Steam's Ban of $2 Million Skins Spurs Debate: Can NFTs Provide a Solution?

ChainPlay

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11 months ago

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If you’re like me, lurking and browsing Twitter is something that’s part of your daily routine. It’s full of great resources for finance and crypto - also for hearing out people’s opinions on the latest web3 happenings.

Web3 gaming Twitter right now is undergoing a heated debate over recent news of one of gaming’s top-grossing games in the industry, Counter-Strike: Global Offensive(CS: GO), and its recent ban on several players.

In a recent turn of events, 40 CS: GO players have found their accounts banned by the most popular gaming platform in the world, Steam, resulting in the loss of $2 million worth of in-game skins. This development has sparked discussions within the crypto and web3 communities, with advocates claiming that NFTs (Non-Fungible Tokens) could offer a solution to such issues.

Will NFTs be the savior to alleviate web2’s problems with digital ownership? Whether you’re skeptical or a die-hard advocate of the blockchain, it’s important to know the facts first and investigate the matter.

The CS: GO Skin Market 

CS: GO has one of the most robust in-game skin economies in video gaming, revolving around its various decorated guns, knives, and gloves players can equip while shooting heads. 

There are millions of dollars worth of skins traded every year, one particular skin even traded for a record-breaking $500,000 this year.

However, Valve, the developer behind CS: GO, has consistently expressed its opposition to gambling and has actively banned accounts associated with third-party marketplaces. This recent ban was due to the targeted accounts tied to the CSGORoll supplier program, a secret program that allows select traders to withdraw their on-site balance as cryptocurrency. 

The program is also notorious for its alleged affiliation with money laundering and tax avoidance. However, regardless of whether or not there are nefarious activities under wraps, the players have clearly gone against CS: GO’s terms of service. This gives Valve the right to ban players all within its rights.

“Web3 Fixes This,” Says Mr. Crypto

Once the news spread, web3 advocates have taken to social media, proclaiming that "Web3 fixes this."  Ranging from web3 gaming YouTuber icons to industry leaders, this seems to be the dominant narrative in NFT gaming at the moment.

Their argument revolves around the notion that if CS: GO skins were represented as NFTs, players would have full ownership and control over their assets. Even if Valve were to ban them from the game, they could still trade or sell their NFT skins on blockchain-based marketplaces.

The core distinction lies in the ownership and custody of assets. With centralized exchanges, users often relinquish control over their assets to the exchange itself. However, NFTs empower individuals with true ownership and custody of their assets. While Valve could still restrict in-game use and impact their market value, the players would retain control over their NFT skins.

Do CS: GO players really own their skins and assets?

No.

Could the situation have gone better if the skins were NFTs?

It’s likely yes.

However, the integration of NFTs into CS: Go by Valve is still a scenario that’s very unlikely to happen. Valve has historically been stern in its disdain against NFTs. Without Valve's adoption of NFT technology, CS: GO players remain susceptible to the decisions of a centralized gaming giant.

Conclusion

The recent ban of $2 million worth of CS: GO skins by Steam has fueled discussions around the potential of NFTs to address such issues.  While NFTs offer the prospect of true ownership and control, Valve's stance on NFT games presents a significant hurdle. Until then, CS: GO players may continue to face vulnerability within a centralized gaming ecosystem.