Despite massive amount of app installs and impressive number of holders, STEPN’s fundamentals remain weak, experts believe
One of the fastest growing projects and tokens in the cryptocurrency market in 2022, STEPN, quickly lost a third of its value in less than 24 hours after an announcement that scared off a large portion of investors.
According to the official Twitter account of STEPN, Chinese investors and “walkers” can no longer use the products or they will be banned from the platform. The decision to limit Chinese players was tied to regulatory issues that STEPN has faced in China.
STEPN will track user software to see which users are based in mainland China. The project will limit their accounts, via GPS, on July 15. NFT owners can sell their holdings to recoup their entire investment.
STEPN does not encourage users to sell or keep their holdings and recommends that users make the best decisions for themselves. The project does not claim responsibility if users are planning to log in using VPNs or changing their IP-addresses with the help of other tools.
The GMT token has lost more than 30% of its value in the last 24 hours as most STEPN users leave the project. The sale of GMT added to growing fears from investors in other jurisdictions that could impose sanctions on the project.
Since reaching the top back in April, STEPN lost almost 80% of its value. Industry experts explain such market performance by a number of factors, including the overvaluation of the project, Coinbase listing—which historically causes a massive sell-off and the inability of the burning mechanism to fuel the rally we saw at the beginning/middle of April.
At press time, STEPN is trading at $0.9 after a 34% correction.
