Traders Blame Blur For The NFT Market Crash
The recent downturn in the non-fungible token (NFT) market has led to a decrease in floor prices for popular collections like Bored Ape Yacht Club. Many investors and influencers are pointing fingers at NFT marketplace Blur for the market crash.
- NFTs such as Azuki, Pudgy Penguins, and Bored Ape Yacht Club have seen their floor prices drop over 50%.
- Blur is a non-fungible token marketplace and data aggregator that launched in October 2022.
- Investors can buy blue-chip NFTs with a smaller upfront payment, similar to a down payment on a house.
- Blur’s incentivized trading model has been blamed for the market downfall.
- Whale traders are losing their funds or indirectly withdrawing other investors’ funds from Blur’s NFT auction pool.
Did Blur Kill The NFT Market?
Blur’s incentive trading model is beginning to show negative results. Traders and influencers have highlighted the negative effects, with some claiming that Blur is intentionally sinking the NFT market. The incentivization to sell and bid low comes from obtaining Blur tokens, leading to risky behavior among traders.
NFT Marketplaces are the ones tanking the NFT market
NFT influencer Xero agrees with the sentiment that NFT marketplaces, like Blur, are responsible for the market downturn. The marketplace wars are focused on having the lowest floor prices, as controlling the floor prices means controlling the market and future volume.
Blur Refutes Market Pollution Claims
Blur has denied any responsibility for the NFT floor price drop. The founder, Tieshun “Pacman” Roquerre, stated that this is not the first market cycle NFTs have faced and pointed to the controversial launch of the Azuki Elementals collection as a factor in removing liquidity from the market.
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