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Quick Take: The Virtual Future or Ponzi 2.0?

Is the incredibly popular online universe really just a Ponzi scheme?

By Seth Jayson – Jan 25, 2007 at 12:00AM EST
Could it be that the much-hyped Second Life is nothing more than a giant Ponzi scheme, predicated on cybersex and virtual gambling? This article makes a pretty interesting case that Second Life is a good old-fashioned Ponzi scheme, which suggests that corporations clamoring to look hip by entering the virtual world have no idea what they're getting involved in. The "Hey, look at us! We play in here, too!" crowd reportedly includes IBM (NYSE:IBM) Nike (NYSE:NKE), Sony (NYSE:SNE), Sun Microsystems (NASDAQ:SUNW), ABN Amro (NYSE:ABN) and others. Could the press, stumbling over itself to be the first to give us a glimpse of the new, new future, be missing the forest for the trees?

Naw, I'm sure they're all too smart for that.

But I do note that on the Second Life home page, there seems to be a lot of emphasis on the promise of building virtual fortunes. How much would you be willing to pay for an island in a world where creating more real estate is as easy as clicking a mouse?

Comments? Bring them here.

At the time of publication, Seth Jayson had no positions in any company mentioned here. View his stock holdings and Fool profile here. Fool rules are here.

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About the Author

Seth Jayson
Seth Jayson is an advisor on The Motley Fool’s Trends service, overseeing the AI and Spotters segments of the scorecard. Seth closely follows technology companies, particularly hyperscalers and their suppliers. He also stays up to date and recommends companies in homebuilding, specialty online, defense, aerospace, and other sectors. He has spent more than two decades researching, reporting on, and recommending stocks to Motley Fool members. A former Motley Fool member himself, Seth holds a B.A. from Carleton College and two master’s degrees from NYU and the University of Missouri in art history and journalism respectively.
TMFRizzChicken

Stocks Mentioned

International Business Machines Stock Quote
International Business Machines
NYSE: IBM
$253.47
(-2.08%)-$5.38
Sony Group Stock Quote
Sony Group
NYSE: SONY
$21.62
(+0.63%)+$0.14
Nike Stock Quote
Nike
NYSE: NKE
$56.53
(-0.84%)-$0.48

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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