Do NFTs have real world value? This issue has sparked several debates across the crypto-industry. For now, however, an industry giant is reportedly making his views on the matter crystal clear.
Steam, the popular digital gaming platform, began banning all applications based on blockchain that allow cryptocurrency or NFT trading. The silent but definitive movement has left members of the GameFi sphere reeling, with even major players speaking out.
In this article, we will discuss:
I'm not a fan of NFTs
In the “Rules and Guidelines” section, which lists what should not be published on the platform, Steam developers Valve shared a new entry –
"Applications based on blockchain technology that emit or allow the exchange of cryptocurrencies or NFTs."
Other prohibited material on the list includes hate speech, sexually explicit images of real individuals, content that exploits children, malware and more.
One community stricken by the ban is Age of Rust, an NFT-based adventure game. A representative stated that the decision was made because Steam's policy “does not allow items with real world value” to be part of its ecosystem.
Steam's point of view is that items have value and they don't allow items that can have real-world value on their platform. While I respect their choice, I fundamentally believe that NFTs and blockchain games are the future. It's why I started this journey with all of you.
3/4— Age of Rust (@SpacePirate_io) October 14, 2021
On the contrary, the COO of the Axie Infinity stated that the new guideline has not yet been added to the Steam Direct page.
Why the ban?
So far, there has been no formal statement on Valve's blockchain ban. While many have suggested possible causes, one reason could be that Valve collects legal details such as bank and company information. This is to pay users who are part of the “Steamworks integration process”.
Valve also performs identity verification and tax documents. With that in mind, blockchain-based applications and their creators can be difficult to audit.
Furthermore, some provisions of the US Infrastructure Bill related to digital assets could make NFTs and cryptocurrency regulations more difficult for businesses.
Seeing whether NFTs have any value outside of their native ecosystems, it's worth noting that Visa recently purchased a CryptoPunk for $150.000. Also, earlier in the month, a SolMonkey sold for around $2 million.
the numbers game
The rise in popularity seen by GameFi and NFT based games is almost impossible to ignore. Between the second and third quarters of 2021, Axie Infinity's revenue skyrocketed about 48 times. In addition, Axie Infinity's market capitalization places it on the list of the top five giants in traditional video games.
In Q3 2021, Axie Infinity produced $782 million in revenue – up 48X since last quarter.
If you're wondering why investors are excited, this is a big reason why. pic.twitter.com/IoeXtEbswK
- Ryan Watkins (@RyanWatkins_) October 3, 2021
Despite the slight change in the rules, however, Steam's ban did not go unnoticed for long. One vocal critic was Sky Mavis – the creator of Axie Infinity. On October 16, the company tweeted,
“Today, @Steam has blocked all Blockchain-built games and NFTs from its store. Our Mavis Hub represents a different path – a future where players will have property rights and economic freedom. We will win. The future of the game is at stake. ”
It is noteworthy that Sky Mavis also took the opportunity to promote the company's own game launcher.
