Some people became rich, some lost everything. An NFT marketplace called Blur surprised the crypto space with a launch on Valentine’s day, airdropping people millions of dollars. However, the price of the token suffered as a result. What exactly happened?
Blur’s launch explained
$BLUR is now LIVE
All traders across all marketplaces in the last 3 months, Care Package holders, and Creators are eligible for the airdrop.
You have 60 days to claim your BLUR ⏰ pic.twitter.com/AZynnHeIhz
— Blur (@blur_io) February 14, 2023
Blur began its marketplace in October 2022 with the promise of token rewards for traders and has already distributed “care packages” to customers in anticipation of future token allocations.
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Blur is proclaimed as an NFT marketplace for pro traders. The project raised $14 million and is backed by many investors (Paradigm, 6529, Cozomo Medici, and others).
“We started Blur because we wanted a faster platform for trading NFTs ourselves. None existed with the capabilities we needed, so we built it,” the company stated.
The launch was delayed, but still, it was a huge launch, resulting in over a $1 billion trading volume in less than 24 hours (this is more than Dogecoin or even Ripple). In the meantime, the price of the platform’s token dropped from $5 to less than $0.5 after many users dumped the airdropped tokens.
Blur (BLUR) token chart, source: coinmarketcap.com
The daily trading volume on Blur’s token is comparable to the company’s four-month trading volume ($1.2 billion) on their NFT marketplace, with wash trading excluded as stated in a tweet.
Since the launch of the NFT platform, traders have been eagerly anticipating the availability of the BLUR token. Blur’s cryptocurrency was supposed to be released in January, but the company has been airdropping it to collectors of Ethereum-based NFTs as “care packages” since October.
In October, Blur began offering its zero-fee marketplace to professional NFT traders. With $2.5 million traded in its first day, Blur is creeping up on the NFT marketplace leader OpenSea.
BLUR airdrop in numbers
Dune Analytics estimates that 360 million BLUR tokens have been airdropped to holders of “care package” tokens. Over 200 million BLUR, or over 57% of the token’s supply, have been claimed by traders in the first 12 hours despite having two months claiming period.
Blur aidrop distribution, source: twitter.com
This is what caused the massive selling pressure, putting millions of tokens on sale on many exchanges. BLUR has been simultaneously listed on more than 20 exchanges (both centralized and decentralized exchanges).
Some people report making thousands, or even hundreds of thousands of dollars in this airdrop. Keungz reported receiving 610658.73 BLUR tokens, which is approximately $550,000 at the current price.
Keungz’s tweet regarding Blur airdrop, source: twitter.com
“Machi Big Brother” told his Twitter followers he received a whopping 1847934.28 BLUR tokens, which is around $1.66 million.
This was definitely one of the most eye-catching events of 2023 as many people have become richer than they were before. However, naive investors and traders could have lost a lot of money if they bought at the launch at $5 per token.