.25 million dollars.

People are paying anywhere from $275 to $12,000 for pledges including virtual real estate in their game, Shroud of the Avatar. Some are even buying multiple pieces of real estate for speculation or other purposes.

Let me remind those of you that are continuing to feed this beast of a few simple facts.

Fact #1: We are ruining our own enjoyment of the game and the enjoyment of others by paying for advantages with real money.
Fact #2: The value you place in these goods is based on their supposed rarity and exclusivity, none of which are guaranteed or protected.
Fact #3: We don’t even have anything but a vague idea of what kind of game we’re going to get yet as the design is still up in the air.
Fact #4: This game is in no way guaranteed to become popular.

People who are purchasing pledges for virtual real estate from $275 all the way up to $12,000 are placing a great deal of trust in Portalarium, and I would contend that trust is misplaced. Portalarium has already displayed a tendency to only listen to their backers when it suits them. They never seem to address the root cause of the issues which result in outcry in their community, but have instead offered platitudes or additional pledge rewards and have even attempted to pacify their community with threats of bans. They have already taken several actions which have undermined the value of existing pledges, both on an absolute scale and a relative scale.

They hold a monopoly on the sale of these intangible goods of which they can create an infinite supply. The one thing you can be sure of is that as a business, their interest is to keep selling these “products” for as long as they possibly can. Do you really trust that your investment is safe? Do you think you will receive the value for the money you have spent?

If this game were to fail to attract players, which is a very real possibility, your value will be lost.

If Portalarium fails to place limits on their own supply creation (which is theoretically infinite), your value will be lost due to supply & demand imbalances.

Please be informed that they are modeling their scheme after The Oklahoma Land Rush of 1889. This is a pre-meditated plan as documented here:

Lord British and the Oklahoma Land Rush

[Starr] Long said that he had researched the land rushes of the old West because ‘it’s the perfect model’ for his design projections.

“Forsaken Virtues” is right.


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