NFT whale down millions after farming Blur tokens with Bored Apes
The serial entrepreneur, tech bigwig, and singer Jeffrey Huang, better known in the crypto world as Machi Big Brother, has suffered realized losses of up to 2,400 ETH ($4.2 million) thanks to his attempts to farm tokens from the Blur NFT exchange.
Traders on Blur have been involved in so-called ‘farming wars,’ buying up and selling large amounts of NFTs to collect Blur tokens awarded against the user’s activity on the exchange.
But some traders like Huang have taken this farming to a very serious level, buying and selling mainly blue-chip NFTs such as Bored Ape Yacht Club and CryptoPunks in very large volumes.
Huang has apparently claimed 1.85 million Blur tokens so far, selling them all at an average price of $0.71. He is expected to receive more Blur tokens in the incoming airdrop in the next month and bought another 350,000 at an average price of $0.61. These are currently worth just $188,807.
As part of his Blur farming strategy, Huang is also purported to have made the biggest NFT dump in history, selling more than 1,000 NFTs for 11,680 ETH ($20.6 million). His wallet shows a remaining balance of 248 ETH ($438,000).
It’s unclear why Huang is taking such a huge risk by farming Blur tokens in this manner because they can be bought and sold in the open market. That said, his crypto history is a little murky. Back in 2018, he alleged to have embezzled 22,000 ETH ($38.8 million) from investors through his company Formosa Financial.
It’s worth noting that he did refute the claims and also threatened to sue the author of the allegations, ZachXBT, but never went ahead with the suit. It’s unclear whether Huang has any link to the Blur exchange itself.
Blur’s approach is working so far
Blur has been launched without much pomp and promotion and its registered origins are a little unclear. The team behind it also went to great lengths to keep themselves out of the spotlight but its founder, Tieshun Roquerre, was eventually doxxed.
Read more: Playboy loses $5M on Ethereum earned from NFT sales
Roquerre was also the founder of Namebase and was awarded a grant by the Peter Thiel Foundation. But, regardless of who’s behind Blur, or what farmers like Huang choose to do, its strategy of providing tokens against user activity looks to be working. Indeed, earlier this month, this relative newcomer flipped OpenSea in trading volume and royalty payments.
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