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$2B Counter-Strike 2 market crash exposes a legal black hole: Your digital investments aren’t really yours

$2B Counter-Strike 2 market crash reveals a legal gap: digital items you buy aren’t really yours. Learn why corporations can manipulate virtual economies without regulation or consumer protection.

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Last Updated on November 25, 2025 by Daily News Staff

$2B Counter-Strike 2 market crash exposes a legal black hole: Your digital investments aren’t really yours

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$2B Counter-Strike 2 market crash exposes a legal black hole: Your digital investments aren’t really yours

João Marinotti, Indiana University

In late October 2025, as much as US$2 billion vanished from a digital marketplace. This wasn’t a hack or a bubble bursting. It happened because one company, Valve, changed the rules for its video game Counter-Strike 2, a popular first-person shooter with a global player base of nearly 30 million monthly users.

For years, its players have bought, sold and traded digital cosmetic items, known as “skins.” Some rare items, particularly knives and gloves, commanded high prices in real-world money – up to $1.5 million – leading some gamers to treat the market like an investment portfolio. As a result, many investment-style analytics websites charge monthly fees for financial insight, trends and transaction data from this digital marketplace.

In one fell swoop, Valve unilaterally changed the game. It expanded the “trade up contract,” allowing players to exchange – or “trade up” – a number of their common assets into knives or gloves.

By flipping this switch, Valve instantly upended digital scarcity. The market was flooded with new supply, and the value of existing high-end items collapsed. Prices plummeted, initially erasing half the market’s total value, which exceeded $6 billion before the recent crash. Although a partial recovery brought the net loss to roughly 25%, significant volatility continues, leaving investors unsure whether the bottom has truly fallen out.

Many of those who saw their digital fortunes evaporate immediately wondered whether there was anything they could do to get their money back. Speaking as a law professor and a gamer myself, the answer isn’t what they want to hear: no. In fact, the existing legal structure largely protects Valve’s ability to engage in this sort of digital market manipulation. Players and investors were simply out of luck.

The Counter-Strike 2 crash reveals a troubling reality that extends far beyond video games: Corporations have built exchange-scale investment markets governed primarily by private terms-of-service agreements, rather than the robust set of public regulations that oversee traditional financial and consumer markets. These digital economies occupy a legal blind spot, lacking the fundamental guardrails of property rights, meaningful consumer protection or even securities regulation.

Buyers’ guides like this one have cropped up on YouTube.

Your digital ‘property’ isn’t really yours

If you spend real money on a digital item, it may feel like you should own it. Legally, you don’t.

The digital economy is built on a crucial distinction between ownership and licensing. When users sign up for Steam, Valve’s platform, they agree to the Steam subscriber agreement. Buried in that contract is a critical piece of legalese stating that all digital assets and services provided by Valve, including the Counter-Strike 2 skins, are merely “licensed, not sold.” The license granted to users “confers no title or ownership” at all. This isn’t meaningless corporate jargon; it’s a legal standard routinely affirmed by U.S. courts.

The legal implication is clear: Because players only license their skins, they have no property rights over them. When Valve changed the game’s mechanics in a way that collapsed the items’ market value, it didn’t steal, damage or destroy anyone’s “property.” In the eyes of the law, Valve simply altered the conditions of a license, something that its terms-of-service agreement allows it to do unilaterally, at any time, for any reason.

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Consumer protection laws don’t apply

While the Counter-Strike 2 crash may seem like a violation of consumer rights, current laws are ill-equipped to handle this type of corporate behavior.

Lawmakers have begun addressing concerns about digital goods, primarily focusing on instances where purchased movies or games disappear entirely from user libraries. For example, California recently enacted AB 2426. This law requires transparency, prohibiting terms like “buy” or “purchase” unless the consumer confirms that they understand they will receive only a revocable license.

As commendable as this law is, it protects only against confusion and loss of access, not loss of market value when platforms rebalance virtual economies. Valve can comply with consumer transparency laws and still adjust the supply of digital items, rendering them valueless overnight. Ultimately, current consumer protection laws are designed to ensure users know what they are licensing. They do not, however, create ownership interests or protect the speculative value of those digital items.

Game items are treated like unregulated stocks

Perhaps the most significant legal vacuum is the absence of financial regulation. The Counter-Strike 2 economy, a multibillion-dollar ecosystem with dedicated investors and third-party cash markets, looks and behaves like a traditional financial market. Yet, it remains outside the purview of any financial regulator, such as the U.S. Securities and Exchange Commission.

