CS2 Market Cap Crashes Nearly $2 Billion Overnight Following Controversial Knife and Glove Swap Update

Following the release of the controversial knife and glove swap update a few hours ago, CS2’s market cap collapsed by almost $2 billion overnight. The panic over the possibility of creating new knives and gloves with just five Covert (Red) items has seen the CS2 market cap fall from a recent high of $6 billion to just over $4 billion at the time of writing.

Will the CS2 market capitalization continue to collapse?

Currently, it appears that the CS2 market cap remains in free fall. Europe is still waking up to the news of the new CS2 update, so sales will likely continue for a short while yet. It’s important to note that due to the limited supply of secret items (which have now skyrocketed in price), there is a hard limit on the number of new CS2 knives and gloves that can be added to the game.

For this reason, we probably won’t know exactly how the volume of each element will be affected until the dust has settled. But the market is the market, and instant reactions to such a huge update would always be the case. With CS2’s market cap currently sitting at $4.1 billion, don’t be surprised to see it collapse even further, in my opinion.

Will Valve react?

It’s hard to say how Valve will respond to CS2’s market cap collapse. The market and its manipulation had become a problem that needed to be addressed, but it is difficult to see how this would solve it. Items will still be handled, even if cheap covers no longer exist.

One thing is certain: the cat is now out of the bag. The developer cannot roll back the update and must now fully commit to this change, for better or worse. But a direct response from Valve would be unprecedented from the ever-elusive developer. Don’t expect a statement from Valve. However, it’s rare for a new game update to directly affect CS2’s market cap in such drastic proportions, so these are unprecedented times.

While this isn’t financial advice, those with gigantic investments in Counter-Strike stocks should probably hold fire before shedding their skin. The market will stabilize, to some extent. Acting on a whim when CS2’s market cap is so volatile could prove unwise, especially as Valve itself assesses the damage it has done to knife and glove prices.