WSE - Current Status

Lets assume that these new markets and platforms will appear (and probably, at least at some stage, they will). He doesn't present any strategy at all for integrating them into his game. He says nothing about the mechanics of this crucial side of the equation. There isn't even a hint of a plan.

So, how is WSE going to expand beyond SL companies, if it is at all? We don't know. We don't know if he even knows. He doesn't address it.

Well that's the difference between coming up with an idea and making it happen isn't it. Overall the idea might work, but judging by this guys very poor videocast, I doubt he does personally.(He seemed to be really proud of his tie though) I guess my thoughts are based more on the actual theory of the thing and not really this person in particular.

Yup, I got that. Thank you for a good discussion

Isn't the value of the L$ determined by the market? ie what buyers are willing to pay?

Not entirely. LL uses the sale of L$ to keep it within a very small margin of fluctuation.

I understand money far more than I comprehend virtual worlds and computer software, so some good points made here.

So, I have a question.

(I presume cautiously that some people might trust each other in asking this question)

1000 gold (World of Warcraft) is worth about £20 sterling to buy, or say $40 US or maybe $L10, 800 Linden dollars

Would people here who play WoW exchange $L10, 800 for 1,000 gold? (Exchange rates approx) does vary from realm to realm.

I think that both gold and Lindens have "fungible" value, do folk think WIC's share that attribute

If it wasn't against the EULA, which it is, I'd definitely exchange L$ for ISK in Eve. That fungible value though, comes from the value of the game to me. More ISK means more ships, which means more pew pew, and pretty explosions.

My question is, will the WSE "game" be compelling enough to create that value?

Ah.

Perfect summary of the issue!

Fade, I agree, his growth projections are both overly optimistic and completely unsupported.

Also, let's not forget the WSE is still closed for business. Oh, but it will be reopening in late March says the guy with the sweet WSE tie. Maybe that's where all the money went...

Well that's really the debate I guess. With this guys reputation probably not. But what if say Anche Chung started a market like this, would she be better received? I guess people are shooting the idea down because of who is involved, which is a very reasonable reaction. I would guess there are people who wouldn't mind investing in virtual worlds without actually being involved in them. The IPOs benefit for their target platform and the investors get a way to invest in multiple platforms. The currency would be traded as well, creating a value for the market's own currency. This all made somewhat legit because of the precedent SL set with their own rules. Each platform could of course just ban investing in said market. In reality there are probably only a couple other platforms that could be on this market as of today, but it could all change eventually. It's really about trust in the IPO as well. Whose to say they just won't get up and run.

Now the questions for me is if businesses in SL can be listed as an IPO, gain income from being listed, use that to invest back in their own SL companies and then take out the gains in $. Does that open a similar market to websites that have nothing to do with virtual worlds? What exactly is the difference? So a fake "game" is legit for people to make money, but a fake stock market wouldn't be? I think a lot of small websites would love to have an IPO on a fake market that can actually bring you investment cash, which could then translate into income from your website.

Didn't Anshe try something like this? I recall that she did, except it wasn't a stock exchange.

She trades Lindex and IMVU credits. But nothing like WSE.

I beleive she did and it failed,

Which is saying something since she OBVIOUSLY has a much bigger stake to base a currency on than WSE.

She does that now, but I think 2-3 years back she tried making her own currency, the A$. I hear it was a royal flop.

Yea just found it actually. Two stock IPOs still exist. But 2-3 years ago is a lifetime really in these kinds of mediums. People didn't believe in the investment in virtual worlds as much as they do now. Interesting stuff to discuss really. This really has more to do with what can come out of ideas like SL and what will change in the future. Dreamland Stock Exchange is what it is called if anyone was wondering.

I just don't think most potential investors are going to see the need for a currency different that the USD/Euro or Linden$ when it comes to SL investing.

Most WIC$ will be held by people who got Stuck with them when they had initially paid in with L$.

It is totally disreputable to change currency on someone who has a running investment like that.

If WSE wants to do a new currency they should do so without forcing current investors to use it for their current investments.

For example if WSE says in order to make future investments here you need to convert to WIC's - okay.

As long as investors are given the choice to say "No thanks just give me my Linden$ back."

Yea which pretty much kills this guys credibility. If he actually did that and then reformatted things, it might work. I dunno, honestly going buy this guys poor videocast moment ( really should go down in the SL hall of shame), don't think he really is thinking in in terms of growing, more like covering himself. Like I said for me this is more than a debate about just SL. Anywho, that's all I got to say about this, back to obscurity for me.

I would definitely feel more comfortable with it if he would allow people the opportunity to get their L back. But because he has chosen to hold it hostage, it's highly suspect and reeks of Ginkoesque movements.

It does have a delaying-the-inevitable-while-packing-bags-to get-out-of-Dodge kind of feel to it.

Its pretty obvious why.

He doesn't have the money.

I don't think it was ever launched.

Why would any starting SL company add another layer of complexity to their business? A layer that is completely unnecessary. I wouldn't trust any company that takes part in this because it smacks of being a poor business person. If this is a fictional and fun game of playing stock market why not simply make those WICs completely fictional as well and not tied to any type of real world money. LL needs to shut this down.

I suspect the Company did shut this down, in a sense. You can't have dividend-paying 'banks' or whatever the proper legalese for it was.

So, no returns, no market. They aren't allowed to operate in that manner.

In that sense the $L games ended, for Nicholas, for Luke, for all of them, back in January. Or if you are more cynical, they ended back when gambling was banned.

I think you are right -

The whole house of cards started to topple with the gambling ban -

Because Gambling was the only industry that could drain away enough real USD$ to keep them paying off withdrawals and floating their Ponzi Boat.

I did not think WICs would work either. But you folks know more about virtual worlds than I.

The key issue for me with WICs was that I thought you cannot do anything with them apart from speculate in the stock market, of which I can do in real life as can you all too

Yes both gold and Lindens have fungibal value because they are of use. WICs only duplicate a real currency but without an inherent use