Several anonymous #investors in the #CryptoCommunitys shared their stories of losses on the Blur project, where the main reason for failure was a misunderstanding of trends in the #NFT market. They admitted that they did not expect the Blur ($BLUR
) team to switch their attention to the new #Blast project. During the discussion, the problems with Magic Eden and losses on Pudgy Penguin and Mad Labs were also touched upon.
Investors emphasized that the lack of experience at NFT played a key role in the losses. Although there were a few purchases made during the boom in the NFT market, there was no deep understanding. Based on blockchain analysis data, investors purchased Blur #tokens , which ended up being a mistake.
The main reasons for the losses are named 2 factors: overestimation of the recovery potential of the NFT market, which turned out to be much weaker than expected, and mistakes in the choice of the team. Blur was initially seen as a promising project capable of entering the NFT market to compete with Magic Eden. However, the team instead launched an Ethereum Layer 2 solution, which came as a surprise to many retail investors.
After that, the developers practically stopped updating the Blur platform itself, which created a sense of abandonment for the project. Mining and staking proved ineffective, and the team shifted focus to other areas, which made investors think about the importance of making the right choices.
An important lesson for everyone was the comparison with Magic Eden, where the team's direction remains more predictable. Blur's valuation at the time of investment seemed undervalued, as the fully diluted valuation (FDV) of the project was less than $1 billion, while others had tens of billions. However, this “made-up” undervaluation eventually led to significant losses, which was an important lesson learned.