I think describing a farmer would be something along the lines of this.
Think of Laalon, last night I saw him spamming wts this or that. He's technically a farmer, but he's also a legit person and not disrupting for anyone else.
Now think of back in T7.
There was a guy that 6boxed in SoS all the time, would train people, noone could get updates, etc. All he did was farm.
Then there was The Crew. 12-24 boxing all contested that they could get their hands on. Locking down in a sense and doing whatever they could to stop others from getting a pull on any mob.
Of course you also have the level 1 speed hackers getting shinies, the obvious bots in DoF areas, the people who farm no lockout instances like in Everfrost, etc etc.
So you've basically got two types of farmers. There's me, you, and most people who farm legitimately to make money for our toons and maybe a bit to sell, and then you've got the people who do nothing on this game but farm whatever to sell and will go to any lengths to make plat such as botting, hacking, and training anyone who gets in their way.
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It seems to me that normal players are the ones who use the exchange, and farmers use their own sales mechanisms, and livegamer will do absolutely nothing to prevent farming.
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Something to consider is that farmers also use the exchange, and as I pointed out above, not every 'bad' farmer is an 'asian botter.'
I could log on right now and have an intelligent english conversation with people/guilds that I know are 'bad' farmers who go to any length to make plat and sell only on the exchange.
But here is what probably will happen if they do open up LG. A few botters that no one knows about or ever sees will get banned from their service, a bunch of regular people('good' farmers) will get banned from their service, and most of the more blatant 'bad' farmers will still be there, using LG and whatever other sites to sell.
Anyway, I think a good summary would be, farmers use both SE and other sites, and LG wont do anything but piss off the legit players.