NFT market and aggregator platform, Blur, has introduced its Season 2 BLUR airdrops, which is able to see 300 million further BLUR tokens added to the circulating provide. Nonetheless, this transfer has raised issues in regards to the potential influence on the token’s worth and the steadiness of the platform.
The Affect of the Airdrops
The Season 2 BLUR airdrops will double the present circulating provide, resulting in a better supply-to-demand ratio, which may put downward stress on the token’s worth. The elevated provide may lower the demand for the token, as buyers could go for extra steady alternate options. Specialists warn that this may increasingly end in a major drawback for the platform, which can wrestle to keep up its present place as a number one NFT market.
You will need to notice that Degree 1 customers who participated within the airdrops could not really feel the influence as a lot as Degree 2 customers. The latter group could have purchased the token primarily based on excessive commerce quantity and thought that the undertaking was stable, which is probably not the case. They could have finally dumped the token, inflicting a major downward stress on the token’s worth.
How the Airdrops Work
Blur prospects shall be assigned a “loyalty rating” primarily based on their interplay with and dedication to the buying and selling platform. Consumers and sellers who chorus from utilizing every other NFT market will obtain a 100% loyalty rating. A person’s loyalty rating, together with the amount of NFTs they checklist, will decide what number of BLUR tokens they’ll in the end acquire in a later airdrop.
Gamifying the Course of
The Season 2 airdrops shall be distributed to merchants in a extra fixedly gamified program, in response to the corporate. Which means prospects shall be incentivized to stay dedicated to the buying and selling platform to obtain extra tokens. Nonetheless, this is probably not sufficient to make sure the platform’s success, given the challenges posed by the doubled circulating provide and potential worth drops.
Blur’s Present Standing
Blur is at the moment valued at $1 billion, and its every day buying and selling quantity grew nearly 4X after it launched its native token, BLUR. The platform has even overtaken the once-untouchable competitor, OpenSea, as the preferred Ethereum NFT buying and selling platform by buying and selling quantity. Nonetheless, Blur’s success is probably not sustainable if the worth of the BLUR token continues to drop.