State derecognition, defined as the withdrawal of recognition from a putative state, has been more impactful as a diplomatic subculture in the last decades than is often assumed. Recent practice suggests that when states engage in derecognition, they do not mechanically assess whether a state no longer fulfils the traditional criteria for statehood, but rather employ derecognition as a tool of foreign policy, tailored to enhance their own economic and geopolitical interests. The bargaining dynamics of derecognition and “rental recognition” policies adopted by a range of smaller states create a precarious hostage-like situation for the targeted entities who helplessly watch their international status being traded in a recognition market. As the success of some claims to statehood risks beings reduced to a matter of pricing, a process of commodification emerges: state recognition is granted to the “highest bidder” regardless of factual reality or legal considerations. With this backdrop, the present paper seeks to clarify how international law conceptualizes derecognition and its hypotheses of legality, offering an overview of contemporary events of derecognition and expedient shifts in recognition to clarify the role and deficiencies of international law as it stands before the emerging phenomenon of “statehood commodification”