World Stock Exchange
Encyclopedia
The World Stock Exchange (WSE) was a fictional securities exchange created Hope Capital Pty. Ltd. of Melbourne
, Australia
and managed by CEO, Luke Connell.
The game opened on 5 March 2007 and first appeared in the virtual world
of Second Life
. Transactions occurred outside of Second Life on the WSE website. The game initially used the Linden Dollar currency
from Second Life and in July 2007 integrated a new fictional currency
called the World Internet Currency (WIC, WICS, W$). In its first 25 days, the WSE generated $200,000 in trading volume. Players of the game were not legally protected as with real stock exchange, instead trading was governed by the Linden Labs terms of service and the listing rules created by Connell.
In July 2007, an avatar with inside information hacked the WSE computers and made off with 3.2 million LD (or about $12,000US). The 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 WSE's classification as a game since the virtual currency, Linden Dollars, were able to be exchanged for real money. Connell 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. Shania Stewart, who's 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.
The WSE halted trading on 9 November 2008, pending an announcement. According to the 30 November 2008 announcement, the WSE planned to delist any remaining Second Life
-based companies and would not reopen until late January 2009. In 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. The exchange never re-opened.
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and managed by CEO, Luke Connell.
The game opened on 5 March 2007 and first appeared in the virtual world
Virtual world
A virtual world is an online community that takes the form of a computer-based simulated environment through which users can interact with one another and use and create objects. The term has become largely synonymous with interactive 3D virtual environments, where the users take the form of...
of Second Life
Second Life
Second Life is an online virtual world developed by Linden Lab. It was launched on June 23, 2003. A number of free client programs, or Viewers, enable Second Life users, called Residents, to interact with each other through avatars...
. Transactions occurred outside of Second Life on the WSE website. The game initially used the Linden Dollar currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
from Second Life and in July 2007 integrated a new fictional currency
Fictional currency
A fictional currency is some form of defined or alluded currency in works of fiction. The names of such units of currency are sometimes based on extant or historic currencies while others, such as "Kalganids" in Asimov's Foundation series, may be wholly invented...
called the World Internet Currency (WIC, WICS, W$). In its first 25 days, the WSE generated $200,000 in trading volume. Players of the game were not legally protected as with real stock exchange, instead trading was governed by the Linden Labs terms of service and the listing rules created by Connell.
In July 2007, an avatar with inside information hacked the WSE computers and made off with 3.2 million LD (or about $12,000US). The 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 WSE's classification as a game since the virtual currency, Linden Dollars, were able to be exchanged for real money. Connell 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. Shania Stewart, who's 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.
The WSE halted trading on 9 November 2008, pending an announcement. According to the 30 November 2008 announcement, the WSE planned to delist any remaining Second Life
Second Life
Second Life is an online virtual world developed by Linden Lab. It was launched on June 23, 2003. A number of free client programs, or Viewers, enable Second Life users, called Residents, to interact with each other through avatars...
-based companies and would not reopen until late January 2009. In 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. The exchange never re-opened.