Thread
The Blur marketplace and the hyper-financialization of the NFT market:
Where our space is heading 🧵👇
(1/19)
Where our space is heading 🧵👇
(1/19)
A few days ago, we had the rare opportunity to attend an AMA with Pacman, one of the co-founders of Blur.
@frankdegods interviewed him on the occasion of DeGods bridging to Ethereum:
twitter.com/i/spaces/1jMJgLdQDZqxL
(2/19)
@frankdegods interviewed him on the occasion of DeGods bridging to Ethereum:
twitter.com/i/spaces/1jMJgLdQDZqxL
(2/19)
And it's worth listening to what he had to say.
Because few other individuals in our space are shaping the NFT market in the way Pacman and his marketplace Blur are.
Here's his plan and his world-view:
(3/19)
Because few other individuals in our space are shaping the NFT market in the way Pacman and his marketplace Blur are.
Here's his plan and his world-view:
(3/19)
If you listen to the conversation for just a few minutes, one thing becomes very clear:
What Blur wants is the hyper-financialization of the NFT market.
@cobie once called it alt-coins with pictures. And he was right.
But what does that mean in detail?
(4/19)
What Blur wants is the hyper-financialization of the NFT market.
@cobie once called it alt-coins with pictures. And he was right.
But what does that mean in detail?
(4/19)
1️⃣ From non-fungible to fungible:
Step 1 was the abolition of any rarity- or trait-based bids. Now they're thinking about adding them, but it is already too late imo.
Outside of super rare NFTs (Spirit Azukis, trippy fur Apes etc) all NFTs are now considered floor NFTs
(5/19)
Step 1 was the abolition of any rarity- or trait-based bids. Now they're thinking about adding them, but it is already too late imo.
Outside of super rare NFTs (Spirit Azukis, trippy fur Apes etc) all NFTs are now considered floor NFTs
(5/19)
Nobody is interested in certain traits anymore, outside the top 1% of a collection everything is considered floor or in other words: Fungible.
Just as 1 ETH = 1 ETH, outside of the Top 1% of each collection, the same applies to NFTs: 1 Moonbird = 1 Moonbird, etc.
(6/19)
Just as 1 ETH = 1 ETH, outside of the Top 1% of each collection, the same applies to NFTs: 1 Moonbird = 1 Moonbird, etc.
(6/19)
2️⃣ Power in the hands of few:
Pacman kept highlighting the role of airdrop farmers - or as he would say - "market makers" in the AMA.
We know them from the crypto currency market for example. A few, large firms are responsible for the majority of the liquidity.
(7/19)
Pacman kept highlighting the role of airdrop farmers - or as he would say - "market makers" in the AMA.
We know them from the crypto currency market for example. A few, large firms are responsible for the majority of the liquidity.
(7/19)
This is what Blur would like to see in the NFT market as well.
And it is already a reality to some extent. Through Blur airdrop farming, whales like @machibigbrother are already responsible for a high percentage of the total trading volume.
(8/19)
And it is already a reality to some extent. Through Blur airdrop farming, whales like @machibigbrother are already responsible for a high percentage of the total trading volume.
(8/19)
The problem is that these people aren't really market makers in the first place.
The main difference is that airdrop farmers (unlike market makers) do not have the goal of making profits from their trades.
The only purpose is airdrop farming. This is not sustainable.
(9/19)
The main difference is that airdrop farmers (unlike market makers) do not have the goal of making profits from their trades.
The only purpose is airdrop farming. This is not sustainable.
(9/19)
3️⃣ 0.5% royalties:
Blur was also the first major marketplace to basically abolish royalties.
This is the only way to keep the so-called "market makers" in line.
Even with 0.5% royalties, the largest airdrop farmers are already making millions in losses:
(10/19)
Blur was also the first major marketplace to basically abolish royalties.
This is the only way to keep the so-called "market makers" in line.
Even with 0.5% royalties, the largest airdrop farmers are already making millions in losses:
(10/19)
This again corresponds to the hyper-financialization of the market.
While the collections with the most trading value earn the same or more royalties than before (due to inflated volume) it’s the small creators that get f*cked over…
(11/19)
While the collections with the most trading value earn the same or more royalties than before (due to inflated volume) it’s the small creators that get f*cked over…
(11/19)
We see a value accumulation in the highest cap collections at the expense of the broad majority.
If we want to grow as a space and attract creators & their audiences to our space, however, taking away their ability to make a living may not be the best way to do it.
(12/19)
If we want to grow as a space and attract creators & their audiences to our space, however, taking away their ability to make a living may not be the best way to do it.
(12/19)
*️⃣ Reading the comments under the latest Blur tweet, it is immediately clear that the majority of people are not happy with this kind of hyper-financialization.
Now, you can either say these people are all dumb and just don't get it, or you get to the real point.
(13/19)
Now, you can either say these people are all dumb and just don't get it, or you get to the real point.
(13/19)
And the real point is that the NFT space is at a crossroads.
Blur wants to make the NFT space basically a crypto currency trading market. Fungibility between NFTs.
The projects & JPEGs themselves don’t really matter anymore, just look how small they already are:
(14/19)
Blur wants to make the NFT space basically a crypto currency trading market. Fungibility between NFTs.
The projects & JPEGs themselves don’t really matter anymore, just look how small they already are:
(14/19)
As in shitcoins, it's all about the quick 100x.
Sometimes it works, sometimes it doesn’t, the majority goes to zero sooner or later.
Blur calls itself the "marketplace for pro-traders" for a reason. They want to put day-traders first.
(15/19)
Sometimes it works, sometimes it doesn’t, the majority goes to zero sooner or later.
Blur calls itself the "marketplace for pro-traders" for a reason. They want to put day-traders first.
(15/19)
Opposed to this is the second perspective on our space:
For many people NFTs projects are not only a pure trading object (even tho that has always played a role), but it is also about other things like community and creator empowerment.
(16/19)
For many people NFTs projects are not only a pure trading object (even tho that has always played a role), but it is also about other things like community and creator empowerment.
(16/19)
That doesn't mean that one is right and the other is wrong, but we can't have both.
@frankdegods said in the AMA that he doesn’t think Pacman has bad intentions.
And I don't believe that either.
(17/19)
@frankdegods said in the AMA that he doesn’t think Pacman has bad intentions.
And I don't believe that either.
(17/19)
I think the actions of him and Blur just come from a fundamentally different view of the NFT space.
Pacman sees all this as a sign that our space is becoming more professional and mature.
We have to decide how we see it.
(18/19)
Pacman sees all this as a sign that our space is becoming more professional and mature.
We have to decide how we see it.
(18/19)
Thanks for reading! ❤️
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TheJPEGGallery ⌐◨-◨ @thepropgallery
·
Apr 3, 2023
Nice thread Wale