Gabe Newell Explains Why Steam Banned NFTs: “Super Sketchy,” “Illegal Sh*t”

NFTs, or “Non-Fungible Tokens,” are digital assets of one thing that can be owned by more than one person. They’re the newest trend in blockchain games and have been banned from Steam because they present security risks to the platform. In this video interview, Gabe Newell discusses why NFTs have created problems for developers on their platform and how he’d like to see future versions of them with less risk involved.

Gabe Newell, the co-founder of Valve Corporation, recently explained why Steam has banned NFTs. He said that he believes they are “super sketchy,” and “illegal sh*t.”

Gabe-Newell-Explains-Why-Steam-Banned-NFTs-Super-Sketchy-Illegal Image courtesy of GameSpot

Despite the growing number of game companies dropping their pants to furiously wank at the prospect of non-fungible tokens, Valve has remained committed to its policy of banning any blockchain title that issues or allows exchange of the technology on Steam, which the company decided to implement last year in response to the growing popularity of titles like Age of Rust, a puzzle game that awarded players non-fungible tokens as a reward.

Gabe Newell, the big man himself, has now taken the chance to clarify that choice months later, telling Eurogamer why Valve is so hostile to the trendy blockchain technology that has enthralled some of the world’s top publishers, including Ubisoft, in a new interview. Newell’s issue with NFTs seems to have less to do with the technology itself and more to do with the crowd behind it, who, according to the Valve CEO, is abusing it in “sketchy” ways, meaning that there is a lot of illegal behavior going on.

Newell also said that Valve has stayed away from cryptocurrencies owing to their extreme volatility, in which the value of a coin or token may rapidly fluctuate by hundreds of percents in hours, if not minutes. Another concern that implies players won’t be able to pay for Steam games with their crypto investments anytime soon is fraudulent transactions.

Newell told Eurogamer, “The things that were being done were really dubious.” “And there was some unlawful nonsense going on behind the scenes, and you’re like, ‘Yeah, this is horrible.’” Blockchains are a fantastic technology, but the manner in which it has been used thus far are all very hazy. And it’s something you’d want to avoid.”

“When we accept cryptocurrencies, we have the same issue; 50 percent of the coin paid for transactions is fake, right?” When you see it, you think to yourself, “Wow, that’s horrible.” Then there was bitcoin volatility, which meant that customers had no clue what they were paying. Yes, they were tied to a cryptocurrency, but the majority of people’s paychecks aren’t paid in cryptocurrencies.”

“So they’re asking, ‘How come I just spent $498 for this product?’” And if the answer is yes, well, that’s what happens when you’re paying with a very volatile currency. That’s like, today you spent 99 cents for it, and tomorrow you’ll spend $498 for and those who irritate others. So that wasn’t a good strategy. People who are actively engaged in that sector are often not excellent performers.”

Gabe Newell discusses why Steam has prohibited the use of NFTs (Eurogamer)

Valve took a statement in October, banning all blockchain games from its Steam marketplace and revising its policy papers to reflect the decision.
The change was well-received by the general public, however the creator of Age of Rust, one of the games affected by the new policy, went into further detail, alleging that Steam didn’t want to allow real-world value products on its store.
It was an intriguing argument, particularly in light of Valve’s recent success with Team Fortress 2 caps and CS: GO skins, so when I had the opportunity to chat with Valve co-founder and president Gabe Newell, I felt it’d be worth asking for additional clarification on the issue.