Lessons on Liquidity

A key aspect of the current global financial crisis is a lack of liquidity - assets' ability to be easily converted through buying or selling without causing a significant movement in the price and with minimum loss of value.  In other words, banks, businesses, and people don't have enough (or access to enough) cash to keep economic engines moving.

Liquidity is also a challenge in markets like ExtZy, and we're learning some lessons as we go about getting the game started.  In order to keep volume moving (shares trading back and forth between investors/players), everyone has to have a minimum amount of points to spend on new stocks they think will be growing in value or buy shares offered by other players.  Otherwise, trading grinds to a halt (and the fun stops!) We're aware that we've got a liquidity problem at the moment on ExtZy, and wanted to give you an update on some of the things we're working on to solve it...

Liquidity in ExtZy can currently come from three sources: the initial credit line for new players, profits from dividends, and successful sale of shares.We're currently reviewing the 100-point credit limit and running numbers on increasing it, having put in place mechanics to track and verify all trades, and ensure market-based pricing of offers. 

We're also reviewing the controls on free-float, the mechanism that requires more than one person to own shares in a stock before dividends are paid out on it.  At the moment, no one player can hold more than 20% of a stock's shares, however that is currently a difficult hurdle to jump, so we're looking at options to change it to a diversity based on a proportion of active players in the game.

Successfully selling shares is mostly up to you, but once we get the basic liquidity formulas adjusted properly, we'll be opening up the game to more players, which will increase the number of trades in the game, investments in the market, and diversity in stock holdings (releasing dividends.)  We're also developing opportunities for players to earn bonus points through recruiting friends to join, adding new web-pages (stocks) of your own, and completing your profile and optional additional questionnaires that will give us more of an idea of your interests in the web, markets, games, and business.

Let us know what you think would work best, where the game is unclear or buggy, or other ideas for increasing the play-ability and fun!  Click on "Comment" below to start a discussion or make a suggestion...

 


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