The non-fungible token (NFT) marketplace, Blur, has partnered with venture capital firm Paradigm to launch Blend, a collateralized lending system that allows buyers to purchase NFTs using a buy-now, pay-later (BNPL) method. According to Blur, the lending system will not charge borrowers or lenders any fees. However, this announcement has sparked mixed reactions from the NFT community.
A community member with Twitter username @Peepeedog.eth praised Blur’s recent move, stating that it develops the industry and improves overall operations.
Massive for the space – great move by @blur_io. Effectively this allows you to loan out your ETH for yield, and also allows better cash/jpeg efficiency. https://t.co/PikWKqN0Jn
— peepeedog.eth (@peepeedog) May 2, 2023
However, another Twitter user identified as OxLvna.eth suggests that the recent announcement from Blur is a welcome distraction from the “overall negative sentiment” prevalent in the NFT industry and stated that when it comes to lending and buy now, pay later (BNPL), users should be careful as it is risky. They advised that users shouldn’t invest more than they are willing to possibly lose. @Crypto Tony, another user, also advised that people should research the lending process before engaging with Blend.
People need to defo research into lending before doing this. If your not prepared very quick way to lose your prized assets
— Crypto Tony (@CryptoTony__) May 1, 2023
Some community members, such as @IsKyleETH, raised concerns about NFT lending and the possibility of incurring further financial losses if they cannot repay the loan.
Jesse Hynes, a lawyer for Web3, even tagged the United States Securities and Exchange Commission (SEC) on Twitter, calling on them to protect investors from this type of behavior and describing the lending system as extremely dangerous.
This is extremely dangerous and the type of activity the @SECGov should be protecting investors from. https://t.co/lE7oC7t0eH
— Jesse Hynes 🌱 (@jesse_hynes) May 1, 2023
In what has been referred to as NFT marketplace wars, Blur and OpenSea, another popular NFT marketplace, has continued to introduce new features and capabilities to woo users. In response to Blur’s launch, OpenSea introduced 0% fees in February 2023. Also, OpenSea unveiled an innovative NFT marketplace aggregator to further disrupt the status quo.
Despite these developments, a recent study by NFTGo, an analytics platform, suggests that the NFT market may be experiencing a lack of demand. The report showed that in April 2023, there were more sellers than buyers in the market, with only 7,907 buyers recorded compared to 8,641 sellers. The statistics suggest that there were never more buyers than sellers on any given day in April, indicating a lack of demand and potentially making it challenging for sellers to sell their NFTs.
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