In Brief:
- Step App (official site) is winding down operations, with all services ceasing on August 21.
- Users must unstake locked tokens and exit the platform before the deadline to preserve value.
- The project, a prominent player in the move-to-earn space, has seen its native token collapse 88% in 24 hours following the shutdown announcement.
Step App shuts down after four years
Step App announced it will shutter its operations on August 21, marking the end of a four-year venture in the move-to-earn sector. The team expressed gratitude to users who supported the platform through various market cycles, but acknowledged that the decision to close was difficult.
Once a flagship initiative during the 2022 crypto boom, Step App now joins a growing list of failed projects unable to maintain momentum post-hype. This decline illustrates the challenges faced by move-to-earn models in securing long-term engagement.
Urgent actions for users
The August 21 deadline is firm. Users must unstake locked FITFI tokens, withdraw funds, and manage asset positions on exchanges to avoid losing value if they remain on the platform after services cease. With a sharp decline in token value and potential exchange delistings, users, especially those with staked tokens, face a pressing scramble to exit.
Token falls sharply
The announcement led to a dramatic 88% drop in FITFI, Step App’s governance and utility token, plummeting to approximately 0.00001411 USD. This drastic decline leaves FITFI more than 99.99% below its all-time high of 0.724 USD reached in May 2022.
Current market capitalization stands at around 65,000 USD, a stark contrast to previous valuations that soared into the hundreds of millions during its peak. As the utility of the tokens dissolves with the platform’s closure, their functional value has been rendered nearly nonexistent.
Background on Step App
Launching on the Avalanche network, Step App aimed to incentivize physical activity through token rewards and gamified gameplay. Users earned tokens for activities like walking and running, supported by augmented reality features designed to engage users in a gaming context.
The ecosystem comprised two tokens: FITFI for governance and platform access, while KCAL served as an in-app rewards currency. Users required SNEAK NFTs to begin earning, which influenced gameplay and rewards. Despite building a suite of services including a wallet, staking options, and a decentralized exchange, Step App couldn’t establish a sustainable business model.
The rise and fall of Step App
During its peak, Step App achieved over 1 million downloads and a user base spanning more than 100 countries. Users recorded upwards of 100 billion steps, backed by partnerships across both web2 and web3 sectors. However, it failed to sustain this growth as the move-to-earn model struggled with high user turnover once token emissions slowed and market interest waned.
Another move-to-earn failure
Step App’s shutdown mirrors broader difficulties in the move-to-earn and play-to-earn gaming sectors. After a surge in interest in 2022, many projects faltered when speculative enthusiasm diminished. The closure adds to a growing number of web3 initiatives grappling with the challenge of maintaining long-term user engagement based solely on token incentives.
With the clock ticking towards the August 21 deadline, former users face difficult decisions regarding their remaining assets. After four years, Step App’s closure underscores the immense volatility and challenges in the move-to-earn space.
