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After two impromptu AMA sessions, a major crackdown on Chinese users, causing a comprehensive collapse in the value of STEPN.

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After two impromptu AMA sessions, a major crackdown on Chinese users, causing a comprehensive collapse in the value of STEPN.

The popular step-and-earn blockchain game, STEPN, made a grand entrance on the BNB chain last month with a collaborative Asics event, airdropping 10,000 pairs of BNB-themed shoes to early users, greatly promoting the development of the BNB chain. However, due to the differences in ecosystems, it seems to have caused migration and confrontation between players on the two chains. After holding two impromptu AMA sessions to explain the operational direction and stabilize the market, the official team unexpectedly released an announcement that shook the entire community that same evening.

Differences Between Solana and BNB Chain

Since STEPN started building its ecosystem on the BNB chain, the prices of shoes and GST have consistently been 3 to 4 times higher on Solana. Although the barrier to entry is higher, the profits are also relatively larger, leading some profit-seeking Solana players to shift to the BNB chain.

However, the process of moving to a new chain is bound to bring selling pressure to the Solana shoe market, causing a drop in shoe prices that also affects the price of GST, thus sparking dissatisfaction among Solana players.

STEPN Held Two AMA Sessions: BNB VersionInterest Rate Differential as Market Mechanism

In response to this phenomenon, the official team provided an explanation during an impromptu AMA session yesterday at noon on the 26th. Below are the key points summarized by the Twitter account Lin Jiujiu Play Chain Games.

The official team stated that the two chains are mutually beneficial, and the energy sharing is actually a positive for Solana. They believe that the claim that the BNB chain is "sucking blood" from Solana is baseless. As for the unstable GST prices on Solana and the BNB chain, with the former falling and the latter surging, the official team explained that this is a market mechanism and they will not intervene.

Furthermore, in the evening of the 26th, the official team held a second impromptu AMA session, sharing some key development points with the community.

The team announced that from March to May, a total of 120 million GMT tokens were burned, and as GMT can be earned through sports, the prices of shoes on Solana will gradually increase. They will also introduce more applications for GMT in the future. Additionally, the team mentioned that they will launch a DEX next month, and scrolls can be obtained in game treasure chests in the future.

The statements above and the upcoming new features are generally seen as positive by the community and are expected to stabilize the market.

Sudden Announcement of Chinese User Clearout

However, shortly after the conclusion of these two AMA sessions, the official team unexpectedly announced a significant update. STEPN's Twitter account announced early this morning on the 27th that they will be conducting a clearance of Chinese users, citing compliance with relevant regulatory policies. After July 15th, if Chinese users are found using the platform, GPS and IP location services will be discontinued.

Regarding this major announcement, STEPN encouraged users in the region to make decisions about their in-app assets on their own, also stating that they have never conducted any business or downloads in China since their inception. The team also mentioned that they only have 5% of Chinese users.

This announcement triggered a strong selling wave in the market, severely impacting GMT, GST, and shoe prices, with GMT and GST both dropping by over 25% and shoe prices falling by up to 30%.

The community expressed great disappointment with STEPN's actions, feeling that after stabilizing prices during the two AMA sessions, the team released news in the early morning that would have a significant impact on the market, leading to suspicions about their intentions. Additionally, in order to control FUD sentiment and discussions, the team even extended the time interval for posting in the Discord channel to 6 hours, leaving users with grievances with no outlet.

The community is currently hoping that the STEPN team will provide a satisfactory explanation to their large user base, and they look forward to the next AMA session where the team can address user concerns comprehensively.

NFT