Well-known move-to-earn game STEPN announced last Thursday that it will stop offering IP and GPS-related services to users from mainland China, as required by the authorities. The new ban will come into effect on July 15th.
Following the tragedy that followed Terra LUNA and its eventual demise, regulators around the world have become skeptical of cryptocurrency projects, and a crackdown is underway in some regions.
Main Reason: China Ban
On May 26, STEPN, a move-to-earn blockchain project, announced via a series of tweets that in order for its activities to comply with Chinese regulatory policies, users in mainland China will be unable to use STEPN’s services.
According to the terms of use and IP location services, the platform stated that it would stop providing GPS to their accounts on July 15th.
Users in the affected region who intend to log in and use their accounts from a GPS or IP location within mainland China are expected to make their own decisions about how to handle in-app assets, according to the company.
Following this announcement, the price of STEPN’s governance token, Green Metaverse Token (GMT), plummeted from $1.24 to $0.83 per GMT token.
The team clarified that it had never launched a business or provided any means for people in the jurisdiction to download the app.
According to Jerry H, the founder of STEPN, Chinese users account for only 5% of the game’s total user base, implying that the ban will have little impact on the company’s business.
A downward spiral
After experiencing a 10% price increase during intraday trading on May 30, the GMT token appeared to have lost these gains at the time of publication. With a 5% drop in price in the last 24 hours, “runners” appear to be taking profits following the token’s temporary spike on May 30.
At the time of publication, the price of a GMT token was $1.07, which was 70% less than its all-time high of $4.11.
Everything crumbles.
On-chain analysis revealed that the GMT token had a poor performance in the last 24 hours, with key metrics appearing to have dropped.
At the time of publication, the total number of NFTs traded was 18,044. This has dropped by 75% in the last 24 hours, indicating a growing lack of interest in “runners” once they cash out their earnings on the platform. As a result, total NFTs trade volume fell by 65 percent, from $23.8 million on 30 May to $8.25 million on 31 May.
On the social front, the token has also declined in the last 24 hours. The social dominance decreased by 69%. In addition, the social volume dropped by 95%.
Play-to-earn gaming models are increasingly infiltrating the Web3 ecosystem. With the launch of a Sleep-to-Earn platform, it is unclear how this gaming model will be used in the future.
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Stepn, GMT and Why it’s falling was originally published in BitYard Token Insight on Medium, where people are continuing the conversation by highlighting and responding to this story.
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