If you're a huge fan of the whole move to earn thing... I'm sorry.
Move 2 Earn is a Ponzi Scheme
Ok, I know I've probably already upset some of you just by the title, and maybe even the lovely graphic I crafted above. I've been thinking about making this post for quite some time, but it never really felt like the right time. I think now it's more appropriate now that the move 2 earn craze has died down. I know I recently wrote about SweatCoin, but I consider SweatCoin totally different than these new apps claiming to reward you for your movement.
SweatCoin has been doing this for years, without any mention of crypto tokens until recently. They've built an economy around their in-app token that is earned by walking, running, hiking, etc... Now they're integrating a token into the mix, which makes more sense than how these apps like STEPN, JustMove, and MetaGym decided to do it.
I am of the opinion that a lot of these things function like ponzi schemes. Look, I'm not here to tell you not to use them or anything like that. I'm simply making some observations about the way they operate, and giving my opinion. I'll use STEPN just because it's the one I've heard the most about lately when people are talking move to earn.
My first thoughts were... Ok, cool but how does it work? Where does the money you earn come from? How much does it cost to get started? So the first major barrier to entry with STEPN is the required NFT sneaker you have to have to start earning. Looking at the website, there's 4 types of sneaker NFTs and I assume each one works better in terms of earning for different types of activities.
I assume that you can earn doing whatever activity with all of them, but what I'm looking at is the potential for earning. So I decided to check the prices of the Runner sneakers because I think that would be the best move for earning. The runner is going to require you to be running a certain speed or the steps won't count it seems.
As you can see in the image above, the floor price of a runner sneaker is about 8.69 SOL which is roughly $400. Cool, so you spend $400 to get this one sneaker NFT then equip it in the app... and start getting active. But how much do you actually earn and how long will it take to recoup your initial $400 investment while running every day?
I have no idea how the earnings are actually calculated, nor do I care to learn. I found a STEPN strategy that gives a general idea of what the earnings might look like based on a couple different things. I'll use that to get a good estimate. As you can see, the prices of both SOL and GST (STEPN's token) have gone down significantly, but it's all relative.
Based on the numbers in the article linked above, you can earn about $11 per day depending on your sneaker's stats. With our initial investment of $400, it will take about 36 days to recoup that investment. That's not considering the fact that you have to spend some of your earnings repairing and leveling up your NFTs... Let's call it 50 days to account for that. That's only if the price of GST doesn't keep going down.
Just looking at the STEPN litepaper, you can see that the GST token has an unlimited supply. RED FLAG. How can a token that's printed every single day forever maintain any kind of value? This could explain why the token has started to drop hard from it's nearly $8 all time high. Hard to believe a token that can be printed into oblivion like LUNC (LUNA Classic) could be worth that.
The crypto market is absolutely insane. So with an unlimited supply and a super high inflation rate, GST is supposed to continue holding value... but how? The only answer is more investors. Ponzi. These tokenomics literally require there to be constant money flowing in for the GST to sustain any kind of value. Call me crazy, but the only infinite-supply currency that holds its value is fiat dollars. Meaning, one USD is always worth 1 USD because the fed says so.
So what happens when people stop investing in GST or the NFTs? What happens to the value of the token when it's still printing and people aren't pumping money in? Say the token goes to 1 cent... Would you still be earning? Would you just eat the loss and try to sell your sneaker NFT? What happens when no one is willing to pay for the sneaker NFTs because GST is worthless?
This is why I say that the move 2 earn concept is kinda a ponzi scheme. What do you think?
Thanks for reading! Much love.
Wanna learn about all kinds of things you can do with the crypto you earn blogging on Hive? Check out my index - Learn Crypto Stuff for some fun educational crypto stuff.
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I understand from where this is coming. Yes! There are many #Move2earn projects which popped up suddenly looking at the hype and most of them are scams or either not going to be consistent. But with @actifit it is different. There is genuine concept behind #Move2earn projects which most projects lack, They are easy to understand, Mass adoption is possible. Actifit can bring 1000s, even millions of users to Hive. The problem is, still there is not much buzz in the Hive community itself. But there are lot of the users who have been using Actifit continuously since last 4 years including me. So there is excellent opportunity here for Hive users!
I agree, Actifit is very different! Not a ponzi at all, and very underrated.
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I agree, and the price of a pair of shoes is just insane. I'm afraid a lot of people will lose a lot of money.
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Yeah a lot of people already have. Now they're just doing their activities and hoping the token recovers... It won't.
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Sweatcoin is still shit xD
It is, but at least they didn't make people buy $400 NFTs to use it lol
True :p
I did also use it back when it wasn't crypto
I still use it, in the background on my phone. I never open it. Maybe one day I'll be shitcoin rich
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You need buy a sneakers nft first. Then can exercise and takes many days to recoup the investment. But it's a big gamble if it's not a Ponzi scheme. And you have to hope the token doesn't lose value !
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Yeah have to have a lot of faith that the token doesn't go to zero. It is unlimited, after all.
The shoes are just too pricey for me so I dismissed it totally. Actifit I think is okay.
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I think Stepnearn is a ponzi scheme but things like Actifit could also be considered movetoearn. I don't think Actifit is a ponzi scheme as the structure is based on Hive and they are doing their best to limit down the supply of tokens on the market to maintain price.
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Yeah, as I've said in response to other comments. I consider Actifit to be totally different. There's not investment and there's no need for money to keep flowing in from new investors. No ponzi there.
This is a great analysis, but I think actifit works differently.
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Actifit definitely works differently. That's why it want mentioned.
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You are right , BTC finally bumping
They could just buy $400 worth of BTC or HIVE and be much happier.
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Of course it is. Thanks for pointing it out.
Someone had to be the bad guy, you know.
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Damn, so i wont get paid to move my lazy ass then! Need to think of plan B.
McDonald's needs tendie cooks
back to McDs! :(
Very rude graphic :D
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Isn't it good, though? lol
You and @chekohler give me all the crypto horse shit that I need to read LOL I like the honesty here and I feel bad for those who bought into this crap. Needing to use a GPS tracker to actually earn? Yeah no thanks! Sounds like Pokemon Go, just trying to keep tabs on ya.
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Wow! I love his content, just gave him a follow.
Yeah, STEPN in shitcoins lol.
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No Move2Earn is no ponzi but Stepn is. They just focus on walking whereas @actifit lets you choose your activity, meaning that during arm intense gym sessions I have my phone bound to my arm very well knowing that generally in gym I won't earn as much as for example cycling outside and keeping it in my pocket. So where does this difference is "disappearing"? Answer into my body capital. A sixpack is worth more on the flesh market than legs. Training/forming shoulders beats flat ass (when walking) as much as squats are beating just steps.
most move to earn platforms are ponzi schemes. Actifit is not a ponzi because there's no investment and there doesn't need to continuously be new investors to keep the rewards flowing.
Speaking in financial terms yes
I fully support Actifit! They aren't selling you a $400 nft just to get involved. No ponzi there.
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