Blur.io ’s native governance token fell 87% after the Blur.io marketplace unlocked 360 million previously airdropped tokens.
At press time, BLUR had fallen over 80% to $0.63 from an all-time high of $5.01, reached just before the unlock.
Blur Admits to NFT Wash Trading
According to Ethereum News, some BLUR holders singled out Blur.io’s silence on the token’s tokenomics as the reason behind the collapse.
Blur/USD Price Chart Source: CoinMarketCap
Blur later acknowledged the presence of wash trading on the platform, i.e., artificially inflating the value of a financial instrument by buying and selling it simultaneously. It said it had processed $1.2 billion in non-wash-trade volumes since its launch in October 2022.
The pro-NFT marketplace awarded BLUR tokens in care packages airdropped to traders and bidders in the last four months.
Blur.io airdropped its first round of care packages to early traders who migrated from rival marketplaces in Oct. 2022 and then airdropped packages to traders and bidders in the second and third rounds. Recipients of the latter airdrops received more tokens than earlier ones.
Users Can Look to Rarible DAO for Incentive Structure
Despite user claims, Blur has published a schedule for unlocking a further 2.64 billion BLUR. The project will release 39% of BLUR to the DAO treasury within the next four years.
Blur.io Treasury Vesting Schedule