Running game StepN blocks Chinese users

According to the above announcement Twitter Over the weekend, StepN will “start checking and wiping” users in the world’s most populous country, based on GPS location and IP address. The discontinuance begins on July 15, and the app representative advises players to “make arrangements” before the above date.

StepN did not give a specific reason for the move. Follow SCMP, which may be due to the cryptocurrency ban in the country. Recently, the Central Bank of China continued to warn that any foreign cryptocurrency exchange that provides services to Chinese citizens is engaging in illegal financial activities.

StepN is the app Run for money (move to earn – M2E) was developed by Satoshi Lab and launched late last year. The application is built on the Solana blockchain ecosystem, founded by two Chinese-born entrepreneurs, Jerry Huang and Yawn Rong, currently based in Australia. In the introduction, the development team said that users who own NFT shoes can walk to earn rewards in tokens, as well as use them to buy, sell and upgrade NFT shoe items.

To join StepN, users need to purchase a virtual NFT shoe in the app and start running in real life. The amount of money earned each day depends on the type of shoes owned and mobility skills. To increase the amount of money, users can level up, repair shoes or use gems to upgrade attributes. On average, new players need 1,000 USD in exchange value to be able to buy shoes and start earning.

According to a sharing by Rong in April with SCMP, the company made $20 million in the first quarter of the year, largely from transaction fees and in-game NFT purchases. According to estimates on Dune Analytics, StepN currently has more than 580,000 users.

Immediately after the announcement of blocking Chinese users, StepN’s governance token GMT dropped 38% from 1.2 USD per coin to 0.8 USD per coin, then back to more than 1 USD. Compared to the peak of $ 3.8 at the end of April, GMT has dropped three times in value.

M2E is a new trend that attracts the attention of the following blockchain community play to earn (P2E – gaming for money) by combining elements of GameFi, SocialFi and NFT. Many M2E projects are springing up like mushrooms, even with metamorphosis to entice users.

Many StepN participants expect the application to be a Axie Infinity new of the M2E model. The app not only promotes running, but also spawns many new business models. For example, some even spend money to buy shoes, then hire people to run. Those who do not have enough money for the initial investment can also join the application by running a rental with a fee of several tens of USD per day.

China started going strong with cryptocurrencies last year. In May 2021, three state-backed financial associations jointly warned of the risks from “volatile” cryptocurrencies. China then implemented a zero-tolerance crackdown on Bitcoin mining and trading.

At the end of September 2021, the Central Bank of China warned that anyone in China involved in crypto activities could be investigated. The National Development and Reform Commission (NDRC) also added Bitcoin and other cryptocurrencies mining to its blacklist of industrial activities that should be eliminated in the country. These harsh measures then triggered a series of compliance moves by crypto-related companies.

Bao Lam