Anyone familiar with the cryptocurrency market has heard about the new move-to-earn application called STEPN. The project allows the users to install the application and use it as a regular steps counter, in addition to allowing them to earn tokens for the number of steps that they have completed. However, while everything else was going great for the project, the management of STEPN made a misfire.
The company announced recently that it is planning to ban its services to consumers in China. Shortly after the announcement was made public, STEPN native tokens GMT and GST experienced a sharp decline in market value. The Lifestyle application announced severe ties with its Chinese consumers yesterday, and the two main tokens of the project have already crashed.
STEPN Tries to Comply with Regulatory Guidelines
Explaining their side on the matter, the management of STEPN post asocial media message on their Twitter account in Mandarin. The tweet reads that the management is retracting its services keeping in view the legislative guidelines of mainland China. The company tweet also claimed that any users hailing from the region would not be able to access GPS options on their accounts starting from July 15th.
The Twitter account kept posting more updates on the matter that advised its users from China to think about transferring or selling their in-app assets before the deadline.
The application developers further explained that they are not authorized to provide any services in China, including download channels. The tweets by STEPN waived the involvement of trying to solicit business in Mainland China and declared that it has always planned to comply with the legislative guidelines of the country.
STEPN has also posted the English translation of all their tweets in English on their Discord server. However, many users are still questioning the real intention and reason for the lifestyle application for opting out of the Chinese territory. It is worth noting that since September last year Chinese government has imposed a strict and comprehensive embargo on all activities relating to cryptocurrencies.
Since the announcement yesterday, GMT and GST tokens have plummeted by 75%. Meanwhile, the trading volume for the tokens dropped 20% on average on Solana and BNB chains. STEPN signed a deal with ASICS to launch a line of limited edition NFT sneakers. The application is often compared with Axie Infinity which is a play-to-earn program that also suffered from steep highs and lows last year.