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Vise

Molten Core Raider
152
46
Well, Krono is kind of like a deposit for a hotel or anything else. It is a liability on the books till it is actually realized.

But the big difference, is that most deposits can be canceled or forfeit for a lesser amount of the total, whereas Krono they take the full amount upfront and its non-refundable. The money for krono should probably go on the books at the time of purchase, not redemption.

Its more like a gift card which also do not count till used and can not be refunded
 
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Zaide

TLP Idealist
3,904
4,751
I've had a dev (maybe Prathun??) say that it doesn't count even when they ban the account holding the krono. I always thought it was really strange, if the account is banned then the krono will never be used, so there is just mystery money on the books? This is especially odd since you'll occasionally see bans like TheKing who had upwards of ten thousand krono when his accounts got hit.

I guess there is always a chance for them to reverse a ban in the future so they need to just let the krono rot on those accounts forever.
 
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ZyyzYzzy

RIP USA
<Banned>
25,295
48,789
From an accounting and tax prespective, I have to assume they count a krono as soon as it it bought. There is really no other way to do so that is logical
 
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Secrets

ResetEra Staff Member
1,900
1,914
I've had a dev (maybe Prathun??) say that it doesn't count even when they ban the account holding the krono. I always thought it was really strange, if the account is banned then the krono will never be used, so there is just mystery money on the books? This is especially odd since you'll occasionally see bans like TheKing who had upwards of ten thousand krono when his accounts got hit.

I guess there is always a chance for them to reverse a ban in the future so they need to just let the krono rot on those accounts forever.
Maybe it's tax related? IE; if they don't have to report the Krono as revenue, they don't have to pay taxes on it until the product is consumed. And they DO collect the taxes in addition to the revenue. So it's off the records but is technically illegal in tax code because the product is given immediately.

Would also explain why EQ/EQ2 are profitable compared to LOTRO and other games.

One way to find out, I guess.

How Do You Report Suspected Tax Fraud Activity? | Internal Revenue Service

Anyone know when they started collecting sales tax? Earliest I see is 1st April 2019 in my emails.
 
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Xevy

Log Wizard
8,886
4,105
What if DBG was buying Krono off the Krono farmers at $10 dollars and putting it back into the system to then resell for full price?

(they are)
 
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Los_Necros

Trakanon Raider
337
150
Don't krono get produced out of thin air, for free? I assumed the krono inventory was infinite. Doesnt matter how much of a difference in price is, you're losing all $ 10 if your inventory goes from infinite to infinite + 1.

Unless I am missing something there.
 
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Xevy

Log Wizard
8,886
4,105
The less the big bois have, the more people have to go to the real store to buy it at a premium. And if they take it away from the krono kings people have no choice but to go to the store. They don't need to make an infinite supply as it's actually consumed unlike real money. They want less floating around or people won't have to go to the store to buy it.

They sell it to Housewife A for $17
Who then gives it to Tubbins who sells it for $10 back to DBG under some guise
Sell the same Krono again for $17 and hope it's consumed for time, which most of the krono lords don't do much of outside of paying their box accounts

You've just made 24 dollars off your Krono instead of $17 ensuring smaller but steady profit until it's consumed from the system.

You don't need to print out infinity if the demand isn't that high. They need to sell it to people who will consume it. Most people who hoard it don't consume much of it.
 
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Los_Necros

Trakanon Raider
337
150
The people who spend $ 17 on krono are completely different than the ones buying off 3rd party websites.

Not a chance that any person who uses RG/ectunnel to buy krono, would ever just randomly decide to go buy krono from daybreak for full price.

There is also too many krono in the market for that to make any sense for them. If 1 single farmer on a TLP can hold a 100s of krono without it being that difficult or noticeable to the krono market, just imagine how many krono are across all servers. We're getting into 10s of thousands, maybe 100,000s?
 

Xevy

Log Wizard
8,886
4,105
Not a chance that any person who uses RG/ectunnel to buy krono, would ever just randomly decide to go buy krono from daybreak for full price.
That's my point. But if they buy it off them, maybe even say at a bulk discount price with protection from being banned it's a pretty sweet deal. They remove krono from the system FROM the people who are obviously selling it for $10 each cutting into their official store everyone wins. They remove it from the RMTers back into their ownership and there isn't, afaik, individual krono Unique ID so they just take it back and hand it out at $17.

