Solana-based run-to-earn game STEPN will cease gaming operations in China in mid-July, the company announced Thursday, sending its GMT token plummeting as markets digested the news.
- STEPN said it will stop offering GPS services to users whose IP address or GPS location shows them in China starting July 15. Without GPS services, players who own the member-like show NFT will not be able to earn tokens for their steps.
- The GMT reward token has dropped 38% in the last 24 hours, according to CoinGecko. STEPN NFT shoes were trading at about 8.5 SOL at press time on Magic Eden, 3.5 SOL below Wednesday's price.
- "STEPN has always attached great importance to compliance obligations and strictly adheres to the relevant requirements of local regulatory authorities," the company said in a tweet, without naming a specific policy. It further stated that STEPN has never done business in China.
- China's crypto regulatory landscape is vague, but scrutiny of NFTs by Chinese banking institutions has increased. Considering that users must purchase NFT sneakers to participate in the game, STEPN could be the next target for a crackdown.
STEPN did not immediately comment.