Although still in a beta phase, excitement has been spreading in recent weeks around the development of new Web3.0 content associated with STEPN. This is part of the new age “play to earn” ecosystems that allow players to earn coins for activities. With initial growth looking strong, we think that the GST/GMT price could surge.
What you need to know
GST is the game token within the STEPN game. GMT is the governance token, which we expect could eventually take over as the larger coin of note for outside investors. For the moment, GST is most in focus, and has over doubled in the past three months vs USD.
GST has value within the STEPN game as it’s awarded to players who participate in activities. the main one is movement, either by running or walking. Users buy an NFT sneaker, which then gives access to earn GST when being used for exercise.
One element that should keep the GST price supported is the fact that the coins are burned when users reinvest into their sneakers. For example, to improve the efficiency and resilience of the shoe, the coin is used to purchase higher levels for the attributes. This burning process naturally will help to keep supply limited.
Why we like STEPN
Unlike other crypto projects, we feel that STEPN has a high chance of doing well. It’s global appeal and ease of use should attract a host of players. Further, the new age of play to earn is extremely attractive, with users having an incentive to interact and stay engaged with the game for longer.
As GST becomes more widely adopted, we also think there is a good chance of a listing on major crypto exchanges later this year. It already has interactions with Binance via an NFT drop last week. Being in early on projects like this enables investors to reap potentially large rewards when listings occur and the coin is opened up to a broader client reach.
Finally, GST and GMT have intrinsic value when tied to the price of the NFT sneakers. This sets it apart from other cryptos that don’t have anything substantial behind the scenes.
Risks to be aware of
There are risks to consider. The main one we see is that the stage is still early enough to get rug pulled, or for it to lack the needed backing to really reach scale and get off the ground. Another element of concern is that as STEPN becomes more mainstream, GST rewards will likely be reduced. In other words, the success of GST might become a problem in itself. It it trades to $10 or higher, the incentive rewards might be cut to a level that it isn’t that attractive for users to walk anymore.