GST, GMT Cryptos Plunge as STEPN Bans China-Based Users

  • Investors in STEPN’s Green Metaverse Token (GMT-USD) experienced major declines this morning
  • This is the result of the project banning users in the Chinese market
  • Investors bullish on STEPN’s global aspirations appear to be looking elsewhere for growth
A mobil app icon of STEPN on a screen next to an earbud.
Source: Primakov / Shutterstock

Most investors know that the entire cryptocurrency market is struggling. But for investors in STEPN’s Green Metaverse Token (GMT-USD) and the Green Satoshi Token (GST-USD), it’s been a devastating few days. The GMT crypto has slid from $1.40 on Tuesday to below $1.

STEPN announced yesterday that this project will effectively ban user gameplay in China. This move is expected to take effect in mid-July. It seems investors in GMT and GST are already dreading this move.

That’s partially because China is a massive market STEPN was relying on for growth. Although STEPN says it has never been in business in China, it’s clear that investors were banking on its global aspirations.

Let’s dive further into why this is a big deal for STEPN investors.

Why Is the GMT Crypto Falling So Hard?

China is a big market for, well, everything. In the crypto world, various projects have managed to fly under the radar when it comes to Chinese regulation. Despite bans on crypto mining and crypto in general, it’s true that some projects have been able to navigate a legal grey area. For instance, new reports suggest that despite bans on crypto mining, underground efforts have made China a global mining power again.

However, STEPN’s move away from China appears to indicate that the move-to-earn project isn’t willing to risk it. This makes sense. Getting on the wrong side of regulation is something that could be even worse for investors.

For now though, investors are focusing on the negatives.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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