by Jessica Holyoke on 25/02/08 at 12:38 am
Roleplaying CEO’s pretend stock market still down after 51 days
by Jessica Holyoke
LukeConnell Vandeverre of Hope Capital Ltd, made an announcement via video link outside of Second Life on Sunday about the status of the World Stock Exchange. (WSE). The WSE went dark fifty one days ago with an announcement that they would be down for a month.
In his opening remarks, Vandeverre reminded market watchers that the WSE is the first Internet based stock market/bank and role playing game. Vandeverre also reminded people about the history of the WSE, and how back in December of 2006, he saw a need for a virtual economy to have a virtual stock exchange. After the virtual financial history lesson, the topic turned to what is happening with the WSE in relation to Second Life moving forward.
While both the Linden dollar and the World Internet Currency are both fictional currency and game tokens, only the World Internet Currency was going to be used on the WSE from the time the stock exchange becomes operational again in mid to late March. The reason given was that with the banking ban, which is formally known as a ban on paying interest, the WSE foresaw the Lab making many decisions not in the WSE’s interest, including possibly doing away with the Linden dollar entirely.
To counter potential Linden Lab concerns about their role playing game, the WSE decided to transfer all stock holder’s balances from Lindens to WIC’s. Previously, the exchange rate was 1 US dollar equaled 1 WIC. With WSE 4.0, 265 WIC’s equals 1 US dollar. All previous WIC balances have been adjusted to reflect this new exchange rate. The WIC can be bought and sold on the WIC currency exchange for US dollars, Australian dollars and Euros via PayPal, Paymate and in the future Western Union. In addition, prepaid credit cards will be usable by those under the age of 18 to take part in the role playing game that is the WSE.
Vanderverre took the time to remind stock holders that CEO’s of companies on the WSE are not really CEO’s, but also role playing participants who are simply learning the stock exchange game themselves.
The reason why the new roll out is taking so long is not only due to using Ruby on Rails as their development language, but also that the WSE cannot afford their own full time developer. So within five days of the developer being finished, testing will commence and trading will resume. Previous versions of WSE have been afflicted with bugs due to unrealistic timelines and hurried expectations.
Many times throughout the announcement, Vanderverre reminded users that both the Linden dollar and the WIC are fictional game tokens that represent a limited license right that users buy and sell the right to, not the underlying Linden dollar or WIC themselves.
While selling off is predicting, Vanderverre reminded stock holders that there would be buyers who would be willing to make a profit off of buying low and then later selling high, although this is not an investment, but rather a role playing game.
With the technology in place, Vanderverre sees the WSE providing 24 hour/7 days a week trading capability and potentially handling real stocks and securities. [will WSE still be fictional at that point? - or is pretending it will be real someday part of the roleplay? - Editrix]
Additional features for WSE 4.0 include the ability to make buy and sell limit orders and not solely making market orders.