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During the past 24 hours, the global cryptocurrency market has made notable gains. The price of Bitcoin has gained to $31K, and it is pulling all altcoins up. One of the crypto gainers during the past 24 hours is STEPN (GMT). The token is gaining despite notable issues reported with its Discord servers.
STEPN is a move-to-earn blockchain project that promotes non-fungible tokens (NFTs) to help people keep fit. Last week, a series of negative occurrences plagued the project, triggering skepticism over the viability of play-to-earn projects.
STEPN suffers from a DDoS attack
STEPN released a Twitter thread on June 4 notifying its users about adopting the “Anti-Cheating” infrastructure into the gaming platform. One of the main issues faced by blockchain projects is sustainability.
When play-to-earn platforms are just starting out, they record notable success, and the entire system works in harmony. However, challenges are usually experienced when the number of users starts increasing. This threatens the sustainability of the gaming mechanisms, and some tend to fail after a few years of operation.
On the STEPN blockchain, some of the observations noted that some players adopted bots and GPS spoofing. This was done to increase the number of tokens gained from using the application.
The STEPN Twitter post noted that it resulted in several hours of downtime after the system was upgraded. Some of the runners on the platform were categorized as bots through the new system. This was caused by 25 million distributed denial-of-service (DDoS) attacks sent to the server through a new system. These attacks made some users be locked out of the platform.
After a while, STEPN issued another announcement to its users, assuring them that the network had been restored to normalcy. It further added that data transfers had been restarted again and remained significantly stable. Another report said that users did not have to be worried about a similar occurrence happening again.
STEPN tokens record a decline
While P2E platforms are mainly used by people who want to earn extra revenues through the provided earning mechanisms, some people also invest in the native tokens of these projects, hoping that prices will gain in the future as more utility is generated by the network.
The incidents with the STEPN project spooked investors that started building buying pressure for STEPN’s GST tokens. The level of trust in crypto projects was affected by the collapse of the Terra network, and the market is currently looking for projects with the potential to be successful in the long run.
The GMT token reached an all-time high of $4.11 in April. The token is currently down by 75% since these prices. After the STEPN team announced that the project faced challenges, GMT recorded a plunge to new lows.
At the time of writing, GMT was trading at $1.02 after a 5% gain during the past 24 hours. The gains made during this time come from a healthy recovery across the cryptocurrency market. However, these gains have yet to erase the damage caused by the DDoS attack on the STEPN network.
However, the gains made by the token could be short-lived because the market has not sustained any strong uptrend since the beginning of the year. If the project records another weakness or users face issues with the move-to-earn mechanism, the token could suffer more damage.
GMT is currently doing well by holding a price level above $1. However, if selling pressure mounts, it could drop below $1 and test the $0.92 support level.
To learn more visit our Investing in STEPN guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.