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June 15, 2024
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BLUR Token’s Season 2 Airdrops, But Is It Worth The Risk?

The post BLUR Token’s Season 2 Airdrops, But Is It Worth The Risk? appeared first on Coinpedia Fintech News

NFT marketplace and aggregator platform, Blur, has announced its Season 2 BLUR airdrops, which will see 300 million additional BLUR tokens added to the circulating supply. However, this move has raised concerns about the potential impact on the token’s value and the stability of the platform.

The Impact of the Airdrops

The Season 2 BLUR airdrops will double the current circulating supply, leading to a higher supply-to-demand ratio, which could put downward pressure on the token’s price. The increased supply could decrease the demand for the token, as investors may opt for more stable alternatives. Experts warn that this may result in a significant problem for the platform, which may struggle to maintain its current position as a leading NFT marketplace.

It is important to note that Level 1 users who participated in the airdrops may not feel the impact as much as Level 2 users. The latter group may have bought the token based on high trade volume and thought that the project was solid, which may not be the case. They may have eventually dumped the token, causing a significant downward pressure on the token’s price.

How the Airdrops Work

Blur customers will be assigned a “loyalty score” based on their interaction with and commitment to the trading platform. Buyers and sellers who refrain from using any other NFT marketplace will receive a 100% loyalty score. A user’s loyalty score, in combination with the quantity of NFTs they list, will determine how many BLUR tokens they will ultimately gain in a later airdrop.

Gamifying the Process

The Season 2 airdrops will be distributed to traders in a more fixedly gamified program, according to the company. This means that customers will be incentivized to remain committed to the trading platform to receive more tokens. However, this may not be enough to ensure the platform’s success, given the challenges posed by the doubled circulating supply and potential price drops.

Blur’s Current Standing

Blur is currently valued at $1 billion, and its daily trading volume grew almost 4X after it released its native token, BLUR. The platform has even overtaken the once-untouchable competitor, OpenSea, as the most popular Ethereum NFT trading platform by trading volume. However, Blur’s success may not be sustainable if the value of the BLUR token continues to drop.

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