STEPN Airdrop Plunges GMT Token Value by 6.5%

STEPN's airdrop announcement has led to a 6.5% drop in its native token, GMT, as reported by CoinMarketCap. The airdrop of 100 million FSL bonus points, convertible to GMT, has caused GMT trading to surge by 31% to $124.5 million over the last 24 hours. The distribution, based on the ownership duration of Genesis sneakers, will reward those who have held them for longer periods.

STEPN's Airdrop Announcement Triggers Plunge in GMT Token Value

April 10, 2024

The move-to-earn project STEPN's highly anticipated airdrop announcement has sent shockwaves through the cryptocurrency market, leading to a significant drop in the value of its native token, GMT.

According to data from CoinMarketCap, GMT has plummeted by 6.5% over the past 24 hours, trading at a mere $0.29. Simultaneously, trading volume for GMT has surged by 31%, reaching $124.5 million.

Analysts believe that the sharp decline in GMT's value is a direct consequence of STEPN's announcement of a 100 million FSL bonus point airdrop. These bonus points can be converted into GMT tokens at a ratio of 1 to 1.

Based on the current token price, the airdrop's total value stands at approximately $2.9 million. The airdrop is intended to reward STEPN's most loyal community members, specifically those who have held Genesis NFT sneakers for extended periods.

"With this new airdrop, we want to reward our most loyal community members. That's why...," STEPN tweeted.

The number of bonus points distributed to each user will vary depending on the holding period of their Genesis sneakers. Those who have held their sneakers for over 24 months will receive the highest number of points, followed by those who have held them for 12-24 months and 6-12 months.

To qualify for the airdrop, users' sneakers must have been in their accounts and not listed for sale on the snapshot date of April 7. Additionally, participants must have used at least two "energies" within 30 days prior to April 3.

The airdrop announcement has raised concerns among some market participants, who fear that it could lead to a sell-off of GMT tokens by those who received the bonus points. This could further exacerbate the downward pressure on GMT's price.

Analysts are closely monitoring the situation and cautioning investors that the airdrop could have significant implications for the GMT token market. They recommend that investors carefully consider their investment strategies in light of this development.