(WSE) was a virtualstock exchangecreated Hope Capital Pty. Ltd. ofMelbourneAustraliaand managed by CEO, Luke Connell.
The game opened on 5 March 2007 and first appeared in thevirtual worldofSecond Life.1Transactions occurred outside of Second Life on the WSE website.2The game initially used thefrom Second Life and in July 2007 integrated a newvirtual currencycalled the World Internet Currency (WIC, WICS, W$). The WIC currency, similar to theLinden Dollar, could be converted to/fromUSD. In its first 25 days, the WSE generated $200,000 in trading volume.3Players of the game were not legally protected as with a real stock exchange, instead trading was governed by the Linden Labs terms of service and the listing rules created by Connell.3
In July 2007, an avatar with inside information hacked the WSE computers and made off with 3.2 million LD (or about $12,000US).4The WSE shut down temporarily to investigate and perform system upgrades. As a result, WSE software development and upgrades were moved in house and positions were no longer available to anonymous Second Life avatars. The incident sparked debate over the WSEs classification as a game since the virtual currency, Linden Dollars, were able to be exchanged for real money.4Connell maintained that no crime had occurred since all transactions and companies involved in the game were fictional. He blamed the backlash against the WSE on a few disenchanted companies whose initial stock offerings failed to perform to their expectations.5Shania Stewart, whose avatar first reported the theft had her company delisted from the WSE shortly thereafter. She later told BusinessWeek that the delisting occurred because she believed the exchange had no intention of disclosing what happened. Linden Labs declined to comment on the incident.6
The WSE halted trading on 9 November 2008, pending an announcement.7According to the 30 November 2008 announcement, the WSE planned to delist any remainingSecond Life-based companies and would not reopen until late January 2009.8In August 2009, WSE released a new announcement indicating that delays in the development process prevented meeting the earlier launch dates and the game was tentatively set to re-launch on 1 September 2009.9The exchange never re-opened.
While the site still claims that a new version of the exchange will be coming soon, the main site still shows the same April 24, 2010 announcement as of September 2013.10Some of theSecond Lifeinvestors who still held a balance in the WSE at the time it ceased operations were unable to withdraw theirLinden Dollaror WICS balances.
Virtual Stock Exchange Opens in Second Life. Wall Street and Technology. 16 March 2007
Betting On Second Life Stock Exchanges. Tech Crunch. 20 August 2007
Naone, Erica (8 August 2007).Money Trouble in Second Life.
Hutcheon, Stephen (10 August 2007).Jitters in Second Life as bank shuts doors.
Di Meglio, Francesca (10 August 2007).Virtual Exchanges Get Real.
IMPORTANT – MARKET TRADING HALT. World Stock Exchange. Retrieved 2008-10-10.
THE 2008 ADDRESS TO THE MARKET. World Stock Exchange. Retrieved 2008-12-09.
Connell, Luke (24 April 2010).Dear Market Participants.
All Wikipedia articles written in Australian English
This page was last edited on 8 December 2019, at 20:09