Under U.S. law, the primary standard for determining whether an asset should be governed as a security is the Howey test. According to this Supreme Court precedent, an asset is a security if it meets four criteria. Securities involve an “investment of money” in a “common enterprise” with a reasonable expectation of “profits” derived from the “efforts of others.”

Counter-Strike 2 skins arguably meet all of these criteria. Participants invest real money in a common enterprise – Valve’s platform – with an expectation of profit. Crucially, that profit depends on the “efforts of others.” The SEC notes this prong is met when a promoter provides “essential managerial efforts” that affect the enterprise’s success. Valve controls the game’s development, manages the platform and – as the recent update proves – dictates item supply and scarcity.

If a publicly traded company unilaterally changed its rules in a way that predictably tanked the price of its own shares, regulators would immediately investigate for market manipulation. So how can Valve get away with this? Three things cut against the skins’ status as securities.

First is their “consumptive intent” – skins are primarily game cosmetics. Second, there’s no way to convert the skins into dollars within Valve’s own ecosystem. In other words, third-party markets allow users to cash out, but these markets operate outside Valve’s own immediate control. And finally, the Howey test generally governs assets, such as stocks and bonds, that grant investors enforceable rights. Valve’s licensing scheme attempts to circumvent this by ensuring players hold nothing but a revocable license.

In my view, the $2 billion crash is a wake-up call. As digital economies grow in financial significance, society must decide: Will these markets continue to be governed solely by private corporate contracts? Or will they require integration into more robust legal frameworks, such as securities regulation, consumer protection and property law?

João Marinotti, Associate Professor of Law, Indiana University

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This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Senior Assist Day Marks Four Years of Supporting Seniors in South Phoenix

Senior Assist Day celebrates four years of serving seniors at Tanner Gardens in South Phoenix, led by Assistory Outreach Services and founder Jon Taylor.

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Senior Assist Day celebrates four years of serving seniors at Tanner Gardens in South Phoenix, led by Assistory Outreach Services and founder Jon Taylor.

Senior Assist Day Marks Four Years of Supporting Seniors in South Phoenix

PHOENIX, AZ — Senior Assist Day reached a meaningful milestone this year, marking four years of service to seniors living at Tanner Gardens in South Phoenix. Hosted by Assistory Outreach Services, the annual event continues to provide dignity, connection, and practical support to an often-overlooked population.

A Personal Beginning

The origins of Senior Assist Day are deeply personal for Assistory Outreach Services founder and CEO Jon Taylor.
“The origin of me going to Tanner Gardens was when I was with the 100 Black Men of Phoenix. We used to do a luncheon for seniors around December.”
That early connection took on new meaning as Taylor’s mother began showing signs of dementia, inspiring him to create an event rooted in empathy and care.
“I got a great feeling from being around those senior citizens. Senior Assist Day is roughly based on my mother.”

An Event That Continues to Grow

What began as a small gathering has grown into a full community experience. Seniors now enjoy catered meals, live music, personal care services, and gifts tailored to their needs. This year’s event included authentic Mexican food, live holiday music, haircuts provided by AJ’s Barbershop, and the donation of new shoes — a moment that stood out for many attendees.
“Seeing the excitement and how they were reacting to the new shoes was incredible,” Taylor said.

Beyond a Single Day

Senior Assist Day also helps build trust between Assistory Outreach Services and the residents of Tanner Gardens, opening the door to additional programs throughout the year. Through initiatives like the Digital Access Program for Seniors (DAPs), the organization helps seniors develop basic phone and computer skills, empowering them to stay connected and informed.

Challenges and Purpose

Keeping the event going year after year requires dedication and resources. Taylor personally raises funds and helps purchase gifts for more than 130 residents annually. Despite the challenges, his motivation remains strong.
“I do feel as though this is my ministry. I’m providing services, and I’m being fulfilled at the same time.”

Looking Ahead

Looking to the future, Taylor envisions Senior Assist Day becoming an all-day celebration, offering expanded services, entertainment, and meals — all focused exclusively on the residents of Tanner Gardens. As the event enters its fifth year, Senior Assist Day stands as a testament to what consistent community engagement and compassion can achieve.   About Assistory Outreach Services Assistory Outreach Services is a community-based nonprofit organization dedicated to empowering seniors, low-income residents, and individuals experiencing homelessness. Assistory helps senior citizens embrace technology by teaching basic cell phone and computer skills, using a formula rooted in education, love, and patience to remove fear and build confidence. In addition to senior programming, the organization focuses on serving low-income and homeless populations by providing food boxes, holiday meals, and homeless care packages known as Assist Packs. This year, Assistory Outreach Services is expanding its impact by partnering with other nonprofits and religious organizations to coordinate food distribution through its community food pantry. Coverage by STM Daily News.

