A well-known NFT trader, @nfexdragon, recently turned to social media to educate other traders on recognizing manipulators in the BLUR NFT marketplace. In a Twitter thread, SD, as the trader is called, presented a series of observations, warning that manipulators often make repeated offers, swiftly push up prices, and lead naive bidders into an unlawful strategy known as spoofing. @nfexdragon intends to assist traders in avoiding falling victim to deceptive methods in the turbulent realm of NFT trading by sharing this vital information.
Here's how this manipulator operates. They usually bid for a collection of over 30-80 items, and there will be a short time period where they start to increase their bid sharply with large amount size.
— SD (@nfexdragon) March 25, 2023
The dark side of NFT trading: Manipulators revealed
After closely scrutinizing the BLUR NFT leaderboard, SD unearthed a manipulator who had managed to attain the fifth position, hiding behind the innocuous ID @9082D2. SD’s investigative efforts revealed that such manipulators prefer to bid on NFT collections of 30-80 items, artificially inflating their bids to lure other traders into the mix. The ultimate goal, according to SD, is to sell the entire lot at once, leaving unsuspecting bidders holding overpriced and inflated NFTs.
Once the price dynamics shift, it can force unaware bidders to sell their bags at a loss, which has a ripple effect on the entire marketplace. The manipulated NFTs continue circulating through multiple bidding rounds, spreading the loss to all those involved until the prices stabilize. This cycle allows manipulators to repeat the process and profit from unsuspecting traders. As a result, traders must be vigilant and stay informed about the latest trends and patterns in the NFT market to avoid falling victim to manipulative practices.
SD’s guide to avoiding NFT manipulators
SD advised his followers to avoid bidding when the buyers were unknown. It is a strategy for avoiding market manipulators. He also recommended anyone who may want to benefit from the manipulators’ efforts pay attention when they start buying. At such times, SD urged traders to purchase alongside them before prices were inflated and sold to them while fake purchasing occurred.
SD also said that purchasing after a round of dumping is a solid approach. This is because, at such times, the NFTs that have been dumped are often oversold, resulting in prices that are far lower than their true worth.
According to SD, the primary goal of his instruction is not to encourage spoofing but rather to inspire the greater community to fight against manipulators. This goal is the antithesis of the goal of promoting spoofing. He is confident that adopting this strategy would render the market manipulators helpless victims of their schemes and deter them from continuing to distort the NFT market.