They're not selling it to Tubbins at $17, they're selling it to the most casual whale gamers at $17. There's way more of them than you can imagine. We have to talk people in our guild out of using the store because they can just get krono for $10 from guildmates instead.
 
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Regime

LOADING, PLEASE WAIT...
<Aristocrat╭ರ_•́>
16,863
40,082
Speaking of Krono

who is selling some?

just kidding jk GIF


I need to do some Twinking on BigDog
 
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Los_Necros

Trakanon Raider
337
150
It's not possible for them to "buy up" all the krono though. That's the issue I am running into here. There has to be over 100k krono just roaming around. You going to tell me this company is BUYING thousands of krono off the black market? Do you really think this is true?

Or maybe this is like a long time ago rumor? I cannot imagine this occurring anytime recently, at least. I don't know what happened 5+ years ago but I know ever since
I've been around, the amount of krono in the market is just unfathomable. I cannot see it being realistic to buy up all the krono available to force people to buy theirs at $ 17. In your scenario, the only PROFIT they make is when someone who was going to buy krono from some dude for $ 10, is unable to find krono and is forced to buy from daybreak. How often does that REALLY happen nowadays? I've never heard of someone not being able to get krono for $ 10 if they knew just a couple people in that market.

All those people who were already going to pay $ 17, whether you spent a million dollars buying up $ 10 krono or not. So, you aren't making any extra money from them. You are only making "$7" when you're 100% forcing someone to buy from daybreak instead of online. Which, I just do not see happening enough.
 
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Xevy

Log Wizard
8,886
4,105
If your house is flooding and you've got limited tools and resources you plug up the gaping huge fucking holes in the wall and leave the cracks to trickle in. It's like drug dealers. Who the fuck cares about the low level corner people selling a few ounces of weed a week? You want to stop the kingpins moving tons of the stuff. And if you can't stop them you try to control them. And if they have enough Krono generation (which people like Tubbins were making thousands per month) that's a lot of fucking OG Kush you want your hands on.

The less major suppliers there are the more people have to go to small time people who can't necessarily pump out krono. That pool slowly depletes (it won't deplete in a year or two years) but slowly gets depleted and people have to TRUST these people rather than the WalMart krono lords who have a good reputation because that's what they do. Eventually some, not all, not most, but SOME people just say fuck it and keep their monthly $15 a month. That's $5 that DBG wasn't getting in the first place.

It's a long term thing. They're not buying Kronolords to instantly delete all krono and have everyone sucking on the stores teat. It's a process that's been going on for a while and is most likely working. Original kroners cost 15-17 dollars, get thrown at Tubbins and co in HUGE amounts, then are resold at a discount back to DBG or some 3rd party, who then just dumps them back to be re-used by DBG. As long as there's any decent amount of DBG store krono being sold it's worth it for them to try and re-catch these krono before they're burned. It's just free money if the demand is there.
 
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Lumi

Vyemm Raider
4,310
3,038
It's not possible for them to "buy up" all the krono though. That's the issue I am running into here. There has to be over 100k krono just roaming around. You going to tell me this company is BUYING thousands of krono off the black market? Do you really think this is true?

Or maybe this is like a long time ago rumor? I cannot imagine this occurring anytime recently, at least. I don't know what happened 5+ years ago but I know ever since
I've been around, the amount of krono in the market is just unfathomable. I cannot see it being realistic to buy up all the krono available to force people to buy theirs at $ 17. In your scenario, the only PROFIT they make is when someone who was going to buy krono from some dude for $ 10, is unable to find krono and is forced to buy from daybreak. How often does that REALLY happen nowadays? I've never heard of someone not being able to get krono for $ 10 if they knew just a couple people in that market.

All those people who were already going to pay $ 17, whether you spent a million dollars buying up $ 10 krono or not. So, you aren't making any extra money from them. You are only making "$7" when you're 100% forcing someone to buy from daybreak instead of online. Which, I just do not see happening enough.

Ya, the whole dbg buying blackmarket krono makes zero fucking sense whatsoever. If they were buying the shit out of ectunnel krono then the price of said krono would go up as demand exceeds the supply. Yet what we see is the price of krono remaining extremely stable almost always. The only time I see it go up any significant amount is around the releases of TLP's. If they're doing anything involving the black market it's selling bulk krono's to other redistributors.
 
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Prodigal

Shitlord, Offender of the Universe
<Bronze Donator>
1,413
1,761
Hell DBG could be buying Krono in the Commonlands tunnel with plat they are just “printing”... not that I think they are, but hell would really be double dipping then.