Analyst advises STEPN (GMT) investors to get out: GMT price will crash in the next few days

Cryptocurrency prices were uneven today, with Bitcoin trading above the $38,000 barrier. At $38,467, the BTC remained virtually unchanged. According to CoinGecko pricing, the value of the global crypto market has reached $1.81 trillion in the past 24 hours.

On the other side, Ether rose modestly to $2,843. Meanwhile, dogecoin price is down about 0.5% at $0.13, while Shiba Inu price is down more than 3% at $0.000021.

A well-known crypto trader has issued a warning to investors from STEPN (GMT), saying that the fundamentals of the altcoin no longer support its current price.

After rising sharply over the past two months, pseudonymous analyst Light tells his 155,700 Twitter followers that he believes GMT, which equips users with non-fungible token sneakers and rewards them for taking steps in real life, is hugely overrated.

“I think GMT is about to jump off a cliff edge in a short period of time.

On a great story of imitation from Axie and incredible app growth stats, the crypto has grown 40x since going public on Binance in two months, he added.

While the app’s use case is “compelling,” Light says STEPN’s current user count doesn’t justify the company’s fully diluted valuation of over $20 billion. .

/3 The token now implies a $23 billion valuation diluted. Read that again. With 19,763 users on the app today, buying GMT is akin to paying $1.16 million per current user.

The price of GMT is collapsing?

Light also points to the huge disparity between GMT’s current market cap of around $2 billion and its fully diluted valuation, predicting that unlocking the tokens will lead to heavy pressure from the selling side.

The analyst says that the issuance of the game (which is fueling user growth) and upcoming investor unlocks, which current GMT holders will have to absorb just to maintain price stability, make up the difference between the 2.3 billions of dollars outstanding and diluted value.

Investors in the private round a few months ago saw a 750x return, he said.

According to Light, buying GMT for its value is no longer a viable option. He also warns that he has noticed indicators that show GMT’s momentum is slowing down.

Light also claims that despite a “shipload” of encouraging news in recent weeks, GMT failed to rise, implying that market members are already selling their positions.

The crypto trader adds that GMT has most likely set up a “round number” top from a technical standpoint.

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Analyst advises STEPN (GMT) investors to get out: GMT price will crash in the next few days

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