Sweatcoin: A Move-to-Earn game that allows you to earn coins while walking.

Still sweating it out at the gym but not earning a dime? Sweatcoin turns your daily walks into real money. This app is straightforward: walk → track steps → exchange for SWEAT tokens → withdraw or spend.

The core mechanism explained in one sentence

1000 steps = 0.95 Sweatcoin (early) or requires 3623 steps to generate 1 SWEAT Token (current), depending on the time. The app tracks your steps through your phone's GPS and motion sensors, and only real outdoor activities count to prevent cheating.

Unlike other Move-to-Earn games (such as STEPN), Sweatcoin is completely free and does not require spending money to buy NFT shoes. However, the trade-off is that the income is relatively lower.

The data is a bit intense

As of May 2024, over 120 million users globally have generated more than 50 billion SWEAT tokens. What does this mean? The token supply is immense, and the risk of inflation is a major issue.

Token Economics: Strategies to Prevent Inflation

• Output Decrease: The first year 1000 steps = 1 SWEAT, after one year it drops to 0.33, and after 5 years it is only 0.02.
• Daily Limit: Earn up to 5 SWEAT per day, unless you stake your Token to unlock.
• Official Withdrawal Fee: A 5% handling fee will be charged when withdrawing.

These designs are essentially the project team patching things up, trying to prevent the token from depreciating. But the problem is, when the number of users and daily active users no longer grows, the price pressure will be significant.

What can you do with SWEAT?

1. Consumption: The Sweatcoin market has over 600 partner brands (Apple, Audible, Headspace, etc.), where you can buy products or subscribe to memberships.
2. Trading: After transferring to the wallet, you can sell it on the exchange.
3. Staking: Lock up SWEAT to earn rewards
4. Donation: Support charities like Save the Children (take advantage while doing good)

Sweatcoin vs STEPN Comparison

Privacy and Security: Not Bad

• Do not sell data to third parties
• Step count data is processed anonymously.
• Used a two-factor verification algorithm to prevent cheating.
• Supports two-step authentication (2FA)
• No sensitive information is required.

However, it is important to note that GPS location data will still be collected to verify the authenticity of the steps. If you are concerned about privacy, you need to think carefully.

What are the follow-up plans?

• NFT Market: Plans to launch an NFT market trading with SWEAT.
• Exercise Expansion: Expanding from walking to activities like cycling, swimming, and more.
• DAO Transformation: Moving towards decentralized governance, users gain more voice.
• Device Compatibility: Supports more wearable devices (Fitbit, Garmin, etc.)

Want to maximize your income? Do it this way

1. Walk more (obvious but effective): Outdoor step recognition rate is higher.
2. Use Daily Boost: Choose an active period for 20 minutes, and your earnings will be doubled.
3. Participate in Challenges: Daily tasks in the app can earn extra coins.
4. Invite Friends: Each referrer has rewards.
5. Maintain Consistency: Use it every day, don't fish for three days and sunbathe for two.

Investment Perspective: Should You Go For It?

Good news:

• A user base of over 12 billion, potential for large-scale adoption.
• Combining health trends, the marketing direction is towards
• 600+ brand collaborations enhance the ecosystem

Risk:

• The token supply has exceeded 50 billion, and inflation is serious.
• Diminishing returns system, later users' returns are not as high as early users.
• User retention is difficult to maintain (uninstall when they can't make money)
• Regulatory risk: Some countries may treat M2E applications as gambling regulation.

In the long run, the value of SWEAT depends on the real application scenarios of the ecosystem and user retention rates. If it's just to “earn coins for free,” it is likely to lead to disappointment.

Bottom line

Sweatcoin is an interesting experiment that proves the possibility of combining cryptocurrency with everyday activities. However, it is essentially a points system, not a real investment tool. It’s fine to treat it as a fitness incentive, but don’t have too high expectations if you consider it as a cash-out machine.

Research has shown that users increase their activity levels by 20% after using such applications, so if you need motivation to be more active, why not give it a try? After all, it won't cost you anything.