World Stock Exchange - the latest controversy

November 4, 2007

I noticed on SL Reports.net that the World Stock Exchange (WSE) run by Australian, LukeConnell Vandeverre, is subject to controversy again.

A virtual financial company called Midas Group has declared bankruptcy and alleges that WSE is part of the cause due to not paying a bond payment. There’s been calls made for WSE boycotts and much more.

What this latest drama reinforces is the fundamental problem with the unregulated financial system in SL - why would any serious investor look at a system where there’s no regulation and multiple stock exchanges that publicly criticise each other’s viability? One of the main value propositions of Second Life is it’s freedom, but this is one area where too much freedom may be one of the virtual world’s major pitfalls.

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Written by Lowell Cremorne · Filed Under Australian News, Business

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SLOZ User 9 months ago 1 point
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You can read the Hope Capital Report that explains the situation regarding Hope Capital Bonds which was released over 3 weeks ago.

Even if Hope Capital did make a bond interest payment rather than moving it forward, Midas Bank would have only received around L$600,000 which would be the only income for his net bank deposits of L$8m to L10m. This represents around 6% cash reserve, an extremely risky cash position for his bank and related companies.

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SLOZ User 9 months ago 1 point
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Report URL: http://www.wselive.com/research/announcement_de...

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Mykos DeCart 9 months ago 1 point
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Words cannot describe what complete scum Luke Connell is. At least this time Sloz didnt interview him, giving him the chance to spread his hatred throughout the world.

When is LL going to ban this donkey, he is a disgrace to our nation

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