Manipulators in the NFT marketplace have been causing much trouble for traders and investors, often leading to unexpected losses. In recent months, their activities have become increasingly common and sophisticated, making it more difficult for NFT holders to protect themselves against malicious tactics.
Fortunately, a Twitter user has shared highlights on various strategies the manipulators employ and how to defend against manipulations.
Potential Manipulators In BLUR NFT Marketplace
@nfexdragon, aka SD, tweeted about ways to recognize potential manipulators in the BLUR NFT marketplace. In a series of tweets, the acclaimed NFT trader highlighted how spoofing, an unlawful activity, is often perpetrated by those conducting multiple bids and artificially inflating prices within a short time frame.
SD identified a trader with the ID @9082D2 in the 5th place on the BLUR NFT leaderboard. SD reported that this manipulator would typically bid for collections with 30-80 items, pushing their bids too high to attract other traders. After acquiring a lot of attention, these manipulators would quickly sell the lot, resulting in other bidders owning overpriced NFTs.
Also read:The sudden shift in price behavior will pressure unsuspecting participants to sell their collection for less than what they paid, leading to a ripple effect across the trading platform. This will result in the transfer of NFTs to multiple bidders, each suffering a financial loss. Then, the manipulator repeats the cycle once the market stabilizes again.
SD’s Tips To Avoid Market Manipulators
Based on his experience, SD cautioned his followers to avoid bidding in cases where the buyers were not known to prevent the activities of market manipulators. SD also suggested that traders invest in the same assets as the manipulators before the artificial price starts.
Then, sell while the bogus buying is still in progress. SD further recommended that buying after selling off can be a good idea.
The sold NFTs may be undervalued, making them cheaper than their true worth. He is confident that his method will cause those who attempt to distort the NFT market to become victims of their schemes.
Nevertheless, all NFT traders must remember that the NFT marketplace is highly volatile. As such, it is always important to remain vigilant.
By following SD’s simple strategies, traders can reduce their risk of falling victim to manipulation and be better prepared to take advantage of the NFT marketplace.
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