The closely followed mystery crypto analyst warns investors of a Web3 coin project that what’s going to happen soon, saying the project fundamentals no longer support valuation.
“The most explosive Web3 coin project of 2022 is about to fall off the cliff”
Twitter analyst nicknamed “Light” tells his 155,700 Twitter followers that he believes GMT is overvalued after experiencing a massive rally in the last two months, which rewards users for real-life steps and equips them with NFT shoes:
GMT’ Imagine that the squirrel is about to descend from the edge of a cliff in a short time. Created a full short position at $3.80. The token’s rise is similar to that of Axie, and with incredible app growth metrics, it rose 40x off the Binance chart in two months.
Light adds that while the app’s use case is “challenging,” the number of existing STEPN users does not justify its fully diluted value of over $20 billion:
Token is now diluted That’s a $23 billion valuation. With 19,763 users on the app today, buying GMT is like paying $1.16 million per current user.
Analyst says expiring staking locks will drive price down
Light also explains the huge gap between current market cap of approximately $2 billion from GMT’s fully diluted valuation emphasizing that the token lock will create enormous sell-side pressure:
The difference from the circulating $2.3 billion to diluted is the game emission (which drives user growth) and upcoming investor unlocks that current GMT holders will have to absorb just to keep the price stable. is coming. Private tour investors increased ~750 times from months ago.
Light says that buying GMT for its value is now untenable. He also warns that GMT is seeing signs that its momentum is starting to slow:
This is the first time since trading started, that momentum is declining. The latest Coinbase listing drive has failed to hold above the highs. This is markedly different behavior from past breakouts, and Coinbase listings have often historically pointed to mid- and long-term highs.
Light also implies that GMT has not risen despite a “boatload” of positive news over the past few weeks and market participants are already draining their holdings. From a technical standpoint, the analyst adds, GMT likely tops it by “round numbers.”
13071
