STEPN has responded to the critiques that the platform is not a Ponzi scheme. Some of the critics pointed out some schemas that allegedly showed that it is similar to a Ponzi but STEPN says that the company is avoiding the issues via managing its token.
STEPN was launched in 2021 on the Solana network. Since the concept was quite new, it raised $5 million from seed funding and investors in January 2022.
Why People Regarded STEPN as Ponzi?
As the idea of making money as you walk and run is quite new, it doesn’t make sense to the critics. They believe that it can’t be possible to generate income merely by moving. Previously, the concept of P2E was also regarded as Ponzi as it sounded too good to be true.
Another reason why critics regard it as Ponzi is that we need to have a good initial investment to start earning. Not only that but also you need to invite new users to the game, hence bringing more investment.
The critics don’t like this structure and call it a Ponzi.
STEPN has decided to improve its system so that they keep public trust and interest. They also keep sharing long-term plans such as addressing the issues and suggesting how they would improve them for long-term sustainability.
They are introducing an Anti-Cheat system and developing robust tokenomics.
The STEPN Token, $GMT, is already facing a decline in its price as the bearish market continues. This is a huge concern for the Move-to-Earn community as there is a good number of people and corporations that believe in its future.
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