• STEPN, web3 lifestyle app, witnessed a colossal crash, plummeting 74% from its all-time high after the China ban. 
  • Analysts have criticized STEPN’s token economy, believing it is in danger of entering a death spiral, similar to play-to-earn games. 
  • The move-to-earn game suddenly announced that mainland China users would be banned due to regulatory policies.

STEPN announced a ban on users in China in response to relevant regulatory policies. In response to STEPN’s rollback on its Chinese users, GMT witnessed a massive drop in its price, posting 8.5% in losses overnight. 

STEPN GMT nosedived 74% from its all-time high

STEPN, the move-to-earn app, suddenly announced a ban on mainland China users, citing regulatory concerns. GMT token declined nearly 9% overnight in response to STEPN’s plan. 

The app’s Twitter handle informed users that,

In order to actively respond to relevant regulatory policies, STEPN will conduct an inventory of software users. If users in mainland China are found, STEPN will stop providing GPS to their accounts at 24:00 on July 15, 2022 (UTC+8) according to the terms of use. and IP location services.

The platform asked users to make their own decisions about handling in-app assets and NFTs if they use their account from an IP location in mainland China. Further details would be shared with users through media announcements and email. 

The move-to-earn app, in which users earn cryptocurrencies based on their movement, as tracked by their smartphones, has remained committed to providing users with a superior experience and apologized for the inconvenience caused. STEPN has refrained from engaging in any business in mainland China since the platform’s establishment. Users are reminded to beware of scams while the platform rolls back its application for users in China. 

STEPN token economy may not be sustainable

Crypto experts have criticized STEPN’s token economy, considering it unsustainable. If the growth of players in STEPN’s economy plateaus, it would be in danger of a collapse, similar to play-to-earn games. 

STEPN’s GMT tokens are available in a limited supply, and a burn mechanism is key to reducing the circulation of both GMT and GST tokens through in-app activities. The STEPN ecosystem runs on a dual-token economy for fundraising and utility. GMT, the naive token, has a limited supply of six billion and can be earned either through token generation events or minting. 

Green Satoshi Tokens (GST), which represent digital sneakers, are the in-game utility tokens, and can be used for purchasing goods in the app. GSTs have an unlimited supply and can be minted through basic movements. 

The STEPN move-to-earn app combines three elements on blockchains, web3, Game-Fi and Social-Fi. After witnessing a spike in its price, GMT suffered a decline. GMT price nosedived as STEPN announced plans to exit Mainland China, declining service to users with IP locations in the area. 

Analysts believe STEPN GMT price could collapse

Crypto analysts have predicted a decline to $0.50. Crispus Nyaga, a leading analyst, argues the four-hour chart shows signs of decline. A bearish pennant pattern has featured in the GMT price chart; this is considered a precursor to a rise in selling pressure. 

GMT price has dropped below the 25-day and 50-day moving averages; Nyaga believes it could drop to an all-time low, hitting the $0.50 level. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP