Entrecard Starts Selling Credits!  

Make a note of the the date, June 3rd, 2008, as it will be THE day that makes or breaks Entrecard as a viable business. The much talked about and long awaited Entrecard Credit Exchange was partially implemented on June 3rd, 2008 and it is now possible to buy Entrecard Credits (ECs) directly from Entrecard. Coming soon will be the full implementation of the Credit Exchange where individual Entrecarders can sell their own ECs anonymously to other Entrecarders, which is even a bigger and more important development. But for the time being, let's congratulate Entrecard for their boldness and wish them great success in their attempt to create a viable web currency with real dollar value.

To be sure, Entrecard isn't going to get rich from the spread they are making on the sale of Entrecard Credits. Currently they are buying the ECs they are offering for sale from trusted Entrecarders at $7.50 per 1000 and they have Paypal fees to account for when they sell them at $9.50 per 1000. The small profit they will make will help pay for servers and other necessary expenses, but isn't going to be what makes Entrecard a financial winner. No, the reason that this is a big move for Entrecard is that it provides a reason to stay in the Entrecard community for years instead of just a few months, and that's what will help build Entrecard into a viable web property, ripe for the picking by cash-laden Internet biggies.

The mere fact that Entrecard could sell approximately 40000 ECs at $9.50 per 1000 shows that a captive market are more important that good market information. The current price of ECs via 3rd party vendors is around $3 per 1000, although that price should rise and needs to rise if the Credit Exchange is going to work. The big advantage Entrecard has isn't the "trust" or "convenience" they are touting, but instead is the ability to advertise on each member's dashboard. The EntreBank and other 3rd party EC vendors have been selling ECs since January and most--if not all-- of the transactions have been completed quickly and without a hitch, using Paypal just as Entrecard does. However, I believe the point will soon be moot as once the Credit Exchange is fully functional there will be little need for 3rd party vendors and Entrecard will likely ban the practice so as to control all the sales of Entrecard Credits and reduce the likelihood that someone will abuse the system by creating splogs specifically to farm and sell ECs.

So, the first shoe has dropped and hopefully we won't have to wait another 3 months for the other one to hit the floor heralding the arrival of the Entrecard Credit Exchange. What a great day to be an Entrecarder!

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1 comments: to “ Entrecard Starts Selling Credits!

  • Anonymous
    July 27, 2008 at 10:31 PM  

    It will get interesting when the IRS steps in and assesses the Entrecard Virtual Economy.

    A member can earn credits from dropping efforts and then spend those credits on goods or services, including advertising, all pre-tax. The IRS audit will probably go retroactive and tax the users back a few years, and Entrecard will be required by law to disclose the users that earned credits.

    A more appropriate name is probably Entrecard Underground Economy, which coud even become a good source for money laundering?