The popular movement and the winning game STEPN (GMT odds) has seen incredible volatility in the last hour. Over the past week, GMT-Etons has been trading in a very wide range of $ 0.77 to $ 1.13, with Emer approaching the $ 0.85 level at the time of writing.
Unfortunately for investors, the recent trend of this project has been negative. In the past 24 hours starting at 4 p.m. ET on Tuesday, STEPN was down 9.6%.
The release follows a decision by the STEPN development team last week to introduce a new feature for their game that runs in-app as users navigate the real world. The introduction of Health Streams actually restricts the use of sneakers, which are non-fungible Eton (NFT) used to earn rewards when users train, making this movement and acquisition game more expensive to play.
STEPN’s idea is interesting
Investors who purchase Portion NFT shoes (required to play with the app) can earn gems as redeemable rewards by walking certain distances. This way, you can earn money just by practicing. It’s a positive encouragement if I’ve ever heard of it.
One wonders, however, how sustainable the STEPN model is given the inflationary nature of the rewards that are actually minted on the fly. And this is of great concern for the long-term sustainability of this project. Aside from selling NFT sneakers, there is no real source of income to pay for these sizes.
As a result, the STEPN team decided to require users to update their NFTs daily (replacing old sneakers and buying new ones) or risk becoming ineffective. The goal is to ensure the long-term sustainability of the project.
what happens now
For users who have invested in STEPN NFT and now find their sneakers worn, this news is pretty unpopular. The return on investment that was once good for NFTs may not be as attractive. Consequently, the ultimate impact of this network on cryptocurrency remains to be determined.
Some eton GMT investors may have a positive view of this news, at least in the longer term. The rewards need to be sustainable and it’s nice to see the STEPN team take care of it. Despite this recent news, there are signs that NFT sales are still profitable in the community. As long as there is no dramatic drop, there may be nothing to worry about.
The drop on the surface seems more macroscopic. However, sales of STEPN NFT sneakers will be a key metric that investors interested in this project should keep an eye on (both fiscally and financially) in the future.