Gabe Newell Banned NFTs from Steam Due to ‘Sketchy Behavior’ and ‘Out of Control’ Fraud

Valve has already taken a stand on NFTs and cryptocurrencies allowed on Steam by blocking games that use blockchain technology. President and co-founder Gabe Newell have now explained the reason for the decision, saying that the biggest concerns were the volatility of the cryptocurrency and the bad actors behind NFTs.

IN interview with Rock Paper Shotgun, Newell noted that it is important to separate NFT technology from unscrupulous users. The concepts of digital ownership and shared universes are good in their own right, he says, but he believes the bad players in the NFT community outweigh any potential upsides.

“However, people in space tend to be involved in a lot of criminal activity and in many sketchy acts,” he said. “So it has a lot more to do with the actors than the underlying technology.”

He further explains that these people are not the kind of people Valve wants to deal with. In his opinion, the space is filled with people who use NFTs as an opportunity to deceive customers or engage in money laundering.

Also, when Steam accepted cryptocurrencies as payment for games, the huge volatility associated with it created problems for users. When it comes to buying everyday items, shoppers don’t want the price to fluctuate that much. “For example, why did I spend $497 one day to buy a game and the next day I spent 47 cents, what’s going on here? Volatility is bad in a medium of exchange,” he explained.

Ubisoft Quartz – How Blockchain-Based NFT System Works

He also said that the vast majority of cryptocurrency transactions on Steam were fraudulent. While fraud cannot be completely ruled out, ideally, fraud should only account for a couple percent of total transactions. However, according to him, fraud accounts for half of all cryptocurrency transactions: “It just gets out of hand, right?”

As for the concept of digital property and the metaverse, Newell dedicated Final Fantasy 14 to a separate topic. interview with PCGamer. “Most people who talk about the metaverse have absolutely no idea what they are talking about. And they have apparently never played an MMO,” he explained. “They’re like, ‘Oh, you’re going to have this custom avatar.’ And it’s like… go to La Noscea in Final Fantasy 14 and tell me it’s not a ten-year-old problem solved, not some incredible thing that you, you know, invent.”

Luckily, Final Fantasy 14 won’t have NFTs either.

George Young is a freelance writer for IGN. You can follow him on Twitter @yinyangfooey

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