Blur offer incentives distort the market, resulting in NFT offer higher than “buy now” price

According to reports, the analysis shows that Blur’s bid incentives distort the market, resulting in the NFT offer being higher than the “immediate purchase” price, that is, the price offered by the buyer in the NFT market is higher than the asking price of the collection. If you want to buy Doodles NFT in Blur, the maximum bid for more than ten items in this series is 5.07 ETH (about $7900), and the “Buy Now” price is 5.03 ETH, as is the case for other series, including Bored Ape Yacht Club, Azuki and Moonbird NFT. Moonbird’s offer on Blur is higher than the asking price. When bidding on the listed items, the seller must accept the price before the transaction is completed, The buyer will trigger the transaction of “Buy Now” items. （The Block）

Interpretation of this information:

The article discusses the distortion of the NFT market due to the bid incentives offered by Blur. According to analysis, the offer price for NFTs on Blur is higher than the “immediate purchase” price, suggesting that the bid incentives are artificially inflating the market. For instance, if a buyer wants to purchase Doodles NFT on Blur, the maximum bid for more than ten items is 5.07 ETH, while the “Buy Now” price is 5.03 ETH. The same trend is observed across other series, such as Bored Ape Yacht Club, Azuki, and Moonbird NFTs. Particularly, Moonbird’s offer on Blur is higher than the asking price. The seller must accept the offered price before the completion of the transaction, and the buyer triggers the transaction of the “Buy Now” item.

This message provides insights into how bid incentives can distort the NFT market. Several factors can be attributed to the distortion of the market, such as artificially inflating prices, bidding wars between buyers, and the use of bots. In the case of Blur, the bid incentives seem to facilitate price inflation artificially, with the offer price being more than the “immediate purchase” price. As a result, buyers in Blur’s NFT market may end up paying more for an item than its actual value, leading to speculative bubbles and potentially distorting the market’s efficiency.

In conclusion, the analysis of Blur’s NFT market highlights the distortion of the market due to the bid incentives offered. The message implies that the use of bid incentives to facilitate price inflation can cause artificial distortion of the NFT market, leading to higher prices than the actual value of the item. Therefore, buyers must be careful when participating in such markets to avoid being caught up in bidding wars or overpaying for NFTs.