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Founded by Huang and its founder Yawn Rong in Adelaide, Australia, StepN first appeared in the Solana hackathon in October. After entering fourth place, its exposure to the event helped it gain its first collection of beta users. When it was officially launched two months later, the words about the app that allowed a person to benefit from staying fit were already widespread within the blockchain community. In addition to any blue ad campaign, many users have subscribed.

Within a few weeks, StepN was growing so fast that the team needed to close the daily subscription number. Now, tens of thousands of new users are joining the app every day, according to Huang.

Huang, a serial entrepreneur, and Rong, a blockchain venture fundraiser, had funded the project in the beginning with the couple being "financially stable." But in September, they decided that fundraising could bring in other logical resources such as partnerships and advertising. The founders spoke with more than a hundred investors and reviewed their site more than 40 times before closing the $ 5 million seed cycle from Sequoia Capital and others in November.

"We did not have a product at the time, and many investors could not understand what we were doing. Sequoia did.

Indeed, the fast-growing app seems to be self-supporting right now. It generates $ 3-5 million with residual interest in day trading payments, and earns up to $ 100 million per month. In April, he took another round of investment strategies from Binance.

Is it a game?

Some argue that what makes StepN - and other blockchain gaming games for profit like Axie Infinity - succeed in being a financial product with a gamified twist.

To start earning tokens and logging miles in StepN, users must first spend at least sol 12 or about $ 600 on real shoes at current market value. Digital shoes are in the form of a non-mold (NFT) token running on the Solana network and Binance's smart chain so it can be resold over time, but the entry fee is still not a small amount for any regular player.

Over time, StepN users will need to accumulate new kicks to climb. A normal return on investment requires about a month, during which time people can start generating up to a few thousand dollars a day depending on their level, performance, and current price of StepN tokens. In other words, the game can be very rewarding.

In the eyes of game veterans, the game of most existing GameFi apps is "simple and straightforward." Axie Infinity, for example, combines beautiful blob-like creatures fighting in simple battles. Thus, the participants in web2 games came in large numbers for GameFi, promising to restore quality to the industry.

Huang begged her to be different. "Most triple-A games place a lot of emphasis on budget and budget, but it's not really refreshing when it comes to the game, while other seemingly simple games like Plats vs. Zombies come with smart play that makes it last longer," said Huang, who was in charge. built his own studio in China before moving to Australia a decade ago.

"Many newcomers to GameFi are pursuing three-fold products," he continued. "But if they had not been successful on web2, why would they be on web3? Some games that look so simple are not so easy after the incident, for example, how we design the economy of our app."

Is it sustainable?

Some critics question the financial viability of the game to earn. Maintaining such a business model means that the game needs to be addictive so that users can continue to play without withdrawing their coins, or that the app continues to attract new buying users to replace those who withdraw money. Critics even draw parallels between play-to-earnings in pyramid schemes.

Axie Infinity could not support its meteoric rise. Sky Mavis, Vietnam's studio after the game, was estimated at $ 3 billion in a $ 150 billion funding round last October. But its token has lost more than 80% of its value since it rose in November at $ 160, and its sales volume has dropped from $ 754 million to just $ 5 million.

Losing a few thousand dollars is not the end of the world for many StepN users, 20-40 years old who come from rich countries like the US, Japan, and Europe. China, where crypto trading is banned, accounts for less than 5% of its user base, Huang said. But Axie Infinity players are focused on developing countries such as the Philippines and Venezuela, many of whom are betting large amounts of their savings on the game, which is a major source of their income during the COVID violence.

StepN proposes a double standard solution. First, it works on a price-fixing mechanism to ensure that the cost of its coins remains at a level that the shoes are affordable for new users but also so cheap that existing users have no incentives to design new shoes, that is, to create. new shoes on blockchain and sell.

Price fraud is achieved through its two-token system. If the price of its GST "coin" is too high and the shoes are getting priced, StepN will ask players to burn GMT "coin management" to assemble new shoes. GST supply increases as a result, leading to sales and lowering its costs.

Huang also argued that StepN's eligibility component makes it very different from Axie Infinity. "Yes, users can make money on StepN in the beginning, but in time they will get used to staying active, so they will keep going or running regardless of the financial rewards."

"A lot of people don't see StepN as a real game. And they don't consider it to be a viable app because users can make money with it," said Curt Shi, co-founder of Welinder & Shi Capital and a first-time investor in StepN. "It's difficult to define what it is right now, but time will tell."

Source: yahoo

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