M2E game Stepn to limit services in China, sending its token GMT tumbling

Solana-based move-to-earn game Stepn announced a withdrawal from China, effective in mid-July. Its in-game currency GMT has fallen 38% over the past day, at US$ 0.8673. Meanwhile, its other token, GST, is down 24% at US$ 1.55 during the same period. The plunge has caused mass liquidations in GMT futures trading, with a record US$ 23 million liquidated in the same period. 

‘In order to actively respond to relevant regulatory policies, STEPN will conduct an inventory of software users. If users in mainland China are found, STEPN will stop providing GPS to their accounts at 24:00 on July 15, 2022 (UTC+8) according to the terms of use. and IP location services.’ wrote Stepn. The move was announced in a Twitter thread, in which Stepn wrote that it will stop providing GPS services to users whose IP address or GPS location shows they are in China on July 15. The GPS services support players’ membership ‘shoe’  NFT, without it, users will not be able to earn the tokens for moving around, rendering the app effectively unusable in China. 

‘STEPN has always attached great importance to compliance obligations and always strictly abides by the relevant requirements of local regulatory agencies,’ wrote the company, without citing a specific policy. The company further claims that it has not ‘engaged in any business in mainland China since its establishment.’

In 2021, China has effectively banned cryptocurrencies and announced harsh fines and jail sentencing for the sector.

Stepn offers multiple in-game tokens, including GST, GMT, SOL and BNB. Users can buy in-game NFTs using SOL or BNB tokens as the game operates on both chains. 

GST is a utility token that is used to reward users for their steps and upgrading NFTs in the game. GMT is the governance token of the StepN ecosystem and is down 38% and 78% from all-time-highs. The market cap of GMT now sits below US$ 400 million and ranks 84 on the cryptocurrency list. 

Photo: Cryptoslate