Following an announcement that now seems to have triggered investor reactions, STEPN has now lost about one-third of its total value in under 24 hours. Meanwhile, before the announcement, the token was arguably one of the fastest-growing projects in the crypto market as far as 2022 is concerned.
STEPN Announces Chinese Exile From Its Platform
In a bid to stay compliant with China’s regulatory policies, STEPN has claimed that Chinese investors on the mainland will be banned from its platform.
This means that the web 3.0 lifestyle app with game and social elements, will now be tracking users’ software to determine which users are based in mainland China. Upon discovery, the project will then limit such users’ accounts on July 15, by GPS. However, NFT owners may decide to sell their holdings to gain their full investment.
Meanwhile, STEPN also notes that it does not in any way, encourage its users on what to do with their holdings. That is, they sell or keep their holdings at their own discretion. In addition, the project reiterates that users will be responsible for whatever consequences that may arise from trying to log in using VPNs or any other IP changing tools.
Shortly after the announcement, the GMT token dipped by over 30% in less than 24 hours, as most STEPN users started leaving the project. And as a result of the sell-off, investors from other regions have also now been drawn into the mix.
This means that STEPN has now lost nearly 80% of its value since skyrocketing last month. But its plunging may have been caused by a number of factors, including Coinbase listing, which caused a massive sell-off. Also, there was the inability to sustain its burning mechanism.
At publication, however, STEPN is now trading at $1.10 after a 34% correction that saw it trading at $0.9 in the early hours of today.