GST, GMT Cryptos Plunge as STEPN Bans China-Based Users
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STEPN announced yesterday that this project will effectively ban user gameplay in China. This move is expected to take effect in mid-July. It seems investors in GMT and GST are already dreading this move.
That's partially because China is a massive market STEPN was relying on for growth. Although STEPN says it has never been in business in China, it's clear that investors were banking on its global aspirations.
Let's dive further into why this is a big deal for STEPN investors.
Why Is the GMT Crypto Falling So Hard?
China is a big market for, well, everything. In the crypto world, various projects have managed to fly under the radar when it comes to Chinese regulation. Despite bans on crypto mining and crypto in general, it's true that some projects have been able to navigate a legal grey area. For instance, new reports suggest that despite bans on crypto mining, underground efforts have made China a global mining power again.
However, STEPN's move away from China appears to indicate that the move-to-earn project isn't willing to risk it. This makes sense. Getting on the wrong side of regulation is something that could be even worse for investors.
For now though, investors are focusing on the negatives.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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