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New reports by DappRadar suggest the move-to-earn platform STEPN has only one active user. Undoubtedly, these reports do not bode well for the platform. Additionally, STEPN is facing criticism for laying off around one hundred employees due to the current bear market conditions.
What is the reason for this massive decline?
While DappRadar reported that STEPN has one daily active user, others reported slightly different – but still low – results. Dune Analytics revealed that the daily active users of the move-to-earn app have dropped from 105,257 on June 26, to 6,000 in September and 11,877 on October 5. From its end, the move-to-earn company claims DappRadar’s user data is incorrect.
Many are left wondering why STEPN is declining in popularity. The answer is not so clear-cut. First off, many move-to-earn platforms launched as STEPN’s direct competitors. Usain Bolt’s Step App is one of these many apps.
Additionally, move-to-earn, and other “to earn” mechanisms have been accused of being Ponzi schemes. Ponzi scheme-based apps are a form of fraud due to the fact that they depend on paying back earlier investors with funds from the latest investors. Therefore, the only way for “to earn” users to earn money is to encourage other people to join the ecosystem. This discourages users and makes the business model unsustainable.
About the move-to-earn app STEPN
STEPN is a Web3 lifestyle and move-to-earn app powered by the Solana blockchain. Users can earn money for running, walking or jogging, in the form of STEPN’s token – Solana’s Green Satoshi Token (or GST tokens). To get started, users must purchase NFT sneakers. Then, they need to update their NFT sneakers to start earning GST. Faced with recent setbacks, the STEPN team announced via Twitter that “changes are happening so that we can continue to add value to GMT and the Find Satoshi Lab ecosystem.”