In the world of NFTs, there has been a recent buzz about a new address, 9082D2 (0x90…fba9), that quickly climbed to the fifth position in the Blur leaderboard. However, the excitement was short-lived as it was soon revealed that the address had achieved its rank by relying on price manipulation tactics.
According to SD, founder of NFT derivatives NFEX, the manipulator behind the 9082D2 address usually bids for a collection of over 30-80 items and starts to increase their bid sharply with large amount size for a short period. This results in a number of other bidders increasing their bid price along with them, which is known as spoofing the market and is illegal in financial markets.
After a while, 9082D2 sells all their holdings to the remaining bidders in one go, making a profit and earning Blur points. The uninformed bidders are then left with bags of NFTs at inflated prices, which they often sell for a loss to get out of the risk. This creates a cascade effect in price, and the NFTs get passed on to many rounds of bidders, resulting in losses until they finally stabilize later on.
Many people have participated in blur farming without knowing who they are against. As a professional trader, I have been able to profit from anticipating market manipulators’ moves. In this thread, I’ll share some analysis on one particular manipulator.
— SD (@nfexdragon) March 25, 2023
The manipulator then comes back again and starts bidding on top projects such as clone x, doodles, pudgy penguins, and moonbirds. The Twitter user SD suggests that to profit from this, one should not bid along if they do not know who has been buying. If they see the manipulator start buying, they should buy along before they pump up the price and sell to them. After rounds of dumping happened, it’s always a good time to start bidding on these collections as likely the price is just oversold.
However, as a community, we need to fight against these bad players. The Twitter user SD urges readers to comment below if they find any other players with similar actions and to team up and protect ourselves from these manipulators.
In conclusion, the rapid rise of the 9082D2 address in the Blur leaderboard is a stark reminder that the world of NFTs is not immune to price manipulation tactics. As the NFT market continues to grow, it is important for buyers to be aware of such manipulations and work together to combat them.
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