The move-to-earn app STEPN, announced the company will stop providing GPS services to users in China in order to avoid breaking any local laws
In a surprising announcement, the move-to-earn sector leader STEPN announced that they will stop supporting users from China soon. Although the company will not remove any user accounts from China, the move certainly will not help increase their user growth rate. STEPN has also recently seen a decrease in new daily users. What led STEPN to this decision?
Why STEPN will stop supporting users from China
Starting from July 15th at 24:00 UTC+8, STEPN will stop providing any GPS and IP-based geolocation services to users from China. According to STEPN, the decision was made as part of the firm’s compliance with the Chinese Law on geographic data restrictions in China.
Under the law itself, only entities with special authorization from The State Council in China can perform surveying and mapping work within the country. In its Twitter post, STEPN made it clear that the team has never planned to start its operations in China. Thus, to avoid breaking any local laws, the app will cease to support users from China soon.
Many STEPN users in China certainly find it disappointing about this decision. However, some users felt grateful as they had hit their fitness goals while using the app. One user even commented that working out is meant to be fun in nature. So, STEPN or not, staying healthy is way more important than anything else.
STEPN’s GMT token crashes on the news
STEPN’s governance token $GMT crashed 38% after the announcement, but the token price has slightly recovered since the crash. As of writing, $GMT is trading at $1.06. However, the token reached an all-time high of $4.50 at the end of April, so it is still down significantly in the past month.
Given that STEPN is about to lose a huge chunk of its users from China, it is unclear how the app will survive in the upcoming months. Of particular note, the app depends heavily on new users to burn $GST and $GMT tokens to level up their Sneakers. At the end of the day, users should just invest what they can afford to lose in any P2E games.