Scott Melker outlines what happened to Blur's ( BLUR-USD ) non-fungible token (NFT) marketplace.
And now in our next segment, we have a how not to invest. Hit it.
How not to invest. How not to invest.
And the story is Blur NFT marketplace to shut down next month as trading slows. If you remember, Blur at one time I think was the largest marketplace for buying and selling NFTs. And not only that, they had a protocol called Blend that allowed you to take a loan on your NFT.
Don't do that.
Right? This might be a slightly forced how not to invest, but the point was there's a token associated which has dumped, uh, you know, I have no idea. 95, 99, whatever percent from the top to the bottom. Tale as old as time in crypto also. But you were able to take your extremely volatile, overpriced and overvalued board apes and friends and put them into this thing and take a loan against them, which obviously meant you were going to get liquidated and lose that.
There are a lot of really good ideas in crypto. I'm not saying that NFTs were a bad idea, but I think it was very clear at the time that NFTs were a massive bubble.
I mean, that's reflected here the in this article, the block figures show monthly marketplace volume falling from approximately 1.43 billion in March 2023, billion with a B to below 7 million in March 2026.
That is a monster drawdown. So first of all, the token itself on how not to invest was largely pumped by the promise of rewards and airdrops and kind of wash trading volume and all these things. So why would you have owned that in the first place? The mistake there is treating rewarded activity as proof of durable demand. But then taking all of that and taking NFTs and buying an asset that was obviously in a bubble and overvalued and then taking a loan against it. Man, we have learned a lot of cautionary tales in crypto.
