STEPN, a well-known game of move-to-earn, announced Thursday that it will cease offering IP-related services to users from China. This was required by authorities. The ban will be in effect from July 15th.
Deadline for July 15th
Social-fi app Solana, which is built on Android, rewards users for running, walking, and jogging. Tracking users’ geographic position is an essential feature that enables the platform to figure out their level of participation. To participate in the game, players must carry their smartphones while exercising, and allow the platform to know their GPS.
In compliance with regulatory requirements – STEPN said via a thread of tweets on Thursday – users whose IP and GPS addresses come from mainland China will not be able to use its service since July 15th. Web3 advised Chinese users to begin managing in-app assets accordingly.
Users must first purchase NFTs to earn rewards in the game. Prices are in SOL and BNB. Users will need to connect the app with their crypto wallets. The thread didn’t specify what would happen after the deadline to their in-app assets.
The team clarified that the company had never created any business or provided any method for people to download its app within the territory. Jerry H, the founder of STEPN, noted that Chinese users only account for 5% of the game’s total user base, suggesting that the ban would not significantly impact its business.
GMT Drops Under Criticism From the Community
STEPN uses a dual-token model similar to many P2E gaming platforms like the popular Axie Infinity. GMT is the governance/unity token. The supply is limited to 6 billion units. The token price plunged nearly 40% to $0.83 after the announcement. It had recovered to $0.95 by the time this article was written. A NFT sneaker’s floor price dropped from 13 SOL at the time to approximately 8 SOL.
The wild price action was accompanied by criticism from the community. One user posted a comment in the Twitter comments. tweeted a screenshot on the platform’s Discord channel, showing that members that chose Chinese as their language have greatly outnumbered users from other countries. One user complained about the abruptness of the announcement and the volatile nature of its policies.