STM Daily News is a multifaceted podcast that explores a wide range of topics, from life and consumer issues to the latest in food and beverage trends. Our discussions dive into the realms of science, covering everything from space and Earth to nature, artificial intelligence, and astronomy. We also celebrate the amateur sports scene, highlighting local athletes and events, including our special segment on senior Pickleball, where we report on the latest happenings in this exciting community. With our diverse content, STM Daily News aims to inform, entertain, and engage listeners, providing a comprehensive look at the issues that matter most in our daily lives. https://stories-this-moment.castos.com/

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    Rod: A creative force, blending words, images, and flavors. Blogger, writer, filmmaker, and photographer. Cooking enthusiast with a sci-fi vision. Passionate about his upcoming series and dedicated to TNC Network. Partnered with Rebecca Washington for a shared journey of love and art.

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Educators Are Being Priced Out of Their Communities—These Cities Are Building Subsidized Teacher Housing to Bring Them Back

Teacher Housing: As housing costs rise and teacher pay stagnates, cities and school districts are building education workforce housing to attract and retain educators—cutting commutes and strengthening community ties.

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As housing costs rise and teacher pay stagnates, cities and school districts are building education workforce housing to attract and retain educators—cutting commutes and strengthening community ties.
Developers of Wendy’s Village, an affordable housing complex planned for teachers in Colorado Springs, Colo., completed their first homes in July 2025. WeFortify

America’s educators are being priced out of their communities − these cities are building subsidized teacher housing to lure them back

Jeff Kruth, Miami University and Tammy Schwartz, Miami University For much of the 20th century, teaching was a stable, middle-class job in the U.S. Now it’s becoming a lot harder to survive on a teacher’s salary: Wages have been stagnant for decades, according to a study from the Economic Policy Institute, and teachers earn 5% less than they did a decade ago when adjusting for inflation. That’s one reason why there’s a widespread teacher shortage, with tens of thousands of positions going unfilled. At the same time, according to a 2022 report from the Annenberg Institute at Brown University, there are more than 160,000 underqualified teachers in the classroom, meaning they don’t meet full certification or credentialing standards. This issue has become particularly acute as housing costs have risen sharply across the country over the past decade. Why become a teacher if it means you’ll struggle to put a roof over your head? In response, many states and cities, from California to Cincinnati, are exploring ways to attract and retain teachers by developing education workforce housing – affordable housing built specifically for public school teachers and staff to make it easier for them to live near where they work. In doing so, they seek to address aspects of both the teacher shortage and housing crisis.

Fertile land for housing

As professors of architecture and education and as directors of an urban teaching program at Miami University in Ohio, we work to make it easier for students to pursue teaching careers – and that includes addressing affordable housing issues in communities where they work. A key element of this work involves collaborating with local education agencies to either build, subsidize or find housing for teachers. Local education agencies are tasked with the administrative functions of a school district, and they often own large tracts of land. This land can be used to build new school buildings or community health clinics. But it can also be used to build housing – a particularly attractive option in cities where land can be scarce and expensive. California has been at the forefront of these efforts. The state’s school districts own more than 75,000 acres of potentially developable land. Meanwhile, more than one-third of the state’s public school employees are rent-burdened, meaning they spend more than 30% of their income on housing costs. California’s Teacher Housing Act of 2016 set up a framework for local education agencies to build and develop housing on their land. Since then, education workforce housing complexes have been developed across the state, ranging from San Francisco’s Shirley Chisolm Village to 705 Serramonte in Daly City, California.
The San Francisco Unified School District celebrated the opening of Shirley Chisolm Village, the city’s first educator housing development, in September 2025.
The nuts and bolts of education workforce housing vary. It can be financed by traditional sources, such as private philanthropy and government funds. But it can also be funded through financial tools such as certificates of participation, which allow outside investors to provide funding up front and later receive a return on their investment through rental income. In some cases, teachers are offered reduced rents for just a few years as they start their careers. In others, they’re given the opportunity to purchase their home. Third party management companies often oversee the projects, since local education agencies usually aren’t interested in property management. This also reduces the potential for any direct disputes between employer and employee. Many programs require only that residents be employees of the school district when they enter the program, meaning if someone leaves their job, they will not be displaced. In April 2025, UCLA’s CITYLab and the Center for Cities and Schools published a study highlighting some of the benefits and challenges of nine educator workforce housing projects built in California. The complexes ranged in size, from 18 to 141 dwelling units, with heights that ranged from two to six stories. The researchers found that tenants were largely satisfied with their living situations: They paid rents at far below market rate, and they praised the apartment design. They also highlighted their shorter commutes.

