STEPN opens its first physical office at the government-run startup accelerator Cyberport in Hong Kong.
The move comes as other crypto-related companies are pulling out of Hong Kong in anticipation of a new licensing regime for crypto exchanges.
Former Cyberport Chairman George Lam traveled to Sydney to invite the STEPN team to Hong Kong. The STEPN representatives, in turn, were encouraged that George Lam asked for help in creating a Web3 environment for Hong Kong.
STEPN was launched last year and quickly gained popularity in the US and Japan. In the first quarter, the company made a profit of $20 million, mainly due to a reduction in in-game transactions. In January, the company received $5 million in funding from investors including Sequoia Capital.
Cyberport was looking to capitalize on the growing interest in Web3. Hong Kong-based blockchain giant Animoca Brands, which owns The Sandbox metaverse, is also based in Cyberport.
According to the company’s latest annual report, there are about 800 start-ups and technology companies in the state-owned incubator. In addition to fintech and blockchain, he has identified smart cities, digital entertainment, and artificial intelligence as areas of focus.
STEPN’s upcoming move, for which there is no specific timeline yet, is challenging Hong Kong’s dwindling talent pool. Many businesses have closed or moved due to strict controls and quarantine measures. The National Security Law imposed by Beijing on Hong Kong in 2020 has also contributed to a reduction in talent.
STEPN considers Hong Kong to be the best blend of Western and Eastern cultures and a major financial center in the world.
Since the May crash, STEPN has seen a significant drop in player activity. Dune Analytics estimates that monthly active users dropped to 132,000 in August, from over 700,000 three months earlier.
