NFT Marketplace Blur to Shut Frontend Next Month; BLUR Token Drops More Than 20%

Blur’s BLUR token fell more than 20% after the non-fungible token trading platform said it will shut down its website frontend next month.

Crypto news outlet The Block reported on Oct. 12 that Blur announced on its official X account that it will discontinue its frontend service next month. The on-chain NFT trading protocol will remain operational, and BLUR token holders will continue to control protocol fee settings.

Blend, the NFT-backed lending protocol operated by Blur, will also stop matching new loans. Starting Nov. 12, Blur will end new loan matching on Blend, and borrowers must either repay by that date or allow their loans to enter default. Afterward, the company plans to provide a separate web tool for users to withdraw assets deposited on Blend.

The move comes as several Ethereum layer-2 projects have also announced shutdowns. Blast disclosed plans to wind down operations on Oct. 2, while Abstract, the layer-2 network linked to Pudgy Penguins, announced its shutdown on Oct. 6. Blast was founded by Blur creator Tieshun Roquerre, and the two projects shared the same core development team.

Blur once emerged as a major NFT trading platform, but its token reward-driven business model also faced criticism. Incentives tied to trading activity drew scrutiny for encouraging airdrop farming and suspected wash trading. Its low creator royalty policy was also criticized for hurting revenue for NFT issuers. According to The Block, Blur’s monthly trading volume peaked at about $1.43 billion in March 2023 before dropping to less than $7 million in March this year.

The shutdown announcement triggered another sharp drop in the BLUR token. It fell more than 20% to around $0.015, leaving its market capitalization at about $44 million. That is far below the level above $5 reached in early 2023.