The video game industry has introduced a new class of alternative investments—virtual items. The Counter-Strike skin market, valued at $6 billion, has shown all the risks of investments lacking independent oversight. The community witnessed a sharp crash after the October 23 update, when Valve changed the mechanics for obtaining knives and gloves, making them easier to acquire by trading in five "red" skins.
Previously, knives could only be obtained from cases with very low odds, and some were worth $10,000–$20,000. After the update, the potential supply of knives could double, which triggered a rapid price drop—some items lost up to 70% of their value. The market capitalisation dropped by over $2 billion in a single day.
Knife owners panicked and sold off, deepening the collapse, while "red" skins skyrocketed in price. This volatility stems from a complete lack of independent regulation. Unlike stocks, real estate, or even cryptocurrencies, these virtual assets are fully controlled by the game's developer. Valve can change the rules at any time, without warning, consultation, or compensation.
This is the key difference from decentralised assets: investor risk remains high because the system is run by a single company. Experts suggest that these "investments" are more akin to speculation, subject to the developer’s decisions and with little protection for investors.
Experts emphasize the importance of diversification and understanding risks—real value should be independent of the controller’s will, as with gold or real estate. The skin market will continue, but confidence in its stability as an investment instrument has been undermined.
