This happened probably to all of Earth2.io players. You logged into your account and suddenly your Property value increased by thousands or millions of percent. Most of the players are happy at first because it seems like another Bitcoin but the reality is quite different. I will explain what happened and what you shouldn’t do.
Massive value increase
When property value increases suddenly by thousands or millions of percent you should know that this is only temporary. Sometimes it will stay for minutes and sometimes for hours. This isn’t caused by natural market behavior but it is caused by players and artificial inflation of the price. This ,,fraud” is called Pump and Dump.
What is Pump and Dump
Pump and Dump is term used for stock markets. It is considered fraud and in unregulated market like Earth2.io it can happen. How does it work? This practice needs two parties. Let’s call them Mike and Bob. Mike owns numerous tiles of UK where current market value and new land is 5 USD per tile. To make some money he ask Bob to buy his property for 5000 USD per tile. This means that Market value increases to 5000 USD per tile. Now Mike can put his properties on the market for let’s say 100 USD per tile. This means that in the Marketplace his UK properties will be with with 98% discount and some people will buy it. Mike will sell his properties with 1000% revenue and he only had to pay 5% commission to developers because property bought his friend Bob.
Check real prices before purchase
When you see some properties on the Marketplace with more than 50% discount you should check more information about prices. The best way is to click on the property and compare New Land Value (price of the tile when you purchase it from the grid) and Current Market Value (market value which might be pumped). When there is too big difference you shouldn’t buy the property. Unless you want it so bad.
Market will stabilize
Sometimes it takes minutes, sometimes hours or maybe days but eventually market will stabilize and the price will be same or similar to New Land Value. You can eventually try to make some money with your properties when they’re pumped too 🙂