Blur’s [BLUR] future turns unsure as issues round wash buying and selling floor

• Wash commerce quantity on Blur equated to 34% of the full quantity on {the marketplace} until date
• Blur’s wash buying and selling tripled final month after it airdropped its native token BLUR

The ghost of wash buying and selling got here to hang-out the Non-Fungible Token [NFT] market but once more. For the fourth consecutive month in February 2023, the full NFT wash commerce quantity throughout completely different marketplaces elevated, as per a report by CoinGecko. The entire quantity in February jumped 126% to $580 million from the earlier month’s quantity of $250 million.

How a lot are 1,10,100 BLURs value right this moment?

Curiously, Blur [BLUR], which lately changed OpenSea because the dominant NFT market in gross sales quantity, accounted for 27% of the full wash buying and selling throughout February. Compared, OpenSea accounted for under 5% throughout the identical time interval.

The report added that Blur’s wash buying and selling tripled final month after it AirDropped its native token BLUR, which rewards customers on buying and selling exercise on the platform.

Blur must be clearer!

Wash buying and selling is a type of market manipulation that inflates commerce quantity and worth when buyers, individually or in organized teams, concurrently promote and purchase the identical belongings.

Blur’s loyalty program, like AirDrops, incentivizes buying and selling exercise on the platform. In consequence, it’s doable that some Blur customers bought NFTs to themselves whereas utilizing a number of wallets to purchase BLUR and earn factors for AirDrops.

Further knowledge from Dune revealed that the wash commerce quantity on Blur equated to 34% of the full quantity on {the marketplace} until date.

Nonetheless, it needs to be famous that even when the full quantity is adjusted for wash buying and selling, Blur will nonetheless occupy the lion’s share of the market. Whereas it stood at 74% for unadjusted quantity, its share when wash buying and selling transactions had been filtered out dropped to 69%.

NFT wash buying and selling accounted for 23.4% of the unadjusted buying and selling quantity as of February 2023. Nonetheless, it needs to be famous that there was a marked enchancment from January 2022 when the share of wash buying and selling was round 67%.

Is your portfolio inexperienced? Try the Blur Revenue Calculator

BLUR token faces warmth

On the time of writing, BLUR exchanged fingers at $0.56, per CoinMarketCap, with a market cap of over $232 million. It misplaced over 55% of its worth within the final 30 days.

Because of issues surrounding wash buying and selling, native token BLUR’s quantity plunged 70% during the last week, knowledge from Santiment revealed. The weighted sentiment, too, travelled alongside the detrimental path, suggesting that buyers had been cautious of its prospects.