Anshe Chung Becomes First Second Life Millionaire?

Business Week and others are reporting that Anshe Chung, a Second Life character created by Ailin Graef (a teacher born and raised in China - now residing in Germany) has grown an initial $9.95 “investment” into virtual property worth and estimated $1M U.S. based on Linden’s most recent Economic Statistics.

She did this by buying large parcels of Second Life virtual real estate, subdividing, developing it (using Photoshop and other tools to add rivers, forests, mountains etc.) and selling off smaller plots to other Second Life residents.

Second Life’s in-game currency, Linden Dollars, can be converted into U.S. dollars.

Sources: Business Week | ValleyWag.com | Gamasutra | Sydney Morning Herald | GigaOM | TheStreet.com | Red Herring | CNet Blogs | GameSpot | *CNN Money |Ailin Graef Press Release

• PC World: Virtual Gold Could Draw Real Taxes (January 29, 2007)
• GameSpot Article: IRS Taxation of Game Assets Inevitable (December 4, 2006)
• Australian Tax Office Will Tax Income from Virtual Transactions (October 31, 2006)
• Representative Jim Saxton Believes Taxing Virtual Economies Would be a Mistake (October 17, 2006)
• Is an Eve Online Ponzi Scam an Actionable Fraud or Taxable by IRS? (September 1, 2006)
• Dragon Slayers or Tax Evaders? (January 7, 2006)

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