What is StepN? The new fad that allows you to earn crypto by running and walking is now blocking Chinese users | STEPN

StepN, a new game that rewards people for walking or running, saw the value of its cryptocurrency plummet after it decided to disconnect its Chinese players.

The move follows similar moves by Binance and Huobi after Chinese authorities declared any activity related to digital assets illegal.

Thursday, StepN announced on Twitter that it would disconnect users with a GPS signal in mainland China to ensure it follows Beijing’s rules. This caused its native governance token called Green Metaverse Token (GMT) to drop 14% to $1.01 over the 24-month period, according to CoinGecko.

What is StepN and how do I use it?

Developed by FindSatoshi Lab Ltd, a reference to the anonymous creator of Bitcoin, the application aims to be the first crypto fitness game for smartphone users. After taking fourth place at the Solana Ignition hackathon last year, it is now in public beta and available for download on Android and Apple devices.

StepN aims to inspire millions of people to adopt healthier lifestyles, fight climate change and connect the public with Web 3.0the company explains on its official website.

Gains are based on the amount of movement measured by GPS tracking performed in five minute increments corresponding to a unit of energy, which replenishes itself over time when fully depleted.

How much do StepN NFT sneakers cost?

Players must first spend Solana Tokens (SOL) to purchase an NFT in the form of three different types of digital shoes.

These have different characteristics that make them more or less valuable. For example, some sneakers are more efficient than others because they yield more in-game currency called Green Satoshi Tokens (TPS), per unit of energy consumed.

stepn sneakers nft

Some are also more durable, meaning the user has to spend less on “to repairover time to avoid loss of earning capacity. Sneakers, whether for walkers, joggers or runners, can also be upgraded by spending tokens.

On the NFT Magic Eden marketplace, the average price of StepN sneakers was the equivalent of about $400 in Solana. On Binance, some “STEPN x ASICS NFT Sneakerswere priced over $100,000, but most were much cheaper.

When no longer needed, the sneakers can be resold or rented out to other players who may not be able to afford them, in exchange for a split of their winnings.

But don’t try to tie your phone to your dog or cheat as the game has penalties for what it calls “moonwalking

Questions about sustainability

Backed by big names in the crypto venture capital space such as Sequoia Capital, Binance and Alameda Research, StepN claims to have some 580,000 players.

The company made a profit of $20 million in the first quarter, co-founder Yawn Rong told the South China Morning Post in April.

However, the durability of these types of games”play to earn‘ raises serious questions.

When player base growth begins to level off, the business model can backfire. As less and less people pay to buy in-game currency to buy NFTs, and as more and more people pay out, the value and motivation of the game diminishes over time.

This is because there is no motivation to engage with the app once it is no longer a form of income, and as with any game where you have to play to win, players move on.

The most famous example, a game called Axie Infinity, developed by Sky Mavis, saw player interest plummet.

As a result, the value of its Smooth Love Potion (SLP) gaming token and Axie Infinity Shards (AXS) governance token had already started to decline before taking a dip in March after several glitches and hacking.

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