After the colossal “success” of Mavrodi’s financial pyramid, people in the post-Soviet space call it a pyramid, it seems, for all types of earnings, except for official work. So it is in the case of STEPN. Try to tell a person in a nutshell what STEPN and NFT sneakers are and, most importantly, how you can earn money. With a high probability, you will receive something like this in response: “Some STEPN, sneakers … Pyramid is everything.” Let’s figure it out.
What is a pyramid?
A financial pyramid or Ponzi scheme is a system in which new participants receive income from the treasury formed by previously joined project members.
The Ponzi scheme assumes that the project does not have a working mechanism that would generate income. And the structure functions at the expense of new investors who bring their funds. At first, there are many such investors due to advertising, including well-known bloggers, so the total treasury of the project allows you to pay high incomes. But the more time passes, the more income decreases. And as a result, it turns out that the pioneers quickly take profits and leave the project, and the influx of new users is no longer so fast as to provide high income to the participants.
All this description looks pretty familiar to you if you have been playing STEPN for more than a day. Indeed, to some extent, STEPN is a pyramid scheme. But do not rush to close the tab with the article.
First, a pyramid scheme does not always lead to a loss of funds. If you know how to analyze the market correctly, you can pick up good X even in the most natural pyramid. The main thing is to enter on time and leave on time.
Secondly, any pyramid tends to collapse sooner or later, like a bubble. But if the project prevents the collapse at an early stage by any actions, it can no longer be called a pyramid scheme or a scam.
Why is STEPN not a pyramid scheme?
STEPN pays users for the simplest walking. This idea seems absurd to many and casts doubt on the economic prospects of the project. But let’s figure out what signs do not allow us to call STEPN a pyramid.
1. Sustainability
The Ponzi scheme is based on an unsustainable economic model. In the long run, such a scheme will not generate profit for new users.
STEPN is doing everything to develop its prospects for the future:
- curbing user influx with an activation code
- systematic introduction of innovations and updates
- Integrations and partnerships with brands – ASICS, BAYC. We plan to collaborate with Nike and other sports brands in the future.
- Connection with the physical world – STEPN is going to hold offline events, as well as release merch.
All these actions allow the project to form a sustainable ecosystem capable of generating profit from various components.
2. Value
A pyramid scheme usually has no valuable concept behind it. STEPN promotes the idea of a healthy lifestyle. Yes, you can say that 10 minutes of spent energy per day is not the key to success in a healthy lifestyle culture. But community representatives in the official chat alternately say that they wouldn’t even leave the house today if it weren’t for the sneakers.
Of course, everyone should understand that health is the most important thing, and without any encouragement, you must follow it. But STEPN managed to take the concept of a healthy lifestyle to a new level and make walking a way of life for thousands of people using the move to earn mechanics.
3. Quality
STEPN was invested in its early stages by significant funds such as Sequoia Capital, Alameda Research, Folius Ventures, Solana Capital, Binance, and others. The first two are especially significant, as they deeply analyze the project and all the risks before investing in it. And if such large investors have invested in STEPN, the forecast for the future can only be comforting.
Also, the listing of meaningful exchanges speaks about the quality of the project, but to a much lesser extent. The GMT token is traded on Binance, KuCoin, Huobi, FTX, Coinbase, and OKX.
Yes, this does not wholly form an idea about the project, but if the token were not presented on these exchanges, this would raise questions.
Summarize
You can answer the question from the title like this: STEPN is a pyramid and, to some extent, the future. This is a rare project that combines the qualities of a financial pyramid and remains promising thanks to the features described above.
Yes, the income in the game is generated by new users investing in the next pair of sneakers. But the project is at an early stage, and it is of such high quality that it has all the necessary inclinations for development in the future.
The concept of a healthy lifestyle and daily workouts in today’s realities will only generate more and more demand. And the idea of making money on such simple actions will develop in all sorts of mechanics “… to earn”.
And the most important thing. STEPN has become a guide to the world of NFTs and cryptocurrencies for those who have never been involved in this before. This is a massive achievement for the project and its significant contribution to the development of Web3.
