Coinbase to add support for BLUR, the governance token of the Blur NFT marketplace
Coinbase, one of the leading global cryptocurrency exchanges, has announced plans to list BLUR, the governance token for the pro-NFT trading platform Blur.io.
According to the announcement, Coinbase will classify BLUR as an experimental token, and trading for the BLUR-USD pair will launch once there is enough liquidity. Nonetheless, BLUR will not be accessible in every jurisdiction.
Backstory behind the BLUR token
Blur.io, a pro-NFT trading marketplace aimed at professional traders, distributed its governance token, BLUR, in care packages to early traders in October 2022.
Although the tokens were originally scheduled to be unlocked in January 2023, technical issues forced the company to postpone the event until February 14.
To create hype around crypto projects, airdrops are often utilized to offer users free tokens for completing specific tasks that promote the project. The BLUR airdrops come in three levels of rarity: uncommon, rare, and legendary, with the latter containing the highest amount of BLUR.
During the initial airdrop, active traders were rewarded with uncommon care packages, while rare packages were distributed during the second airdrop in November 2022. The third airdrop, which unlocks tokens on February 14, provided traders with legendary packages.
Coinbase NFT marketplace is underperforming
Coinbase’s NFT marketplace is struggling against established OpenSea, and even Blur.io. In the week ending February 2, the platform only processed $150 in trading volume and $1,500 in total trading volume. In contrast, OpenSea had $10 million in trading volumes from January 26 to February 2.
Nonetheless, Blur.io’s marketplace has been performing well, with trading volumes surpassing OpenSea on 12 of the 13 days in February, as per a Dune Analytics dashboard. The Blur platform’s sales peaked at around $17 million on February 9, compared to OpenSea’s $14 million.
Despite some speculating that the Coinbase NFT platform is in trouble because of the pause in new artist drops, Coinbase refuted these rumors, claiming that it is working on enhancing the tools requested by artists.
The backing of BLUR by Coinbase will probably amplify its fame and, hopefully, help Coinbase’s NFT marketplace gain some momentum. The inclusion of a token linked to a prospering NFT marketplace is a favorable step for Coinbase and could aid it in competing more competently with OpenSea and other marketplaces.
Coinbase vs SEC
In the aftermath of Kraken being forced to pay a 30$ million fine by the Security Exchange Commission (SEC), Coinbase is now defending its staking-as-a-service program, maintaining that such a service does not amount to a security offering.
The company’s chief legal officer, Paul Grewal, emphasized that incorrectly classifying staking services could have a far-reaching impact on the entire cryptocurrency industry in the US.
Grewal asserted that staking is not considered a security under the US Securities Act or the Howey test. He also argued that applying securities regulations to staking services could result in US consumers being unable to access fundamental crypto services. Additionally, Grewal criticized the SEC’s approach to cryptocurrency regulation, stating that relying on enforcement as a means of regulation is an inadequate alternative to actual rulemaking.
Brian Armstrong, the CEO of Coinbase, recently took a trip to Washington, D.C to push for clearer regulations amidst the current uncertainty in the sector.