Buddy Media, the company that developed widget Acebucks which allows Facebook users to hand out fake money as part of a "loyalty program," has received a $6.5 million second round of funding, bringing the total invested to $8 million. [PaidContent]

According to Mike Lazerow, the founder of Buddy Media, creator of Facebook application AceBucks, his company's virtual-currency service is just misunderstood. The "boo birds" just don't get it. Lazerow & Co. aren't competing with PayPal, Facebook's own rumored micropayment system, Beenz, or Flooz. Acebucks is not a payment processor and its not an online currency that translates into real goods or real money. So what the hell is it? It's a "loyalty program." In other words, it's a frequent-flier program — without the free plane trips, though. Remind us why Peter Thiel, Mark Pincus, Howard Lindzon, and other net bigwigs invested $1.5 million in this company?