NFT Market Distorted by High-Value Traders Using Token Incentive Returns

03/01/2023 23:50 • AI Insights • 113 views

According to reports, CryptoSlam, the NFT data analysis platform, said that about 1% of high-value NFT traders promoted most of the transactions in the Blur market. They obtained token incentive returns in this way. This behavior distorts the NFT market and puts traders at risk. Although CryptoSlam did not disclose the relationship between Blur’s high trading volume and its airdrop token trading data, it pointed out that the proportion of OpenSea’s sales volume was relatively low. The data showed that from February 14 to February 27, there were only 6.6 million dollars of sales volume, accounting for about 2.5% of OpenSea’s total trading volume of about 249 million dollars, which means that there are more organic NFT transactions on the OpenSea platform. （decrypt）

CryptoSlam: About 1% of high-value NFT traders drive most of Blur’s transactions

Analysis based on this information:

CryptoSlam, a data analysis platform for Non-Fungible Tokens (NFTs), released a report pointing out the distortion emerging in the NFT market. According to the report, only 1% of high-value NFT traders have been promoting most of the transactions in the Blur market, by using token incentive returns as a way of obtaining profits. Nonetheless, this behavior could put them at risk, as well as distorting the market. The report also stated that the proportion of sales volume on other platforms such as OpenSea was relatively low.

The report from CryptoSlam revealed how a small group of high-value NFT traders could be manipulating the market in the Blur platform. The report points out that these traders found a way of obtaining token incentive returns that distort the market’s transaction value. This could cause a potential risk for traders as their transactions could be dependent on token incentives rather than the actual value of the NFTs. Additionally, the report suggested that besides the distortion of the market, it could also be at risk if these traders suddenly decide to short the market.

The report from CryptoSlam also showed that OpenSea’s sales volume has been relatively low compared to other platforms, indicating that there are more organic NFT transactions happening on the platform. The data revealed that the sales volume for the OpenSea platform from February 14 to February 27 was only 6.6 million dollars, representing just 2.5% of the overall trading volume of about 249 million dollars. This implies that there are more legitimate transactions happening on OpenSea, which are not being affected by token incentives or mass manipulation.

In conclusion, the report from CryptoSlam highlights the distortion of the NFT market caused by a small group of high-value NFT traders using token incentives as a way to promote transactions on the Blur platform. This behavior could lead to market manipulation and also jeopardize the crypto traders’ returns, who do not use token incentives. Meanwhile, it reported that OpenSea appears to be a reasonably stable platform with legitimate transactions happening, as its sales volume has been relatively low. Therefore, a careful analysis of NFT marketplaces is important for making a wise investment decision.

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NFT Market Distorted by High-Value Traders Using Token Incentive Returns

CryptoSlam: About 1% of high-value NFT traders drive most of Blur’s transactions

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