Hold onto your hats, crypto enthusiasts! The world of move-to-earn just got a whole lot more turbulent. STEPN, the popular app that rewards you for walking, jogging, or running with its GMT token, has announced a major shake-up: they’re pulling out of China. And the crypto market reacted swiftly and sharply.
GMT Token Takes a Nosedive: What Happened?
Just when things seemed to be cruising along in the crypto world, STEPN dropped a bombshell. The announcement of their impending exit from China sent shockwaves through the market, causing GMT, STEPN’s governance token, to experience a dramatic plunge.
In a matter of minutes on Friday, GMT’s price plummeted by a staggering 37%. Currently trading around $0.86, it’s down 34% in the last 24 hours alone. Ouch! This sudden drop has pushed GMT to its lowest point in two months, effectively erasing a significant chunk of the impressive gains it made back in April when it briefly became a top-50 cryptocurrency.
Why is China such a big deal? Well, think about it – China boasts a massive potential user base. Losing access to this market could be a significant blow to STEPN’s growth trajectory.
It’s not just GMT feeling the heat. GST, STEPN’s in-game token, is also down, currently sitting at $1.55, a 24% decrease in the last 24 hours.
The market volatility didn’t stop there. This price crash triggered a wave of liquidations in GMT futures trading. A whopping $23 million worth of GMT futures contracts were liquidated in just 24 hours, marking a new high for liquidations in this token. Talk about a domino effect!
STEPN Says Goodbye to China: Regulatory Pressure to Blame?
So, why is STEPN packing its bags and leaving China? According to their official Twitter announcement, starting July 15th, STEPN will no longer provide GPS services to users in mainland China. They cited “compliance with relevant Chinese government policies” as the reason behind this significant decision. Essentially, “responsible regulatory agencies” are prompting this move.
Let’s break down why this is such a big deal for STEPN users in China:
- GPS is Key: STEPN relies heavily on GPS to track user movement and verify their activity for earning rewards.
- Functionality Severely Limited: Without GPS services, the STEPN app becomes practically unusable in China. It’s like having a fancy car with no fuel!
- Regulatory Scrutiny: China has been tightening its grip on cryptocurrency activities for some time now. STEPN, which rewards users with crypto for physical activity, likely falls under this regulatory radar.
Given China’s stringent stance on cryptocurrencies, it’s highly probable that increased regulatory scrutiny is the primary driver behind STEPN’s exit. The Chinese government has been actively examining and cracking down on various crypto-related activities, and move-to-earn platforms like STEPN, which involve cryptocurrency rewards, are likely to be under close watch.
This situation underscores the ever-evolving regulatory landscape of the crypto world. Projects operating in or targeting regions with strict crypto regulations must navigate these complexities carefully. STEPN’s decision, while impactful, highlights the challenges and necessary adaptations within the global cryptocurrency market.
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In Conclusion:
STEPN’s departure from China serves as a stark reminder of the regulatory headwinds facing the crypto industry. While move-to-earn platforms like STEPN have shown incredible potential and garnered significant user interest, they are not immune to global regulatory pressures. The price drop of GMT and GST reflects market concerns about STEPN’s future growth and accessibility. As the crypto landscape continues to mature, projects must prioritize regulatory compliance and adapt to evolving global policies to ensure long-term sustainability. Keep a close eye on how STEPN navigates this challenge and what it means for the future of move-to-earn in the crypto space!
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