Will Gloebits be supported in Kitely Market?

Ask questions about your Kitely account or payment options
Post Reply
strannik zipper
Posts: 4
Joined: Tue Jun 24, 2014 10:54 pm
Has thanked: 1 time
Been thanked: 0

Will Gloebits be supported in Kitely Market?

Post by strannik zipper » Thu Jun 07, 2018 9:40 pm

So I have jumped on the bandwagon and switched from Podex to Gloebits on my grid. This is the first real working hypergrid currency, where I can pay tipjars or buy stuff in other grids. I also get Gloebits paid to me, some of which I would like to spend on Kitely market, but the cost (both in time and in fees) make this impractical. Is there any chance that Gloebits could be added as a currency to Kitely Market, besides the Kitely currency (useless to me) and PayPal? I would consider shopping and selling more on the market if so.

User avatar
Ilan Tochner
Posts: 4546
Joined: Sun Dec 23, 2012 8:44 am
Has thanked: 2210 times
Been thanked: 2397 times

Re: Will Gloebits be supported in Kitely Market?

Post by Ilan Tochner » Thu Jun 07, 2018 10:43 pm

Hi Starnnik,

The short answer is no, we will not be accepting Gloebits in Kitely Market.

To understand why, consider the math. Gloebits create a very high total transaction cost in the form of fees that are charged between the time a person buys them and the time the merchant sells them back for real money:

1) 2% transaction fee on each transaction made in Gloebits, even user-to-user.

2) 1 USD payout fee when selling Gloebits for USD.

3) 20% margin between how much a user buys Gloebits for (200 Gloebits per 1 USD) and how much the merchant gets when selling those Gloebits to turn them back to USD (250 Gloebits per 1 USD).

Here's an example:

Let's say you buy 50 USD worth of Gloebits. You'll get 10000 Gloebits in return. If you then used those 10000 Gloebits to pay a merchant then the merchant would only get 9800 Gloebits (200 Gloebits would be charged by Gloebits as the 2% transaction fee). If the merchant then wants to convert those Gloebits back to USD they'll get 38.20 USD sent to their PayPal account (9800 / 250 = 39.20 USD and then they'll be charged Gloebits' 1 USD payout fee). In other words, even when a merchant only chooses to pay out to real money after selling 50 USD worth of goods the merchant will only be sent 76.4 cents per dollar that was spent buying from them (a total of 23.6% in fees would have been paid to Gloebit).

This is already higher than Kitely's maximum charge of 20% on PayPal transactions, even without taking into consideration how much we would have needed to charge for accepting Gloebits as a payment option. Our current sales commission for anything not paid for in Kitely Credits is 20% of the USD value of what the buyer pays. Due to the 2% transaction fee and 20% margin that Gloebit charges this means we would need to charge a 25.51% sales commission on sales made using Gloebits for us to get 20% of what the buyer paid in USD.

This would leave the merchant in the previous example with just 56 cents per dollar that was spent buying from them in Gloebits, compared to 80 cents per dollar that Kitely Market gives them when they list their items for sale in USD. There is no reason merchants should accept such fees and we're not going to hurt Kitely Market merchants just because there are people who prefer paying with Gloebits (which they mostly acquire using PayPal) rather than paying directly using PayPal on Kitely Market.
These users thanked the author Ilan Tochner for the post (total 4):
Macphisto AngelusBrayla SanaChris NamasteDot Matrix
User avatar
Brayla Sana
Posts: 55
Joined: Wed Mar 27, 2013 7:09 pm
Has thanked: 15 times
Been thanked: 92 times

Re: Will Gloebits be supported in Kitely Market?

Post by Brayla Sana » Fri Jun 08, 2018 12:28 pm

Sell in USD. It's what I do. I also have a few items that sell for KC's as well - so I have a stash of KC's in my account for Kitely worlds.

While there is a part of me that would like Gloebits to be accepted in Kitely due to their convenience - there are also down-sides to having a traded currency inworld instead of a game currency. One benefit to having a "game currency" like KC instead of a traded currency like Gloebits is that you can have games of chance on your sim without worrying about banking or gambling regulations.

Check here https://www.kitely.com/market?wt=os&q=paypal for some inworld paypal options sold on the Kitely Market.
These users thanked the author Brayla Sana for the post (total 3):
Ilan TochnerMacphisto AngelusDot Matrix
Dadiella's for Fashion and Brayla Sana Gallery for Building!
User avatar
Chris Namaste
Posts: 110
Joined: Wed Jan 27, 2016 6:55 pm
Has thanked: 303 times
Been thanked: 103 times

Re: Will Gloebits be supported in Kitely Market?

Post by Chris Namaste » Fri Jun 08, 2018 6:31 pm

thx for this info,ilan,its sooo interesting to know!:)
yes, i do same as Brayla does (first phrase), lots of kitely citisens love to buy in kc's as well,and when i sell for kc's its always a smaller price then for usd export 'cos its export',
as many merchants still do.
after reading all this info, im sooo relieved kitely wont accept gloebits -cos if we, artists, merchants etc,- could choose,i wldnt sell in gloebits, never did & never (plan to) do :)

ps to starnik : aftera ll its always usd - eur, i donno why many pple love to pay in gloebits (its often unstable in value as well), isnt it the same to just buy what u like in that currency :)
These users thanked the author Chris Namaste for the post (total 4):
Ilan TochnerDot MatrixSelby EvansMacphisto Angelus
Chris Namaste (inworld i use notes & voice - i rarely chat nor im)
Chris CreationZ url kitely market : https://www.kitely.com/market?store=914 ... &sort=date
Post Reply