STEPN: How China’s ‘regulatory policies’ caused a crash in yet another token

ambcrypto.com:

STEPN, a move-to-earn blockchain project had exploded by a staggering 20,000% after launching earlier this year. In fact, the move-to-earn fitness app also saw native token(s) register strong gains in March and April. However, it has been falling in May.

So what went wrong here?

The growth rate of STEPN users has slowed down since May. The number of new daily users dropped from 18,000 to 13,000, and the number of daily active users stands at around 11,000. According to blockchain analytics firm Santiment, the volume metric showcased a grieving scenario.

Likewise, respective tokens saw a downfall as well.

Source: Dune Analytics

The STEPN’s governance token Green Metaverse Token (GMT), the governance token of the ecosystem and is also down 37% on the day and 78% from all-time highs. Given the depleting scenario, at press time, GMT suffered a fresh 26% correction as ittraded around the $0.93 mark.

Similarly, the other STEPN token, called the Green Satoshi Token (GST), which players earn after walking, jogging and running outdoors with STEPN’s “NFT Sneakers,” saw the same picture. The native sneaker NFTs required to earn GST in-game went down 30% in the past 24 hours and available (floor price) for just 9 SOL on 26 May.

Source: Dune Analytics

Given such decline and the growing bearish sentiments concerning the network, both existing and new users seems to have halted their activities. New daily active users on STEPN havesignificantly declined in May.

Well, here’s a hint- it related to China. Needless to say, a downfall would come into the picture. This is no different. STEPN, on 27 May, announced that it would stop providing GPS services to users within mainland China from 15 July, 2022 due to ‘regulatory policies’.