July 13, 2022

STEPN reports record quarterly profit

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10 min

STEPN reports record quarterly profit

On 12 July, the official blog of the developers of the M2E game STEPN posted its financial results for the second quarter of this year. Over the past months, the app's net profit was $122.2 million, and that's considering the recession and high volatility.

Compared to the first quarter, profitability was up almost fivefold, with Q1 profit of just $26 million.

What kind of app is it?

In addition to P2E games, there are many projects online that offer the user a reward in cryptocurrency for certain actions. You can get money for walking around, for example.

STEPN belongs to the same category of applications. That is, the project offers the user a reward for physical activity. You can read a detailed review of this game on our website.

Once you reach level 30, the game gives you the opportunity to earn internal tokens—Green Metaverse Token (GMT). They can be spent on NFT or sold for real cryptocurrency.

Popularity amid the global downturn

Two factors can explain STEPN's success—the growing demand for anything related to NFT and the lack of investment from users. Despite the recession in the cryptocurrency market, the popularity of tokens and metaverses remains extremely high.

The numbers confirm this. In three months, the profit of the application developer company has grown significantly. At the same time, there has been no significant user churn, as happened with Axie Infinity.

How will the management dispose of the funds?

The company intends to spend up to 5% of its profits to reduce its internal token offering. The developer will buy back the GMT and then dispose of them. This will increase the value of the token on the domestic market.

The rest of the money will go towards:

  • Upgrading the DDoS attack protection system;
  • Upgrading the anti-chitting system;
  • Hiring new employees;
  • Attracting new partners and promoting the brand.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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