How to Choose Best NFT Platform to Trade
NFT Market Gets A Boost From $400M Blur Airdrop
Blur is an NFT marketplace recently conducting a $400 million airdrop of its native token, BLUR. The airdrop rewarded active NFT traders and also comes as a welcome stimulus package to an industry that has suffered a steep year-over-year decline in trading activity.
Users have been collecting $BLUR in the form of airdrops from the platform over the last few months. The first airdrop rewarded those who traded NFTs on Ethereum in the six months before Blur’s October launch. The second airdrop consisted of $BLUR care packages for platform users who listed NFTs on Blur from October 19 to December 5. And lastly, the third one aimed at traders who placed bids on Blur. The system has immensely rewarded users who keep up with the platform.
How to pick the right platform token to invest in?
Blur is not the first to issue platform tokens to users. Speculators and web3 enthusiasts also use such practices as a source of income or bounty hunting for airdrop rewards. However, these opportunities set high barriers to participation as it requires meeting a certain threshold, like trading, listing, and bidding NFTs, meaning a requirement of assets.
So, how can normal users like us participate in these opportunities?
We cannot catch up on all the genesis campaigns and are eligible for airdrops. Purchasing and investing in tokens from the secondary market is a more possible way. And here, we can look at what factors we can consider in picking the right token.
Utility
The utility of an NFT platform token is a crucial factor to consider when investing. Look for tokens with a strong use case that are necessary for the platform’s operations.
Take the $BLUR token as an example. First, the token would act as a governance token, allowing holders to decide the platform’s development, allowing the platform to edge its way toward a more decentralized future.
Second, the $BLUR token also takes a unique approach to the royalties debate with its token dynamics, as platform users who uphold creator royalties are rewarded with more of the token. Driving users to uphold creator royalties with monetary incentives might not be the best method. Still, it allows users to think of it more reasonably, especially professional traders.
And lastly, the token is also rewarded from users’ biddings and listings, which is also a core utility of the token.
The more utility the token has, the more demand there may be for it, which would increase its value.
Tokenomics
The tokenomics of an NFT platform token is another critical perspective to consider when investing. Look for tokens with a clear and transparent distribution model, with a fixed or decreasing supply.
From the official documentation of Blur, the 3 billion $BLUR has a transparent distribution and allocation plan.
51% of $BLUR will be given to community members, where users on the previous airdrop events claimed 12% of it. Also, there are 29% will be allocated to contributors. Compared to other previous drops in history from other platforms, the allocation of tokens is comparatively fair, where only 18.8% of $BLUR is allocated to investors.
Core contributors’ and launch partners’ $BLUR allocation will have tokens vested on an identical schedule with the addition of a 4-month cliff for transfers. Advisors’ BLUR allocation will vest over 48 to 60 months with a 4 to a 16-month cliff.
The schedule would give the token less selling pressure as the vesting period is quite long, showing the project is going long-term.
Competitive advantage
Looking for NFT platforms with unique and compelling offerings compared to their competitors is also critical. Platforms that offer a distinct value proposition or have a specialized niche may have a better chance of gaining a loyal user base and increasing the value of their tokens.
Let’s look at Blur again. Blur NFT Marketplace has a competitive advantage in features that make NFT trading more convenient and easier for users. First is the speed, enhanced speed across all NFT marketplaces and projects. This is a competitive advantage to traders for sniping and other activities.
Second is the listing options. Blur offers several options that differentiate from other NFT marketplaces, such as trait floor price listing, floor price listing, and ladder listing. In addition, portfolio management is enhanced by the deep analytical features available to users, allowing users to have better data to support their strategies on listings.
One more to mention, the Blur platform also offers tools to assist users in “floor sweeping” or “bulk purchase” at the lowest price from a specific collection. The platform also complies with lists of NFTs from leading marketplaces such as OpenSea, LooksRare, and X2Y2, offering users better coverage as the largest NFT aggregators in the Ethereum ecosystem on collections for choices.
No wonder why pro traders are all flooding Blur with these advantages.
User experience
Last, user experience is an essential factor when evaluating NFT platforms. Look for platforms that offer a user-friendly and intuitive interface, as this can help to attract and retain users. Platforms that prioritize user experience may be more likely to gain a larger and more engaged user base, which can ultimately lead to increased demand for their NFTs.
Blur has a well-designed interface that many professional NFT traders prefer. For example, OpenSea requires traders to switch between tabs to see their account data. Blur places analytics, sales history, and more on a single page to support a better user experience. It also has standard features like a price feed for ETH, gas fee tracking, and dark-light modes.
You can experience the above by going to the platform. The switch between Trafder and Collector mode is already a rare feature. And you will be surprised by their Trader interface, which gives the experience of trading cryptocurrencies in an exchange, but for NFTs, where all essential metrics in one page.
This is a significant win on user experience compared to the ex-market leader OpenSea.
Final Thoughts
Considering all these perspectives, you can make a more well-rounded and informed decision when choosing the right NFT platform token to invest in. However, it’s important to keep in mind that investing in crypto and NFTs comes with inherent risks, and you should always do your own research and seek professional advice before making any investment decisions.
We will share more factors and perspectives on picking the right token next week! Stay tuned and Do Your Own Research!
