STEPN Tokens, GMT and GST tokens have plummeted following a regulation by Chinese authorities. This new regulatory action might prompt the app to stop serving players from mainland China.
STEPN to stop providing services Chinese Players
STEPN is restricting services to Chinese players in mainland China. This action by the lifestyle blockchain company has impacted the platform’s tokens – GMT and GST.
A post on the official STEPN Twitter account translated from Mandarin read:
Furthermore, STEPN encouraged users in the restricted region to make their own decisions regarding handling their in-app assets. The announcement via Twitter also added:
“If you expect to log in and use your account from a GPS or IP location in the region for a long period of time, we encourage you to make your own decisions about the handling of in-app assets. During this period, more details will be notified to users through official social media announcements, emails, in-app alerts, etc”.
STEPN has no business in mainland China
The posts also affirmed that STEPN had not engaged in any business in mainland China since launching nor provided download channels to Chinese users. Furthermore, the blockchain lifestyle app maintained that it attaches great importance to compliance obligations. And will abide by the relevant requirements of local regulatory agencies with further warning about scams.
The tweet stated that:
We at STEPN remain committed to providing a better user experience and product compliance. We apologize for the inconvenience and thank you for your understanding! STEPN has not engaged in any business in mainland China since its establishment and has not provided download channels. STEPN has always attached great importance to compliance obligations and always strictly abides by the relevant requirements of local regulatory agencies. We also remind users to beware of scams. STEPN team
About 10 hours after the original Mandarin post, the STEPN team posted and English translation of the announcement on their Discord server.
Possible Reasons Behind the Restriction
It is not clear why the move-to-earn app limited access to users in mainland China. Many crypto-related activities have been prohibited in the region since authorities cracked down on the industry in September 2021. Several crypto exchanges also stopped offering their services to Chinese users following the crackdown also leading. However, a STEPN representative called Jason gave what might be a reason for the decision. In a Twitter Space discussion Friday morning he hinted that STEPN is implicated by the Chinese crypto regulations because part of the company’s technical team is based in China.
STEPN Tokens hard hit by the announcement
STEPN’s tokens GMT and GST have plummeted following the regulatory ban in mainland China. Since the announcement, GMT, the game’s governance token, has fallen more than 20%. While GST, the main token earned via playing the game, has dropped 15% on Solana and 24% on BNB chain. Furthermore the combined value of GMT and GST are now over 75% down from an all-time high on Apr. 28.
The price of STEPN’s NFT sneakers, which are required to play the game was also not spared in the price slump. It has since sunk 21.8% from a floor price of around 13.9 SOL to 10.9 SOL at press time.
STEPN is a multi-chain crypto app that lets users earn valuable tokens by running, walking, or jogging outside. The game soared in popularity through March and April and recently secured a partnership with sportswear maker ASICS to launch a series of collaboration NFT sneakers.
While many early STEPN adopters have made profits through the app, skeptics have begun to question whether the game’s move-to-earn model is sustainable. STEPN’s token economy is often compared to that of play-to-earn progenitor Axie Infinity, which famously experienced a boom-and-bust cycle after the profits from playing the game fell late last year.