STEPN token plummeted 11% on news of the company's downsizing

STEPN token plummeted 11% on news of the company's downsizing

The platform will lay off more than 100 employees and reduce investment in the move-to-earn project

The token of the well-known blockchain project STEPN (GMT) fell in price by 11% overnight. The rate of the coin went down after it became known that the company began laying off staff. The cryptocurrency price fell from $0.64 to $0.56, according to Coingecko.

The company will lay off more than 100 testers, ambassadors and other employees, and the platform will also cut investment in the move-to-earn project and its development, Chinese journalist Colin Wu (WuBlockchain) reported, citing sources in the STEPN community.

STEPN, a Move-to-Earn mobile app, was released on march 2 of this past year. The app's core concept is to get cryptocurrency for moving about. Members purchase NFT shoes and gain in-game money in GMT by walking in the real world.

The project quickly gained popularity. STEPN's revenue for the second quarter of this year was $122.5 million. And on April 28, the price of STEPN token (GMT) showed a historical high, reaching the mark of $4.1. However, in the third quarter, the popularity of the project went down. As of 12:00 NY time on October 13, the altcoin is trading at $0.56, 86% below its price high. The coin has a market capitalization of $340 million.

According to Wu, the developers of STEPN have begun to focus on promoting their parent company Find Satoshi Lab. Also, they are focusing on new projects, such as the NFT exchange platform.