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 allegedly laying off around one hundred employees due to the current bear market conditions.
Does STEPN Really Have Just 1 Active User?
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.
An Official STEPN spokesperson reached out to NFTevening to say:
“We deny the rumour that STEPN has been laying off staff due to the bear market. These are baseless claims that are factually inaccurate. We pride ourselves in being transparent with our community and we are choosing to address these rumours head-on to avoid any further speculation on falsehoods.
The reality is that STEPN has parted ways with volunteer MODs who have not been active in the last few weeks and months. Regarding our staff, STEPN is actively hiring for several different roles within the company.
We at STEPN are disappointed that we even have to address baseless rumours, but we will continue to do what we do best. We remain strong and continue to build, grow, and evolve despite the bear market. Keep STEPN.”
Why is Move to Earn On the Decline?
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 the source of much criticism. Many people refer to such apps as ‘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.”
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