In China, the 'Move-to-Earn' Token GMT is spiraling out of control

Stepn, a Solana-based "move-to-earn" game, announced Thursday that it will effectively ban gameplay in China starting in mid-July, sending its GMT token soaring as markets digested the news.

On July 15, Stepn will stop providing GPS services to users whose IP address or GPS location indicates that they are in China. Players who own the membership-like shoe non-fungible token (NFT) will be unable to earn tokens for their steps if GPS services are not available.

According to CoinGecko, the price of GMT has dropped 38% in the last 24 hours. At press time, Stepn NFT shoes were selling for around 8.5 SOL on Magic Eden, 3.5 SOL less than Wednesday's price.

"STEPN has always attached great importance to compliance obligations and always strictly abides by the relevant requirements of local regulatory agencies," the company said in a tweet, without elaborating. It went on to say that Stepn has never done business in China.

However, China's crypto regulatory landscape is hazy, and Chinese banking associations are increasingly scrutinizing NFTs. Due to the fact that users must purchase NFT sneakers in order to play the game, Stepn could be the next target for a crackdown.

Stepn did not respond to a request for comment.

By fLEXI tEAM