Prices of cryptocurrencies were uneven today, with Bitcoin trading above the $38,000 barrier. At $38,467, BTC was practically unchanged. According to CoinGecko’s pricing, the global crypto market’s value has risen to $1.81 trillion in the last 24 hours.
On the other side, Ether increased modestly to $2,843. Meanwhile, the price of dogecoin is down approximately 0.5 percent to $0.13, while the price of Shiba Inu is down more than 3 percent to $0.000021.
A well-known crypto trader has issued a warning to STEPN (GMT) investors, claiming that the altcoin’s fundamentals no longer support its current price.
After a big increase in the last two months, Pseudonymous analyst Light tells his 155,700 Twitter followers that he feels GMT, which equips users with non-fungible token sneakers and rewards them for doing real-life steps, is tremendously overvalued.
“Think GMT is about to walk off the edge of a cliff in short order.Built a full short position in the $3.80s.”
On a great Axie mimic narrative and incredible app growth stats, the coin went up 40x from its Binance IPO in two months, he added.
While the app’s use case is “compelling,” Light claims that the current number of STEPN users does not warrant the company’s fully diluted valuation of more than $20 billion.
GMT Price Crashing Down?
Light also points out the huge disparity between GMT’s present market capitalization of roughly $2 billion and its fully diluted valuation, predicting that token unlocks will result in a lot of sell-side pressure.
The analyst says that the game emission (which is fueling user growth) and upcoming investor unlocks, which present GMT holders will have to absorb only to keep pricing stable, make up the difference between the $2.3 billion circulating and the diluted.
Investors in the private round from a few months ago had seen a 750x return, he said.
According to Light, buying GMT for its worth is no longer a viable option. He also warns that he’s noticing indicators that GMT’s momentum is slowing.
Light also claims that despite a “boatload” of encouraging news in recent weeks, GMT has failed to move higher, implying that market members are already selling their positions.
The crypto trader adds that GMT has most likely put in a top at “round number” from a technical sense.