TL;DR:
- NFT marketplace Blur conducted an anticipated BLUR token airdrop, with the top three wallets each claiming at least $1.5M worth of tokens.
- The top trader got over 3.2 million BLUR tokens, valued at about $1.93 million based on the current price of about $0.60 per token.
- The wallet that claimed that enormous stash of tokens is relatively new, created less than three months ago, and it has been incredibly active in the NFT space, trading massive sums of Mutant Ape Yacht Club and Otherside NFTs.
- A look at the trading activity from the wallet shows that the holder has been buying and selling loads of the same NFTs over and over again, suggesting wash trading or at least a coordinated effort to game the Blur trading model.
- The other top claimants are well-known collectors and social media personalities, including the pseudonymous Machi Big Brother, Keungz, and major Bored Ape Yacht Club trader Franklin.
- Blur offered up 360 million BLUR tokens through the airdrop, with that circulating supply giving the token a current market cap around $217 million.
- Nearly 260 million of the airdropped tokens have been claimed so far, or about 72%. BLUR shot as high as $5.02 per token when it first hit the market today but fell sharply.
Blur Token Airdrops: NFT Traders Flex their Tokens
NFT marketplace Blur recently held its anticipated BLUR token airdrop, with the top three wallets each claiming at least $1.5M worth of tokens. The top trader got over 3.2 million BLUR tokens, valued at about $1.93 million based on the current price of about $0.60 per token. The wallet that claimed that enormous stash of tokens is relatively new, created less than three months ago, and it has been incredibly active in the NFT space, trading massive sums of Mutant Ape Yacht Club and Otherside NFTs.
The activity in the top wallet shows that the holder has been buying and selling loads of the same NFTs over and over again, suggesting wash trading or at least a coordinated effort to game the Blur trading model. The sale prices aren’t high enough to raise suspicion, but the assets are being flipped at such frequency to generate enormous trading volume.
A look at the wallets of the second-highest claimant (2.97M BLUR, or $1.8 million) and third-highest claimant (2.5M BLUR, or $1.5 million) show numerous interactions with the top wallet, including back-and-forth batch sales of various NFTs via Blur. Again, it points to either wash trading from one person or group across multiple wallets, or a coordinated effort. It’s unclear who owns these wallets, but they’re all intertwined in what appears to be a large-scale and successful attempt to manipulate the Blur airdrop, surely driving up Blur’s marketplace trading volume in the process.
Blur offered up 360 million BLUR tokens through the airdrop, with that circulating supply giving the token a current market cap around $217 million. Nearly 260 million of the airdropped tokens have been claimed so far, or about 72%. The BLUR token shot as high as $5.02 per token when it first hit the market today but fell sharply.
The other top claimants are well-known collectors and social media personalities, including the pseudonymous Machi Big Brother, Keungz, and major Bored Ape Yacht Club trader Franklin. The involvement of these prominent figures may create hype around the BLUR token.
Wash trading?
Since launching 4 months ago, 146,823 users have traded $1.2 BILLION dollars worth of NFTs on Blur (wash trading excluded).
— Blur (@blur_io) February 14, 2023
This growth is breathtaking and was only possible with the support of the Blur community. pic.twitter.com/wZtj5Ukc1l
It would seem Blur is well aware of wash trading on their platform as a tweet issued by the company on their Twitter all but confirms the practice. It’s important to note that wash trading can have negative impacts on the marketplace, and some would argue that it is unethical. For one, it can artificially inflate trading volume and market liquidity, making it appear as though the market is more active and attractive than it actually is. This could potentially mislead new traders into thinking that the marketplace is more popular than it really is, leading them to make poor investment decisions.
Furthermore, wash trading can lead to price manipulation, as traders who engage in these practices can artificially pump up the price of a particular asset or token through coordinated buying and selling. This can make it difficult for genuine traders to make profits, as they may be unaware that the price has been artificially inflated.
That being said, wash trading is not necessarily illegal, although it is often frowned upon. Regulators have been cracking down on such practices in the cryptocurrency space, and the use of such practices could lead to regulatory penalties or other consequences.
Despite the potential drawbacks, wash trading has become an increasingly popular tactic for traders seeking to maximize their profits in the NFT market. It remains to be seen how long these practices will be tolerated, or if regulators will take further action to limit them in the future.
In conclusion, the BLUR token airdrops have generated significant buzz in the NFT market, with some traders benefiting greatly from the airdrop. The use of wash trading practices by some traders has led to concerns about price manipulation and the ethics of such practices in the marketplace. It’s important for traders to be aware of the potential risks and drawbacks of such tactics and to make informed decisions when trading NFTs. As always, it’s essential to conduct thorough research and due diligence before making any investment decisions in the cryptocurrency space.
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