The Bored Ape Yacht Club values have fallen to a two-year low, and other well-known projects have also recently seen significant price declines. As a result, several investors and leaders in the NFT industry are beginning to identify Blur as the culprit.
Trading sentiment against the startup marketplace’s incentive-based trading mechanism is increasing as NFT prices decline. In February, it surpassed OpenSea as the most active Ethereum NFT trading platform. Blur has supported the idea that NFTs aren’t special and are just “altcoins with pictures,” as notorious crypto influencer Cobie claimed they were last year. NFTs may symbolize resources like artwork and in-game objects.
Is the price crash real?
When Blur was first introduced in October of last year, it advertised as being the platform for professional traders in digital currencies and teased an upcoming token airdrop which would make choosing Blur over OpenSea and other competitors advantageous. When the BLUR coin did arrive in February, Blur quickly overtook OpenSea to take the number one position in terms of trade volume.
However, that incentive model instantly sparked debate in some NFT circles. Blur’s trading activity increased, raising the market’s total for February past $2 billion. However, some, including as analytics site, refer to the act of flipping “wash trading.”
The Blur bump was only temporary. The volume of trading on the market as a whole has decreased significantly in the past few months, and whale investors who initially successfully manipulated the rewards model are either suffering losses or withdrawing their money from Blur’s NFT bidding pool.
The previous few days have seen an increase in the criticism of Blur’s strategy from influential Crypto Twitter users. The Bitcoin Frontier Fund’s managing partner, Trevor Owens, stated on Tuesday that Blur’s strategies have hurt the market and that markets fight over controlling the price “floor,” or lowest cheapest-listed NFT from a project.
Blur is investing tens of millions of dollars in airdrop incentives. Tweeted was “spending tens of millions to wreck the NFT market to control the floor.” “This is consuming your bags right now. They reduce the NFT market proportionately for every dollar they spend.
Accounts that shouldn’t have purchased dozens or more items from an accumulation put themselves in peril, according to Xero. Getting Blur tokens provides the incentive for dumping and placing low bids, so they are simply following the market’s instructions. Blur is “nuking your NFT prices” as a result of issues regarding the Blur model plus its effects on the larger NFT market.
Blur currently divides market participants into “mercenary” and “genuine,” undermines NFT prices, and creates a cyclical dumping issue, all of which could threaten the platform’s long-term viability and the general stability of the NFT market. However, the tweet makes no indication that Blur will alter its business model in response to the mounting criticism. With the release of Blur’s v2 protocol today, a new kind of NFT auction and related prizes are also included, along with lower transaction fees. The launch’s official twitter thread serves solely to emphasize how important it is to increase trade rewards.
By all of these market speculations, it can be said that blur has a very blurry speculation of the price crash. For all the investors and different market people, there are different speculations for all the market places. This can make it a very different place to be held by all of the market investors.
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