coinedition.com
An acclaimed NFT trader with the Twitter handle @nfexdragon used the social media platform to educate other traders on identifying manipulators in the BLUR NFT marketplace. In a thread, the trader, also known as SD, noted that manipulators usually engage in multiple bids, increase the prices over a short period, and attract other unsuspecting bidders in an illegal practice called spoofing.
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
SD identified a manipulator ranking in the 5th position on the BLUR NFT leaderboard, with the ID @9082D2. According to SD, manipulators like @9082D2 usually bid for collections with over 30-80 items, increasing their bids to large amounts to lure other traders. Having attracted unsuspecting bidders, traders like @9082D2 would sell the lot in one swoop, leaving the other bidders with inflated NFTs.
The realization of a change in price dynamics will compel the unsuspecting bidders to sell the bags at a loss. The impact of this sell-off will reverberate across the marketplace, passing the manipulated NFTs to many rounds of bidders, all of whom would share in the loss until prices stabilize and the manipulators would repeat the cycle.
SD instructed his followers not to participate in bids where the buyers were unknown. That is a trick to avoid falling victim to market manipulators. He also advised those who may wish to profit from the activities of the manipulators to pay attention to when they begin to buy. At such moments, SD advised the traders to buy along with them before the prices are pumped and sell to them while the spoof buying is ongoing.
SD also noted that buying after a round of dumping is a good strategy, because, during such periods, the dumped NFTs are usually oversold, costing much lower than their actual value.
According to SD, the primary aim of his education is not to promote spoofing but to encourage the larger community to fight against manipulators. He believes that his approach will turn the manipulators into victims of their plots and discourage them from distorting the NFT market.