The crypto bear market is doing damage. If the big players manage to pull out of the game and continue their development, this is not necessarily the case for new entrants. For example, we have just learned that the STEPN application is facing major difficulties. A look back at this application from the move-to-earn domain, which nevertheless had a meteoric start.
What is move-to-earn?
The Stepn application is part of the domain called “move-to-earn”. If you follow crypto, surely you are already familiar with the concept of the « play-to-earn » ou P2E. Indeed, as its name suggests, the purpose of a P2E is to earn money while having fun. There is worse as a concept, is not it?! P2E applications run on the blockchain (often Ethereum) and involve NFTs. Most often, these applications have their own token. A well-known application of P2E is for example Axie Infinity and its token AXS. A sign of the success encountered by the field of P2E gameyou should know that the AXS token ranks 55th in terms of market capitalization at present.
Move-to-earn is a variant of P2E. Again, its name says a lot about its purpose. It is “move” to earn money. These applications operate on the same principle as those of P2E, namely that they involve a blockchain, NFT, one (or more) token(s), etc. These applications encourage you to be mobile by earning you rewards. This is the principle of the Stepn application.
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The STEPN application in difficulty
Since its launch, the Stepn application has been a great success. But it looks like the wheel is starting to turn for Stepn.
What is the STEPN move-to-earn app?
The Stepn game was launched in 2021. The company in charge of its development is Find Satoshi Lab and is located in Australia. The Stepn application is part of the recent field of move-to-earn as explained above. What is NFT Stepn Game? In fact, the game Stepn pays users for walking or running ! For this, players must first equip themselves by buying a pair of basketball on the application. These shoes are actually NFTs or non-fungible tokens. Interestingly enough, the Stepn game does not run on the industry-leading Ethereum blockchain, but rather on the competing blockchain. Solana.
Depending on their “mobility”, the players thus touch rewards. Users are encouraged to keep the money earned in order to improve their profile. For example, they can use the money earned to buy a better pair of sneakers. By doing so, they will be more successful and can increase their income on the app even more.
Exposed like this, we quickly understand the “addictive” potential of the Stepn game and therefore also its dangers. On the web, some people do not hesitate to boast of enormous gains made on Stepn. But as often, the question with this kind of application is: what happens when a user withdraws all his winnings? Thus, rightly or wrongly, the question of whether Stepn was a Ponzi scheme often came back on the table.
The price of STEPN tokens
The Stepn game is based on two tokens. The token Green Metaverse Token (GMT) (or STEPN) is a governance token. The other token is the Green Satoshi Token (GST) which is used to remunerate users who walk or run. These two tokens saw their price soar shortly after the launch of the game.
In April 2021, the price of the GST token crossed the €8 mark while the price of the GMT token came very close to €4. What about now? It is clear that the prices of these two tokens have plunged very sharply:
- Green Satoshi Token (GST) : 0,02 € ;
- STEPN (GMT) : 0,58 €.
In terms of percentage, this means that the price of the STEPN token has fallen by 85% since its peak in April 2021. The price of the GST token is even worse with a drop of more than 99%!
STEPN goes on a diet
After a fanfare start, it is clear that Stepn is starting to suffer from the crypto environment. The company has just announced the dismissal of 100 people. In particular, moderators and ambassadors will be part of the wagon.
“The famous blockchain game STEPN started laying off people during the bear market. He will mainly fire more than 100 moderators, ambassadors, etc. and it will reduce investments in the application and some developments have been pushed back. » Colin Wu, crypto reporter
This slimming treatment follows the unfavorable crypto environment. Also, the indicators regarding the Stepn app are not good. As explained above, the price of the two Stepn tokens fell very sharply. Moreover, the number of users on the application has also decreased significantly. For example, at the height of its success at the end of June 2021, Stepn had almost 105,000 users according to the data from Dune Analytics. Then in September, the app saw less than 6,000 users! In October, the number of users increased again, settling at around 11,000, a far cry from its June peaks. Unsurprisingly, this had effects on the finances of Stepn who was forced to reduce the sails.
The reaction of the founder of the application Stepn
Faced with this worrying situation, the co-founder of Stepn Yawn Rong took to Twitter in an open letter. On October 10, he was reassuring by mentioning “upcoming changes” in order to “continue to add value to GMT”. In the thread he specifically listed three main problems on which the developers are working “hard”:
- Provide utility for NFTs;
- Establish a web3 identity with social components;
- Remove the barrier to enter web3 through education in order to welcome the next billion users.
“Over the next few weeks, we will shift gears as we evolve our vision. During this transition period, we will not leave you in the dark. We encourage you to turn on notifications so you don’t miss what’s next. Yawn Rong, co-founder of Stepn