The NFT market has become a hot topic in the crypto world, with NFTs being used to represent unique digital assets like artwork, music, and videos. However, a recent report by CryptoSlam highlighted some ominous activity in the market. Accordingly, CryptoSlam discovered a large number of shuffled NFTs related to the emerging market Blur.io, worth at least $577 million.
#CryptoSlam Suspicious wash trades worth $577 million detected #Vagueof NFT markets @azcoinnews https://t.co/cNlCbp105c
— Kyptos (@azcoinnews) February 26, 2023
Blur.io began airdropping its native token to users on Valentine’s Day, February 14th. CryptoSlam has since detected suspicious behavior, such as reselling NFTs for short periods of time near the price at which the asset was initially traded. This behavior suggests that some Blur users used different wallets to sell themselves NFTs in order to receive Blur Tokens (BLUR) and accumulate credits for the airdrop.
Scott Hawkins, a data engineer at CryptoSlam, claims that Blur has no mechanism to prevent such activity. As a result, the campaign artificially boosted sales across the NFT market. Traders have until April to accumulate listing points and bid on Blur, tracking the top contenders through its airdrop leaderboard. Then they will get BLUR via airdrop, which can also be sold on centralized and decentralized cryptocurrency exchanges.
Increased NFT sales — some of which have been identified by CryptoSlam as wash trades — helped Blur recently overtake rival OpenSea in sales. This achievement also lifted global sales to the highest level since January 2022, creating the illusion that the NFT market is recovering.
Hawkins claims that all of this activity is a by-product of Blur’s war with OpenSea, and that this token strategy artificially distorts real activity in the NFT. CryptoSlam has been monitoring the anomaly for the past week and spent a few days updating the wash trading detection algorithm applied retroactively. The data aggregator said its latest update could prevent future wash trading from being reflected in global data. CryptoSlam’s algorithm also flags individual wash transactions and wallet activity as suspicious.
This is not the first time CryptoSlam has taken action to remove wash trading from the NFT market. In 2022, CryptoSlam eliminates wash trading to protect NFT investors and provide the industry with much-needed clarity and trust in the data reported on CryptoSlam.
The NFT marketplace is being touted as the next big thing in the crypto world. However, a recent report by CryptoSlam highlights the need for caution and caution when investing in NFTs. Before investing in any digital asset, it is important to research and understand market dynamics.
- An investor dumped 1,010 NFTs on the Blur marketplace
- BLUR price drops 30% after Blur creator goes public
according to Kyptos