STEPN Unlocks $30 Million Worth of GMT Tokens and Sends Them to Unknown Addresses

STEPN logo and Sneaker with a hand holding the GMT token

The Web3 lifestyle app STEPN unlocked 79.2 million GMT tokens on January 8 and transferred most of them to four addresses, which then distributed them further. Some of the recipients sent the tokens to exchanges like Binance, raising questions about the motive behind the move. 

An Unexplained Move

STEPN, a Web3 lifestyle app that rewards users with tokens and NFTs for physical activity, unlocked 79.2 million GMT tokens on January 8, worth about $30.24 million at the time of writing. The app then transferred 74.02 million GMT, or 93.5% of the unlocked amount, to four addresses, which subsequently distributed them twice to other addresses.

Some of the final recipients of the GMT tokens sent them directly to exchanges such as Binance, according to blockchain data. This suggests that they were either selling the tokens or swapping them for other cryptocurrencies.

35K Reviews on Google Play

The motive behind the large-scale token unlock and transfer by STEPN is unclear, as the app has not made any official announcement or explanation about it. The move could be related to the app’s development, marketing, or partnership plans, or it could be a sign of insider trading or dumping.

STEPN is a smartphone app that lets users earn GMT tokens and NFTs in the form of sneakers by walking, jogging, or running outdoors. The app has fun game and social elements, such as challenges, quests, and rentals, and has 4.3 stars from over 35K reviews on Google Play.

20% Supply are Allocated to Team and Advisor

GMT is the native token of STEPN, which is built on the Solana blockchain. GMT can be used to buy, sell, and upgrade NFT sneakers, as well as to participate in governance and staking. GMT has a total supply of 1 billion tokens, of which 20% are allocated to the team and advisors, 15% to the ecosystem fund, 15% to the marketing fund, 10% to the liquidity fund, 10% to the community fund, 10% to the seed sale, 10% to the private sale, and 10% to the public sale.

According to the app’s website, the tokens allocated to the team and advisors are locked for 12 months and then released linearly over 24 months. The tokens allocated to the ecosystem fund, the marketing fund, and the liquidity fund are locked for 6 months and then released linearly over 18 months. The tokens allocated to the community fund are locked for 3 months and then released linearly over 15 months. The tokens allocated to the seed sale, the private sale, and the public sale are released immediately.

Token Release Does Not Match the Schedule

However, the actual token release schedule does not seem to match the one stated on the website, as the app has unlocked and transferred large amounts of GMT tokens several times since its launch in March 2022. 

The frequent and sizable token unlocks and transfers by STEPN have raised some concerns among the app’s users and investors, who fear that the app is inflating the token supply and diluting the value of GMT. Some users have also complained about the high cost and low success rate of upgrading NFT sneakers, as well as the lack of transparency and communication from the app’s team.

At the time of reporting, GMT is trading at $0.383, down 4.7% in the last 24 hours and 58.6% from its all-time high of $0.925 on November 9, 2021. The token has a market capitalization of $191.5 million and a 24-hour trading volume of $8.9 million.

Author: Grace

Grace likes gardening. She holds some BTC and ETH.