From tiny homes to factory conversions

Since 2020, educator housing has been proposed or developed in Arkansas, Colorado, Florida, Nevada and South Carolina. In Fort Stockton, a small, rural town in West Texas, the school district bought a motel in 2022 and converted it into teacher housing. In Arizona, the Chino Valley Unified School District built tiny homes for its teachers in 2023, renting them at US$550 per month.
The Chino Valley Unified School District built tiny homes for its workers in 2023.
In Baltimore, more than 775 teachers have recently been housed thanks to initiatives such as the Union Mill project, an 86,000-square-foot historic building converted into teacher apartments that range in price from $700 to $1200 per month. Teacher housing does more than give educators an affordable place to live. It can forge lasting relationships. A recent assessment of teacher housing in Los Angeles found that the community spaces and programs offered on site strengthened bonds among the residents, leading to friendships and working relationships that lasted for years.
A spacious living space featuring a billiards table, chairs, tables and a large, built-in bookcase filled with books.
A community room in Norwood Learning Village, a 29-unit affordable housing development for Los Angeles Unified School District employees. © Alexander Vertikoff for Thomas Saffron and Associates and Norwood Learning Village

Building community in and out of the classroom

Here in Cincinnati, our own graduates now working in schools also benefit from affordable housing options. Through a partnership between Miami University and St. Francis Seraph, early career teachers from our TEACh and Urban Cohort programs have access to affordable housing. In 2024, the Archdiocese of Cincinnati converted an old church property in Cincinnati’s Over-the-Rhine neighborhood into teacher apartments, which recent graduates can rent at a reduced rate. Most young teachers otherwise wouldn’t be able to afford living in this area.
A group of people smile as two women cut a red ribbon.
In 2024, the Archdiocese of Cincinnati collaborated with Miami University to convert the St. Francis Seraph Church building in the city’s Over-the-Rhine neighborhood into affordable housing for recent teaching graduates. Photo: Je’Von Calhoun, CC BY-SA
“I wouldn’t be able to spend my beginning years as an educator in the community without access to affordable housing,” Nicholas Detzel, a graduate teacher now living in the converted space, told us in an interview. “Living in the community has been an amazing experience and helps you know your students on a completely different level,” he added. “It has also helped me relate to students about knowing what is going on in our community.” Teachers like Detzel who live in Over-the-Rhine can walk or take public transportation to the local schools where they work. Perhaps more importantly, they can better understand the world of their students. They can learn the streets that students avoid, the parks and community spaces that become popular after-school hangouts, and what community organizations offer summer programming. Ultimately, teachers grounded in the life of the community can build relationships outside of the walls of school that contribute to more trust in the classroom. Providing affordable housing for teachers and staff also helps retention rates, particularly as many younger teachers leave the profession due to low pay and burnout. Teacher housing programs are still in their infancy. There are roughly 3.2 million public school teachers nationwide, and there are probably fewer than 100 of these developments completed or in progress. Yet more and more districts are expressing interest, because they help alleviate two major concerns affecting so many American communities: affordable housing and a quality education. While the need for affordable housing spans both lower- and middle-class families, teachers or not, forging alliances between schools and affordable housing providers can serve as one path forward – and possibly serve as a model for other trades and professions.The Conversation Jeff Kruth, Assistant Professor of Architecture, Miami University and Tammy Schwartz, Director of the Urban Cohort, Miami University This article is republished from The Conversation under a Creative Commons license. Read the original article.

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2025’s words of the year reflect a year of digital disillusionment

From “AI slop” to “rage bait” and “parasocial,” 2025’s words of the year reflect growing distrust in online life—where manipulation, misinformation, and fake relationships thrive.

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From “AI slop” to “rage bait” and “parasocial,” 2025’s words of the year reflect growing distrust in online life—where manipulation, misinformation, and fake relationships thrive.
Many of the year’s winners reference the lack of meaning and certainty in our online interactions. Mininyx Doodle/iStock via Getty Images

2025’s words of the year reflect a year of digital disillusionment

Roger J. Kreuz, University of Memphis Which terms best represent 2025? Every year, editors for publications ranging from the Oxford English Dictionary to the Macquarie Dictionary of Australian English select a “word of the year.” Sometimes these terms are thematically related, particularly in the wake of world-altering events. “Pandemic,” “lockdown” and “coronavirus,” for example, were among the words chosen in 2020. At other times, they are a potpourri of various cultural trends, as with 2022’s “goblin mode,” “permacrisis” and “gaslighting.” This year’s slate largely centers on digital life. But rather than reflecting the unbridled optimism about the internet of the early aughts – when words like “w00t,” “blog,” “tweet” and even “face with tears of joy” emoji (😂) were chosen – this year’s selections reflect a growing unease over how the internet has become a hotbed of artifice, manipulation and fake relationships.

