App that allows you to move to earn money GMT, STEPN’s native token, fell dramatically on Friday after the company abruptly announced its exit from China.
GMT dropped 37% in minutes following the announcement and is presently trading at $0.8673, down 34% in the last 24 hours.
GMT fell to its lowest level in two months as a result of the drop, wiping out much of the token’s remarkable gains from April. GMT’s popularity soared after a surge in April, temporarily placing it among the top-50 cryptocurrencies.
However, considering China’s vast potential userbase, the program’s removal from the country could prove to be a major roadblock.
GST, STEPN’s other token, is down 24% in the last 24 hours to $1.55. The slump also resulted in massive liquidations in GMT futures trading, with a total of $23 million sold in the last 24 hours, setting a new high.
STEPN said on Twitter that starting July 15, it will no longer provide GPS services to users in mainland China. “Relevant regulatory agencies” prompted the move.
The app will be effectively worthless in China because GPS is a key feature of the program, which pays users for moving around.
The action is most likely related to the Chinese government’s examination of crypto. Given that STEPN pays users in cryptocurrency for using the program, it is likely to draw regulatory scrutiny.