The founder of Blur, Tieshun Roquerre, known as Pacman, has come forward to defend the marketplace amidst an extended period of declining prices in the NFT market. Responding to speculation on Twitter regarding Blur’s influence on the market slump, Pacman addressed the situation and clarified their role in the market dynamics.
Pacman took to Twitter on July 5 to address the concerns, stating, “Since our launch on October 22, some floor prices have gone up, some have gone down.” He pointed out that floor prices had experienced simultaneous increases when Blur injected liquidity through their airdrop. Conversely, floor prices fell collectively when $40 million of liquidity was removed during the Azuki Mint incident. Pacman emphasized that market movement is predominantly driven by liquidity rather than any particular platform’s actions.
The NFT market has been in a subdued state for over a year, especially when compared to the skyrocketing prices of 2021. Even renowned collections have yet to be immune to the slump. NFT Price Floor data reveals that the floor price of Yuga Labs’ Bored Ape Yacht Club currently stands at 28 ETH (approximately $53,000), the lowest it has been in over 18 months and less than half of its value at the beginning of the year. Similarly, the floor price of Azuki, another popular collection, experienced a significant decline due to a flawed NFT launch by its creator, Chiru Labs.
Blur, the Paradigm-backed marketplace catering to professional traders, faced criticism in both instances. Lior Messika, an investor in Yuga Labs through venture firm Eden Block, pointed out that NFT whales who were once identified as “collectors” now consider themselves traders or even “Blur farmers,” suggesting that the space has been distorted by the actions of a few traders driven by fear and greed. Brad Kay, a research analyst at The Block Research, attributed a substantial portion of the Azuki sell-off to Blur’s lending platform.
According to data from Block Research, Blur has undeniably dominated trading volumes in the NFT market, accounting for 70% of NFT marketplace volume on Ethereum. Earlier this year, it was reported that the company is in the process of raising funds at a valuation of one billion dollars.
Addressing the criticism, Pacman mentioned in his tweet that negative sentiments tend to arise when asset prices decline, while the root causes of price increases are often overlooked. He acknowledged that such criticism is part of the cost of doing business and emphasized the need to consider the broader perspective.
Despite the recent sell-offs in major collections, data from The Block Research suggests that the overall NFT market has remained relatively stable over the past year. The combined market capitalization of the top 20 NFT collections, calculated by multiplying the floor price by the supply, reflects a consistent trend in line with the market’s previous performance.
Pacman, the founder of Blur, has stepped forward to defend the marketplace against allegations of causing the market slump in NFT prices. While acknowledging the influence of liquidity on market dynamics, Pacman highlights the need for a balanced perspective when evaluating the performance of assets. As the NFT market continues to evolve, it remains to be seen how various factors, including platforms like Blur, will shape its future.