A Prolific Trader Tricks Competitor on NFT Marketplace
A series of transactions on the NFT marketplace Blur has caught the attention of Crypto Twitter and raised concerns about legality. Hanwe Chang, a trader on Blur, tricked a competitor into buying Azuki NFTs at an inflated price, resulting in a profit of 800 Ethereum (around $1.5 million). Blur, a relatively new NFT marketplace, gained popularity for its gamified incentives that reward users with tokens. Profile picture NFTs, including Azuki, have unique qualities that impact their value. Chang likely duped an unsuspecting trader by placing bids on his own NFTs, taking advantage of bots that were copying his bids.
Key Points:
- Hanwe Chang tricked a competitor on the NFT marketplace Blur into buying Azuki NFTs at an inflated price.
- Blur surged in trading volume due to gamified incentives that reward users with tokens.
- Azuki NFTs with specific background color sold for a massive markup, raising questions of legality.
- Chang likely duped an unsuspecting trader by placing bids on his own NFTs to outsmart bots.
- There is a debate on the legality of Chang’s actions, with some claiming it is illegal market activity.
The Controversy and Legal Questions
A Raving Ape described the interaction as “an epic case of PvP” in the NFT market, referring to player versus player confrontations in video games. However, not everyone was entertained. The apparent owner of the bot, “elizab.eth,” claimed that the funds were stolen from their bot and offered a bounty to discuss the return of the funds. Pseudonymous NFT influencer Dave III called Chang’s actions illegal market activity and warned against bragging about committing fraud. While some defended Chang’s actions, others argued that it was indeed illegal. Delphi Labs General Counsel Gabriel Shapiro suggested that there may be legal claims to retrieve the funds, but acknowledged that the legal issues are nuanced.
Hot Take
This incident on the NFT marketplace Blur has ignited a debate on the ethics and legality of certain trading practices. While some see it as a clever trick to outsmart bots, others view it as fraudulent market manipulation. The outcome of this situation will likely have implications for the future of NFT trading and the need for clearer regulations in the crypto space.
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