- In less than a year, STEPN has become one of the most popular cryptocurrencies.
- STEPN is a lifestyle app where users can earn tokens by walking, jogging, or running.
- STEPN is very new and has a low market cap, which can lead to sharp changes in price.
Here's how you can earn crypto just by exercising.
STEPN (GMT) calls itself a “Web 3 lifestyle app” that rewards its users for staying fit. In the past two months, STEPN has increased from $0.15 to $3.21, a whopping 2,000% return. That means a $1,000 investment made two months ago would be worth over $20,000 today.
What is STEPN?
STEPN uses the Solana blockchain and Web 3. Web 3 is the third generation of the internet and considered the next step of the web. Web 3 uses machine-learning technology to develop a smarter and more connected experience for users using websites and apps.
STEPN was created by a fintech studio named Find Satoshi Lab that is based in Australia. The goal is to promote a healthy lifestyle through a new concept called “move-to-earn.” To get started, users download the app (Android or iOS), then connect their crypto wallet to use Solana (SOL) cryptocurrency to buy non-fungible token (NFT) sneakers.
How does it work?
Once the app is connected to the NFT sneakers, users can walk, jog, or run anywhere they want and can earn Green Satoshi Tokens (GST) while doing it. Different sneakers earn GST at different rates. These points are game currency that can be used to upgrade your sneakers, level up, or cash out for real money. The currency earned is based on the number of steps your take. One energy equals five minutes of movement.
After its successful March 2022 launch, STEPN plans to optimize its in-game features and launch on several other chains in the future. The app uses in-game rewards, daily energy allowances, and customized sneakers, to gamify movement and fitness. It believes this will nudge users toward living a healthier lifestyle. The app plans to add a Marathon Mode, with races between 2.5 km and 15 km. Marathon participants will be able to earn rewards with top-ranking runners earning more.
What are the pros of STEPN?
Even though STEPN was founded less than a year ago, it has become one of the most popular cryptos, ranked 55 out of 10,000 cryptocurrencies at the time of this writing. According to CoinMarketCap, STEPN has raised a large $5 million seed round and is backed by some of the biggest crypto venture capital firms.
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STEPN isn’t just a cryptocurrency but also offers utility for investors. It helps promote a healthier lifestyle while earning tokens, and STEPN says it also helps combat climate change by buying Carbon Removal Credits. This offers both a financial and emotional reward to owning STEPN.
In a new update, the pseudonymous analyst known as Guy explained “the GMT token is continuing its upwards trajectory, thanks to listings on Coinbase and Gemini, which has made it accessible to more investors." Guy added, "The exponential adoption of the STEPN app is certainly contributing too.”
STEPN has some other unique features worth noting as well. For example, it runs on a dual-token model. Green Satoshi Token, the utility token users can earn, has an unlimited supply. The other token, called Green Metaverse Token (GMT), is used for governance, and there are only 6 billion of these tokens available. STEPN also has a burn mechanism for GMT and GST tokens that will reduce the circulation over time. This can increase the price of the crypto, incentivizing investors to get involved.
What are the cons of STEPN?
STEPN, like most cryptocurrencies, can be quite volatile. It's just one of more than 18,000 cryptocurrencies around the globe. However, many of those are considered either worthless or inactive. In fact, many of these “dead” cryptocurrencies started off strong but haven’t survived due to low trader interest, low utility, or in some cases, fraud.
STEPN is only two months old and has a very limited track record. Due to the competitive nature of the crypto market, STEPN will have to continue generating strong interest to survive. In addition, the market cap of STEPN is low compared to popular crypto currencies such as Bitcoin and Ethereum. Bitcoin has a market cap of nearly $700 billion, Ethereum $330 billion, but GMT’s market cap is only around $1.5 billion. This can lead to very sharp and unexpected price changes.
What's more, many users have complained the app is difficult to use, with some saying they are unable to get activation codes -- which is needed to log in to the app. Others have also complained that the GPS in the app is not accurate.
Some experts have issued warnings on STEPN as well. For example, Guy stated that GMT has a chance at continuing its parabolic rally, “but faces the heavy downward weight of the broader crypto market dip.” Guy added that if GMT prices were to break support, “GMT could crash by more than 30%.”
As with all cryptocurrencies, it's a good idea to do your homework and be aware of the risks before investing. GMT’s mission to help people live healthier lives while earning tokens can be a popular concept. Since it's a new cryptocurrency, however, be sure to understand both the pros and cons of STEPN before getting your running shoes on.
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