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The only danger is that the infromation is stored in text format and is not encrypted.
There is absolutely no login storage, nothing is saved except tbe program having permission as a device to login to your account, and if you don't feel safe about it you can just de-auth all devices.
So let's have a quick rundown so nobody gets falsified information:
What happens here, is that the program itself sends a flag of 3847 to your online status, which in turn, will enable you use of the holiday background and border which enabled users that won the contest to have it in the first place, which can be seen here:
"persona_state": state,
"persona_state_flags": 3847, // This makes it yellow
"player_name": name
Other than that, it keeps your account logged in and does nothing beyond that, the other source material is only for compiling
If any mods choose to remove my post for whatever reason, and i don't see why, at least address the problem correctly; valve is very much aware of this exploit but it's best to keep the steam community members informed.
Beyond this, this is only TEMPORARY as it's telling your game client to send a status of 3847 rather than 1 - 4.
However, I'd like to address this too:
You have a VERY high chance of screwing up your account if they ever include a fix for the update, the most they'd do is probably remove the status from being set and you can't do it anymore, but the conciciences, depending on what valve does, can be worse if you decide to leave it open while an update goes on.
I highly advise NOT using this.
I mean really to me, its not that much diffrent than idling programs that create sessions to say that you are playing a game when you are not. Play time hours change, cards drop and no one says a word, for that because its free advertising, and money in the market for cards.
Or idling a fake non Steam game with a nasty message as the title.
There are lots of Steam people already doing gold, many old and new Steam User Groups made for the occasion of sporting the gold.
Just watch and see what happens. So far nothing. We will know when we see "I was banned for gold "or "how do I contact support to fix my broken profile that was using gold."
The gold name seems rather harmless to me.
/popcorn
I actually think being able to change the colour ( To an extent ) would be a cool feature, it kind of makes each profile seem a bit more different from the last.
I don't really mind what Valve does as long as it doesn't damage anything.
The problem is that colored names and borders are used to mark mods, devs and publishers on the steam forums. And you can be sure that there are users who would try to scam other users by pretending to be something they are not.
this is so not fair against loyal members :(
You knew full well what could happen if something does actually happen. Are you going to write to support to thank them for doing a good job?
If your account gets punished in some way, support will tell you it's your responsibility.
Several mods have advised against using this "cool feature", and even they admit they don't know yet what kind of punishment people who have used/are using it should expect.
Next time, try reading the SSA you agreed to when you registered the account, instead of reading how to execute shady .exe files on your computer.