Solana-based move-to-earn app STEPN has published its recent financial books which reveal that the application gained about $122.5 million in profits through its platform fees on the STEPN app in the second quarter of 2022.
STEPN is a fitness app that pays users for physical activity that involves movement e.g. running, walking, and jogging. To earn, you need to buy NFT sneakers that will measure your steps and equate them to cryptocurrency using the STEPN value system.
There was also mention of a sneaker rental system in the works for people who couldn’t afford to buy the NFT sneakers. The user is paid in STEPN tokens which is down by over 300% from its all-time high. STEPN lol tokens debuted at $0.15 but quickly rose to $4.18 (An all-time high). They currently trade between $0.9 and $1.
As the official announcement stated, STEPN is planning to use 5% of the liquidity profit to commence a buyback and burn program that will also involve GMT and sneakers. They also informed the public that they intend to take time with the buyback and burn program for some weeks to avoid triggering absolute price volatility of the STEPN token.
The platform will also ramp up its existing features and team with the allocation of capital reserves. Branding will be one of the top priorities as STEPN is looking to deploy a heavy amount of profits towards the development and disbursement of physical merchandise for overall brand awareness and marketing.
The move-to-earn crypto model is becoming very majorly accepted. This is the reason STEPN and other crypto lifestyle apps are such a success. The lifestyle app has seen massive growth in users since its launch in December 2021.
However, despite their success, STEPN is backing out from mainland China due to regulatory pressure and has set a deadline of July 15th for the effection of their service exit. STEPN founder, Jerry H. said Chinese users account for just 5% of the app user base hence the ban will not significantly affect the business.
Featured image source: nftnewstoday.com
