StepN's Utility Coin, GST, Is Going To Zero.
Hey guys!
I haven't posted in a while, so I thought I'd share something that I've been looking at more and more lately - GST.
For those who don't know, GST is the main utility coin of the popular mobile walk-to-earn Solana app, StepN. For those unfamiliar with the game, it's basically an app that pays you to walk around / run / move, provided you own some of the game's native NFT shoes.
The app has skyrocketed in popularity over the last 6 months since its launch, as users are attracted to the idea of getting paid to do something everyone does everyday, more or less. But, if you look at the crux of the last sentence; that's the problem.
People walk around every day, and they do it because it provides utility to them. Walking doesn't provide utility to anyone else, and thus there's nobody actually "paying" users to walk around - the game simply mints these GST tokens as a means of compensating users. The game does require that users "pay" GST tokens in order to repair their digital NFT shoes, in addition to a few other actions within the game.
However, as users begin to seek a return on investment, they will sell GST for SOL or USD, and thus GST will have permanent supply pressure. And, as long as it's profitable to walk around using StepN, this will be the case. Once it's no longer profitable to walk with StepN -> what's the point of the app? Users will leave just as fast as they arrived, and the ecosystem will collapse.
Thus, it's my estimation, that no matter what happens with GST in the short term, it has the potential to crater 90% or more. Even though it's already down 90%.
One other thing: GST also causally ties to the price of the NFT sneakers.
If you can find a way to short this, please do. If you can't: please at least sell/stay away and sell everything you have. You will not break even on your shoes.
Finally: adoption won't help. In fact, it will only serve to drive down GST more. Don't hold this token hoping for an adoption narrative.
Stay frosty
AW
I haven't posted in a while, so I thought I'd share something that I've been looking at more and more lately - GST.
For those who don't know, GST is the main utility coin of the popular mobile walk-to-earn Solana app, StepN. For those unfamiliar with the game, it's basically an app that pays you to walk around / run / move, provided you own some of the game's native NFT shoes.
The app has skyrocketed in popularity over the last 6 months since its launch, as users are attracted to the idea of getting paid to do something everyone does everyday, more or less. But, if you look at the crux of the last sentence; that's the problem.
People walk around every day, and they do it because it provides utility to them. Walking doesn't provide utility to anyone else, and thus there's nobody actually "paying" users to walk around - the game simply mints these GST tokens as a means of compensating users. The game does require that users "pay" GST tokens in order to repair their digital NFT shoes, in addition to a few other actions within the game.
However, as users begin to seek a return on investment, they will sell GST for SOL or USD, and thus GST will have permanent supply pressure. And, as long as it's profitable to walk around using StepN, this will be the case. Once it's no longer profitable to walk with StepN -> what's the point of the app? Users will leave just as fast as they arrived, and the ecosystem will collapse.
Thus, it's my estimation, that no matter what happens with GST in the short term, it has the potential to crater 90% or more. Even though it's already down 90%.
One other thing: GST also causally ties to the price of the NFT sneakers.
If you can find a way to short this, please do. If you can't: please at least sell/stay away and sell everything you have. You will not break even on your shoes.
Finally: adoption won't help. In fact, it will only serve to drive down GST more. Don't hold this token hoping for an adoption narrative.
Stay frosty
AW
Comment:
-60% so far haha
Comment:
-95% now
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