A wallet address that received a large amount of BLUR tokens through airdrops has sold off 3.2 million tokens, raising questions about the impact on the $BLUR market and the motives behind the move.
The wallet address known as “0xD5eE” has made a significant move by selling off approximately 3.2 million BLUR tokens, which hold a value of $1.15 million.
This wallet address had previously attracted attention due to its massive accumulation of BLUR tokens received through airdrops from Blur, an NFT marketplace that competes with OpenSea.
Blur’s token distribution strategy for NFT traders
Blur is an NFT marketplace launched in October 2022 with the promise of token rewards for traders. The platform claims to be the “marketplace for pro traders” and offers features such as price alerts, bid history, and advanced filters.
Blur has distributed its governance token, BLUR, to eligible Ethereum NFT traders through a series of airdrops. The first wave was made available to traders who had used a competing marketplace six months before Blur’s launch.
The second wave was for Blur users who listed their NFTs for sale on the platform through November. The final wave was for traders who bid on NFTs through Blur.
The airdrop recipients received “care packages” that represented their token allotments. The care packages could be opened from February 14, 2023, after a delay from the original date of January 31, 2023.
According to Blockchain data, BLUR has over 33,000 unique wallet holders as of Wednesday morning.
The airdrop whale that sold off BLUR tokens
The wallet address “0xD5eE” is one of the top recipients of BLUR tokens through the airdrops.
According to the on-chain analysis platform Lookonchain, the wallet address sold approximately 3.2 million BLUR tokens on Wednesday, which amounts to about 1.6% of the total supply of BLUR.
The reason behind this move is unclear, but there are a number of plausible explanations.
One possibility is that the wallet owner decided to cash out after BLUR’s recent surge in value following Upbit, South Korea’s leading exchange, announcing a new trading pair involving $BLUR and the Korean fiat currency, KRW.
A second hypothesis is that the wallet owner was influenced by the movement of BLUR tokens by Wintermute Trading, a market maker that provides liquidity to crypto exchanges and platforms.
CoinGape previously reported that Wintermute trading moved large amounts of BLUR tokens in January, raising speculation of a possible dump.
A third possibility is that the wallet owner lost faith in Blur’s project or tokenomics and decided to exit the market.
Market Reaction and Outlook for $BLUR
Since reaching its all-time high of $45.98 on February 13, 2023, the value of $BLUR has witnessed a significant decline of 99.22%, currently priced at $0.3554.
The recent price movement of -$0.009268 (a 2.54% decrease) and the 24-hour trading volume of $62,067,114 (a 48.02% decrease) indicate a period of consolidation and uncertainty.
Furthermore, the total value locked in BLUR tokens, as seen on Defilama at the time of publication, is $150.58 million.
As market participants closely monitor these developments, they will be keen to observe how the $BLUR market responds in the coming days and weeks.
