Popular crypto trader @AlgodTrading (Algod), who famously predicted Terra’s fall from grace, said they now expect STEPN (GMT) to follow suit.
Algod was a vocal critic of Terra, and had repeatedly called out the UST/LUNA mechanism for being unsustainable. They had also placed a bet with Terra founder Do Kwon on LUNA prices staying over $88 by March 2023.
LUNA is currently trading several decimal places below zero. Algod has also called on Do Kwon to forfeit the bet.
GMT, the latest target of Algod’s scrutiny, is a Solana-based “move-to-earn” token that has shot up in popularity this year.
Algod sees little value in GMT, to take short position
In a Twitter thread, Algod called out GMT and STEPN for offering little value to buyers. They insinuated that the program’s mechanism- ie rewarding users for walking or running- is largely unsustainable, and is likely to fail eventually.
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People making hundreds of dollars with walking on the expense of clueless buyers, it’s absurd.
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The trader said they also intend to take a short position “with size” on the token, while warning against investing in GMT for the mid to long term. Algod called the token the “next” Axie Infinity, referencing the play-to-earn game’s catastrophic tumble this year.
GMT a standout performer this year
GMT is among the best-performing cryptos this year, rallying as much as 3000% since its launch in April. The token is issued as a reward by move-to-earn program STEPN for exercising while using its app.
Its adoption by marketplaces such as Binance and OpenSea have also lent the token further credence, allowing it to at one point trade among the 50 largest cryptocurrencies. GMT is now the 59th largest crypto with a market capital of $948.8 million.
Still, critics have noted that the program will not be able to indefinitely keep rewarding users with tokens, unless it sees a steady influx of buyers.
GMT is trading up nearly 1500% since its launch, at $1.5595.
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