STEPN’s GMT drops 10% amid reports of alleged token sale by Binance Labs

Web3 activity tracker STEPN is facing a 10% decline in token value amid reports of its strategic investor Binance Labs dumping over $3 million worth of GMT.

Binance Labs, a crypto venture giant, has allegedly started selling its stake in STEPN after reports indicated the firm had moved over $3 million in GMT to Binance‘s deposit address.

In an X post on Apr. 2, blockchain analytics firm Spot On Chain revealed that wallet 0x2e5 “likely” tied to Binance Labs deposited 9.33 million GMT to Binance on Apr. 1. The firm noted Binance Labs’ status as a strategic investor in STEPN and alleged that the firm had allocated over 37 million GMT tokens since July 2023, when the strategic investment was first announced. Subsequently, Binance Labs purportedly transferred more than 28 million GMT to Binance.

Following the latest transfer, Spot On Chain estimates that Binance Labs still holds approximately 9 million GMT, valued at around $2.9 million. After the news broke, the price of GMT experienced a sharp decline of over 10%, plummeting to $0.32, according to data from CoinMarketCap. At the time of writing, Binance Labs made no public statement on the matter.

Binance’s strategic investment in STEPN was initially announced in 2022, with the exchange expressing its belief in the potential of gamifying exercise to attract more individuals to the industry and accelerate the “mass adoption” of crypto and blockchain technology. Among STEPN’s other investors are Sequoia Capital, Alameda Research, Folius Ventures, Solana Ventures, 6th Man Ventures, and Sfermion, although specific financial details regarding the funding remain undisclosed.

Introduced in 2021, STEPN is a web3 activity tracker that employs blockchain technology to monitor and encourage physical activity. The platform operates on a dual-token system consisting of the Green Satoshi Token (GST) for gaming purposes and the Green Metaverse Token (GMT) for governance.