When seeing isn’t believing

A committee representing the Macquarie Dictionary of Australian English settled on “AI slop” for their word of the year. Macquarie defines the term, which was popularized in 2024 by British programmer Simon Willison and tech journalist Casey Newton, as “low-quality content created by generative AI, often containing errors, and not requested by the user.” AI slop – which can range from a saccharine image of a young girl clinging to her little dog to career advice on LinkedIn – often goes viral, as gullible social media users share these computer-generated videos, text and graphics with others. Images have been manipulated or altered since the dawn of photography. The technique was then improved, with an assist from AI, to create “deepfakes,” which allows existing images to be turned into video clips in surreal ways. Yes, you can now watch Hitler teaming up with Stalin to sing a 1970s hit by The Buggles. What makes AI slop different is that images or video can be created out of whole cloth by providing a chatbot with just a prompt – no matter how bizarre the request or ensuing output.

Meet my new friend, ChatGPT

The editors of the Cambridge Dictionary chose “parasocial.” They define this as “involving or relating to a connection that someone feels between themselves and a famous person they do not know, a character in a book, film, TV series … or an artificial intelligence.” These asymmetric relationships, according to the dictionary’s chief editor, are the result of “the public’s fascination with celebrities and their lifestyles,” and this interest “continues to reach new heights.” As an example, Cambridge’s announcement cited the engagement of singer Taylor Swift and football player Travis Kelce, which led to a spike in online searches for the meaning of the term. Many Swifties reacted with unbridled joy, as if their best friend or sibling had just decided to tie the knot. But the term isn’t a new one: It was coined by sociologists in 1956 to describe “the illusion” of having “a face-to-face relationship” with a performer. However, parasocial relationships can take a bizarre or even ominous turn when the object of one’s affections is a chatbot. People are developing true feelings for these AI systems, whether they see them as a trusted friend or even a romantic partner. Young people, in particular, are now turning to generative AI for therapy.

Taking the bait

The Oxford Dictionary’s word of the year is “rage bait,” which the editors define as “online content deliberately designed to elicit anger or outrage by being frustrating, provocative, or offensive, typically posted in order to increase traffic to or engagement with a particular web page or social media content.” This is only the latest word for forms of emotional manipulation that have plagued the online world since the days of dial-up internet. Related terms include trolling, sealioning and trashposting. Unlike a hot take – a hasty opinion on a topic that may be poorly reasoned or articulated – rage baiting is intended to be inflammatory. And it can be seen as both a cause and a result of political polarization. People who post rage bait have been shown to lack empathy and to regard other people’s emotions as something to be exploited or even monetized. Rage baiters, in short, reflect the dark side of the attention economy.
Glitchy image of a red, sinister-looking skull.
Rage baiters have little concern for the people whose emotions they exploit for attention or profit. yamonstro/iStock via Getty Images

Meaningless meaning

Perhaps the most contentious choice in 2025 was “6-7,” chosen by Dictionary.com. In this case, the controversy has to do with the actual meaning of this bit of Gen Alpha slang. The editors of the website describe it as being “meaningless, ubiquitous, and nonsensical.” Although its definition may be slippery, the term itself can be found in the lyrics of the rapper Skrilla, who released the single “Doot Doot (6 7)” in early 2025. It was popularized by 17-year-old basketball standout Taylen Kinney. For his part, Skrilla claimed that he “never put an actual meaning on it, and I still would not want to.” “6-7” is sometimes accompanied by a gesture, as if one were comparing the weight of objects held in both hands. British Prime Minister Keir Starmer recently performed this hand motion during a school visit. The young students were delighted. Their teacher, however, informed Starmer that her charges weren’t allowed to use it at the school, which prompted a clumsy apology from the chastened prime minister.

Throw your hands in the air?

The common element that these words share may be an attitude best described as digital nihilism. As online misinformation, AI-generated text and images, fake news and conspiracy theories abound, it’s increasingly difficult to know whom or what to believe or trust. Digital nihilism is, in essence, an acknowledgment of a lack of meaning and certainty in our online interactions. This year’s crop of words might best be summed up by a single emoji: the shrug (🤷). Throwing one’s hands up, in resignation or indifference, captures the anarchy that seems to characterize our digital lives.The Conversation Roger J. Kreuz, Associate Dean and Feinstone Interdisciplinary Research Professor​, University of Memphis This article is republished from The Conversation under a Creative Commons license. Read the original article.

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