STEPN Dealing with Misinformation
Online rumors regarding potential layoffs at STEPN, the Solana-based move-to-earn fitness application, have been met with a strong denial from the company. Following claims that over 100 contract workers would be let go amid the crypto bear market, STEPN issued an official statement clarifying the situation and addressing the criticisms head-on.
Background of the Rumors
The speculation began when noted crypto reporter Colin Wu first alleged that moderators and ambassadors were among the staff likely to be affected, suggesting that the company was reducing its investment in STEPN and shifting focus towards projects managed by its parent company, Find Satoshi Lab (FSL).
Official Response
In an interview with Cointelegraph, a representative from STEPN refuted the claims, stating, “We deny the rumor that STEPN has been laying off staff due to the bear market. We pride ourselves in being transparent with our community and we are choosing to address these rumors head-on to avoid any further speculation on falsehoods.” They clarified that the company had parted ways with volunteer moderators who had become inactive but is actively hiring across various roles to continue its growth and evolution.
STEPN’s Journey and Challenges
Founded in 2021, STEPN allows users to purchase nonfungible token (NFT) sneakers that can be used to walk or run in the real world, earning Green Satoshi Tokens (GST) in return. The initiative initially gained significant traction, with its governance token, Green Metaverse Token (GMT), reaching an all-time high of $4.11 in April 2022. However, with recent financial pressures and the overall downturn in the crypto market, GMT has since plummeted over 85% to $0.61, and GST has dropped over 99% to $0.026.
Impact on User Engagement
User engagement has also mirrored the declining token prices, as daily active users surged to a peak of 105,257 on June 26 before dwindling to under 6,000 in September. Recent adjustments included blocking users from mainland China and addressing security concerns that stemmed from a DDoS attack in June.
Concerns Over Ecosystem Structure
Crypto researcher Lucia Kim pointed out that the structure of STEPN’s reward mechanism may have contributed to the decline. She explained that users are incentivized to sell their tokens to claim rewards, which increases token supply and subsequently leads to declining prices. Kim emphasizes that the ecosystem suffers when users sell excess tokens, impacting overall market health.
Future Outlook and Community Engagement
The STEPN team has hinted at upcoming changes aimed at adding value to GMT and the FSL ecosystem. Co-founder Yawn Rong expressed this commitment in an open letter to the community on October 10, stating that they are transitioning resources into the next stage of FSL’s development. Although specifics were not disclosed, Rong encouraged the community to stay tuned, assuring them that significant announcements lay ahead.
Conclusion
As STEPN navigates through rumors and market challenges, its commitment to transparency with its community and exploration of new opportunities signifies a proactive approach toward weathering current conditions. The potential for evolution within the platform offers hope for more engagement as they continue to adapt in the dynamic landscape of cryptocurrency and decentralized finance.
