YouTube’s expanded policy targeting videos related to blockchain-based gaming, particularly those involving NFTs and cryptocurrencies, has prompted accusations of censorship and anticompetitive practices from decentralized platforms, triggering a broader debate over content control.
The new restrictions, which prohibit content promoting or simulating “digital gambling” with virtual goods like NFTs, caused an immediate downturn in several major Web3 gaming tokens.
Tokens such as RENDER and IMX dropped over 9% in value. MANA and SAND saw declines exceeding 5%, while FLOKI fell 7.6% and STX dropped 6.9% in the 24 hours following the announcement.
The controversy deepened with reports that YouTube was silently removing links to Odysee, a blockchain-based video platform. Odysee’s team accused YouTube of anticompetitive behavior and urged public pressure against the company.
Odysee, launched in 2020, positions itself as a “free expression” alternative. It allows creators to keep videos on the blockchain even if removed and receive cryptocurrency tips rather than traditional ad revenue.
YouTube did not specifically address Odysee. The company referred to its existing policies against spam and external links associated with scams or misleading material.
The updated policy broadens the platform’s prohibition on content linking to uncertified gambling services. It now includes any form of “digital gambling” using virtual goods with monetary value, such as NFTs or in-game cosmetic items.
This scope can cover activities like opening NFT boxes, battles for tokens, or high-value digital asset giveaways, even if they do not directly promote gambling. Videos reported for simulating such activities or using terms like “staking” may be removed.
The move comes amid the rise of digital economies within games like Counter-Strike 2, where virtual item exchange and speculation are increasingly common. Projects built on platforms like Ethereum, which feature play-to-earn models, could see their visibility severely limited.
Despite the initial market jitters, transaction volumes for gaming NFTs reportedly remained stable. MANA and SAND volumes reportedly rebounded by 13%, suggesting sustained institutional investor interest in the sector.
Experts advise traders to monitor the correlation between these tokens and the broader crypto market. They suggest YouTube’s actions could foreshadow wider scrutiny from major tech companies, potentially benefiting decentralized finance (DeFi) tokens indirectly.
The conflict highlights the vast power imbalance between giants like YouTube, with over 2.5 billion users, and smaller decentralized platforms like Odysee, which has a few million.
Proponents of decentralization argue these actions underscore the need for open ecosystems where content ownership is not controlled by a single corporation.
Conversely, digital rights organizations warn that a lack of content moderation on decentralized platforms could lead to the spread of misinformation or harmful content.
The ongoing dispute reignites the fundamental question of who ultimately controls digital narratives: centralized corporations or decentralized communities.