The NFT market has seen unprecedented trading in anticipation of Blur's Phase 2 airdrop. However, the surge in trading volume caused by the "brush drop" has raised concerns about its sustainability and market manipulation. In this regard, Blur's founders argue that Blur's incentive mechanism is really to introduce the concept of "market maker" to the NFT space and further push the NFT industry forward:

The vast majority of trading volume in both traditional and token markets comes from a small number of market makers (actually fewer than 10). The trading activities of a market maker are quite different from those of a collector. I've seen a lot of misinterpretation of this, so here's an explanation.

2/5 There were few market makers in the NFT before Blur. Franklin and Machi Big Brother were the first "market makers" of a certain size (by comparison), the equivalent of Jump Trading and Jane Street in the NFT world. And as the field matures you're going to see more and more market makers.

3/5 What you need to understand is that market makers are not volume traders. They provide liquidity and profit from price differentials that fluctuate around the true value of assets. They pay royalties to the creators for every transaction they make.

4/5 Their trading activity is different from what NFT enthusiasts are used to. But their presence will allow more players to enter the field. The liquidity they provide makes it safer to buy new collectibles, which leads to higher transactions and higher creator income.

5/5 The world of tokens has exploded, driven by improvements in infrastructure and liquidity. There will also be massive growth in NFT in the future, and the addition of market makers is just the beginning.

In addition to the above tweet, Pacman quoted Sugar Shane, who previously worked as a market maker at the Chicago Board Options Exchange. Sugar Shane said market makers in the traditional space make profits by buying low and selling high, and provide liquidity for newly established trading platforms, so professional trading strategies are needed for market makers to achieve this.

However, Sugar Shane also said that for Blur, a large number of traders on the platform over the past few months could not be called real traders because there was not a reasonable spread between their bids and offers, and they were just looking for more airdrops. But whether it will be more profitable to keep a reasonable spread or simply to do the airdrop will only be known when Blur's next round of airdrops is released.

Overall, Pacman believes that the strategy of its project operations has introduced market makers into the NFT market, which has resulted in higher liquidity, but this liquidity is likely to shrink rapidly as the airdrop campaign ends. It remains to be seen whether Blur can establish a stable market-making mechanism and user habits in such a short period of time.