NFT market manipulation? CryptoSlam claims suspicious activity on Blur
Despite its recent success, Blur’s journey to becoming the largest NFT marketplace is far from over, and measuring its current and future success is a complicated matter.
NFT marketplaces are currently embroiled in intense competition for customers, with companies slashing fees and royalties to attract and retain users. This is an important source of income for many of his NFT creators who feel abandoned by the market that once supported them. This “race to the bottom” is causing significant disruption to the entire NFT ecosystem.
read more: Why we need more NFT loyalty and a better market
Blur volume real?
Blur has surpassed OpenSea in total revenue through its platform, but its data has sparked debate about its true significance.
One of the factors contributing to Blur’s success is its rewards program that rewards traders with points for listing and bidding on NFTs. These points can be redeemed for BLUR tokens and you will receive tokens based on the number of points you have accumulated.
With no market fees or royalties, the only obstacle preventing users from purchasing their own listings and gaming the system and earning tokens in a separate wallet is the need to pay for gas.
However, last month, CryptoSlam, a tracker of NFT sales data, said: claimed This is exactly what happened with Blur. In an email to subscribers, CryptoSlam said only his 1% of high-value traders are responsible for the majority of trading activity on the platform.
As a result, CryptoSlam took action and removed hundreds of millions of dollars of Blur transactions from their data, citing “market manipulation”. We then implemented a modern algorithm that filters out “suspicious” sales.
Between February 14th and February 25th, CryptoSlam identified over $577 million in NFTs wash traded on its platform.
According to CryptoSlam, Blur’s sales data “misrepresents” the NFT market. A potentially artificial sales surge pushed industry-wide sales to their highest level since January 2022, as the market rebounded after a significant drop in activity over the past year. Some people think there is.
Scott Hawkins, data engineer at CryptoSlam, said in an interview with Forkast:
Additionally, OpenSea has more users than Blur, and its user base is made up of a smaller group of more active traders. Blur has only 113,886 users in the last 30 days compared to 294,146 for OpenSea. Critics also claim that a small portion of Blur’s wallet is responsible for the bulk of the transactions.
Future of Blur
Details of how the BLUR token will be valued in the future are unknown, and it is unclear how it will increase in value over time. Currently, BLUR operates as a governance token, but since Blur is a centralized entity, it will have to gradually hand over control to the token holders of the newly established DAO. This may be why US users were excluded from the airdrop despite the fact that the token is available on major US exchanges like Coinbase.
The Blur DAO will be responsible for managing key aspects of the platform, such as establishing the value generation and distribution of the protocol. This could include determining the protocol fee rate (up to 2.5%) after 180 days and awarding financial grants to further develop the market. These choices will shape the future growth of the platform and will play a key role in determining whether Blur can effectively compete in the market now and in the near future.