According to the expert, the rate of GMT used to govern the blockchain game STEPN may spike by 40%

Analyst Justin Bennett predicts the growth of the popular token

19.07.2022 - 13:25

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2 min

What’s new? Cryptocurrency analyst Justin Bennett revealed that he is taking a closer look at the governance token of the blockchain game STEPN. He discovered that GMT forms a symmetrical triangle pattern and predicted a 40% rise if the asset breaks it. In addition, Bennett drew attention to the asset’s recent pattern of higher lows. The analyst shared his views on the GMT price movement on Twitter.

Prediction details. According to the chart provided by the analyst, as the support and resistance lines converge, the GMT price consolidates in a narrow range of $0,92. If the resistance line is broken, the value of the asset could reach $1,3, Bennett believes. As of July 19, 13:15 UTC, the coin is trading at $1,06, down by 2,64% in 24 hours, according to cryptocurrency exchange Binance.

In the STEPN game, users can earn on their physical activity after buying digital sneakers in the form of NFT. In-game payments are made in GST tokens, and GMT is used for governance purposes, such as voting on key decisions in the project.

On July 12, the STEPN team announced that it would spend $6,125 million to buy back and burn GMT. Another part of the profit from commission for the second quarter of 2022 would go towards improving the platform’s security and server capacity, as well as consulting for the launch of its own decentralized exchange, DOOAR.

Burning is designed to permanently remove a certain number of tokens from circulation in order to increase the rate or prevent depreciation.

Earlier, journalist Colin Wu stated that STEPN has signs of a Ponzi scheme and also resembles a virtual casino, as the rarity of the NFT sneakers purchased by users, on which their earnings depend, is determined randomly. Wu argued that the number of users of the project was growing rapidly and that developers were releasing native governance tokens GMT too quickly.

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