BLUR prices jumped to as much as $5 before falling 85% on Wednesday morning, price trackers show.
Tokens of NFT marketplace Blur have already amassed over $500 million in trading volume in less than 24 hours since their much-hyped airdrop.
Airdrops are the unsolicited distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses and are generally used as a tactic to gain users.
BLUR tokens were airdropped to users of the Blur marketplace, with the airdrop amount depending on the total activity, network volume, and transactions made by each user on the platform.
This meant some users received as many as 128,000 BLUR tokens, tweets show. Blockchain tool Etherscan further shows users received as little as 25 BLUR to hundreds of thousands of BLUR.
Blockchain data shows there are over 33,000 unique wallet holders of blur as of Wednesday morning, with a majority of these initially receiving the airdrop before likely transferring the tokens out to other wallets.
Some traders sold the tokens en masse after receiving the airdrop. The tokens were initially listed at $1 on crypto exchange Coinbase, but fell to as low as 48 cents late on Tuesday. However, Asian hours on Wednesday saw buying pressure and the tokens rose to 72 cents as of writing time.
CoinGecko data shows over $530 million worth of blur has been traded across exchanges such as OKX, Kucoin and Uniswap.
Meanwhile, the total value of tokens on the Blur marketplace spiked by $10 million in the past 24 hours, DeFiLlama data shows.