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Blur founder calls out Big Brother: He is providing liquidity, not faking trading volume; Blur expected to launch on Switch

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Blur founder calls out Big Brother: He is providing liquidity, not faking trading volume; Blur expected to launch on Switch

The issue of centralized trading volume in Blur's NFT transactions has sparked discussion recently, with about 20% of Blur's trading volume coming from only 15 wallets, and approximately 50% from fewer than 300 wallets. Today, Blur's founder, Pacman, explained on Twitter that the high trading volume actually comes from market makers and contributes to the overall ecosystem.

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Blur Founder: High Trading Volume Comes from Market Makers, Not Wash Trading

Pacman stated that the vast majority of trading volume in traditional and token markets comes from a few market makers, less than 10 in number. However, the trading behavior of market makers differs from that of NFT collectors. The recent discussion in the crypto community has been sparked by the scarcity of market makers in the NFT market before the launch of Blur.

Pacman cited examples such as Huang Li-Cheng, also known as "Big Brother," and NFT whale Franklin, as the first market makers with a certain trading volume. They are likened to Jump Trading and Jane Street on Wall Street, both well-known market-making institutions. As the market matures, more market makers are expected to join in.

At the same time, Pacman emphasized that market-making is not a practice of inflating trading volume. While these market makers provide liquidity, they earn profits based on the spread between buying and selling prices, which is the difference in prices, and also incur royalty costs on each transaction.

"The participation of market makers allows more users to enter this market. They provide liquidity, making it safer for users to purchase new NFT projects. While bringing trading volume, they also increase the income of creators," Pacman said.

Differences Between Blur Market Makers and Traditional Market Makers

Although Pacman believes that market makers can bring many benefits to the NFT market, Blur's token mechanism gives it a unique market-making model. Sugar Shane, a market maker at the Chicago Options Exchange, explained the differences in Blur on his Twitter.

Sugar Shane stated that the market makers on Blur are not actually market makers because they do not understand the need for a certain spread between buying and selling. However, this phenomenon arises because the market makers on Blur expect future BLUR airdrops to compensate for market-making losses, resulting in tight bids on Blur.

Therefore, although Blur's market-making behavior may seem foolish to outsiders, there is a rationale behind it. It remains to be seen whether these market makers, who incur losses due to gas fees and royalties, can turn their losses into profits after the second wave of BLUR airdrops in April.

Blur to Launch Switch Version

In addition to the discussion on market makers mentioned above, Pacman also responded to a question from a netizen, stating that Blur will be released on mobile devices shortly and will also be available on the Nintendo Switch.

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