A crypto trader closely followed by the crypto community said the altcoin’s fundamentals no longer support its pricing. step (GMT) warned its investors.
Stephen on the edge of the cliff
Using the pseudonym Light, the analyst tells his 155,700 Twitter followers that GMT, which equips its users with non-fungible token (NFT) sneakers and rewards them for their real-life steps, believes that GMT is currently being overestimated after its massive spike in the last 2 months. told.
“I think GMT is about to go down a cliff in the near future.
I created a full short position at $3.80.
The token rose 40x in two months following the Binance listing, strongly mimicking what Axie went through, and with incredible app growth metrics.”
Light says that while the app’s use case is “convincing,” the number of current STEPN users does not justify the altcoin’s fully diluted market cap of over $20 billion.
“The token now marks a diluted $23 billion valuation. Pay attention to this. With 19,763 users on the app today. Buying GMT is like paying $1.16 million per existing user.”
Unlocking tokens will create selling pressure
Light also says that unlocking the tokens will put tremendous pressure on the sell side, highlighting the huge gap between GMT’s fully diluted valuation and its current market cap of around $2 billion.
The difference from the circulating $2.3 billion to diluted is due to gaming emission (which drives user growth) and upcoming investor lock-ins that existing GMT holders will have to absorb just to keep the price stable. Private tour investors from months ago increased ~750 times.”
Light says that buying GMT for its current value is now an untenable move. He also warns that GMT is seeing signs that its momentum is starting to slow.
“[Stepn] For the first time since he started trading, this momentum is declining. Fluctuation due to the latest Coinbase listing, [metaverse coin’in] He couldn’t hold on to the heights. Since Coinbase listings have historically pointed to medium and long-term peaks; this is the past [fiyat] It’s a distinctly different behavior from their outbursts.”
Light also said that despite “a lot” of positive news happening at GMT over the past few weeks, atlcoin has failed to rise, implying that market participants are already draining their holdings.
From a technical standpoint, the crypto trader added that GMT will likely hit a “round number” of peaks.
What is GMT?
Green Metaverse Token (GMT)is one of two native assets of the STEPN move-to-earn app, a metaverse cryptocurrency that promotes wellness and wellness by rewarding users for participating in outdoor activities. GMTwhile the platform’s governance token, Green Satoshi Token (GST) is the game token.
Users of the platform can earn tokens by purchasing sneaker non-fungible tokens (NFTs) from the STEPN app and participating in real-life exercise activities tracked by their phone’s built-in GPS. Currently only solo participation mode is functional on the platform, marathon and background modes are in development for future releases.
The platform also includes features like printing custom-made NFT sneakers for sale and the option to convert GST to US Dollar Coin (USDC). In addition to governance, GMT’s roles include earning stake rewards and gaining access to in-app features through writing.
Besides these, the app also has a decentralized wallet that can be used for both iPhone and Android devices.
At the time of writing, GMT was trading at $3.43, down over 16 percent from its all-time high of $4.04.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.