Valve’s Counter-Strike 2 update crashes $5.8B economy, revives NFT debate

Counter-Strike 2 cosmetic item prices crashed after a Valve update changed the trade-up system, and blockchain proponents have cited the episode to argue for smart contracts and NFTs in games. Esports News reported an Oct. 8 skin market high of nearly $5.78 billion, and Eurogamer reported that almost $2 billion of it was liquidated after the update. The update let players convert five low-rarity covert-level skins into a knife or a pair of gloves, which were previously exceedingly rare, instantly increasing their supply and driving down prices. Martin Kupka of Win Win said NFTs alone would not have prevented the crash because Valve retains control over the items, though smart contracts could make rules immutable.