Virtual economy and the wild west at Facebook

I just read news that a virtual currency company serving Facebook just got $1.5M in backing. The reason this was a head-turner was that one of the investors was Peter Thiel. The blurb:

“Acebucks, one of the primary virtual currencies on Facebook has just raised $1.5 million from a powerhouse team of investors. Aryeh Goldsmith, the developer of Acebucks, was acquired by Michael Lazerow to form Buddy Media. Buddy Media investors include Howard Lindzon, Peter Thiel, Mark Pincus and James Altucher.”

and article are here.

This contrasts to another formerly small company with ties to Peter Thiel, PayPal, which announced it’s own plans to dominate Facebook back in July (story here).

Is this a “sign” that Peter Thiel has found the next big thing? is it an indicator that PayPal has lost it’s edge? or could it be a vote and strategic move for Thiel to initiate a future acquisition? Whatever the case, this recent funding brought back memories of how ebay bought a PayPal competitor, then ended up buying PayPal when the PayPal still dominated ebay sales transactions.

Acebucks appears to have the edge here – as it has the feel of being underground and unauthorized. Heck, if you look at the app you’ll even see illicit mp3 trading being offered for Acebucks. That blatant “stick it to the man” attitude may provide clues to Facebook marketing on one hand while starting a cat-and-mouse DMCA game in the near future. PayPal, on the other hand, has the feel of responsible adults trying to cater to a younger audience, distinctly useful, but uncool… It’s the wild west again, and I think I’ll pull up a first row seat.