BlueMove, an NFT marketplace operating on Aptos and Sui blockchains, has announced that it will halt operations on the Sei network starting August 31 at 4:00 UTC.
The company shared that the decision to suspend operations is due to lower-than-expected trading volumes within the network.
In the announcement made on X (former Twitter), BlueMove requires its users to delist their NFTs by August 31 to prevent any potential loss of assets.
BlueMove was launched in August 2022. The platform gained rapid recognition, capitalizing on the capabilities of Aptos and Sui blockchains. However, a year after its launch, the platform faces challenges in the NFT market, which has experienced recent downturns. Over the past week, NFT trading volumes hit a two-year low of 5000 ETH. User engagement in non-fungible token trading has also dipped significantly.
Sei Network’s Rapid Growth and Challenging Times
BlueMove’s closure on the Sei network serves as a warning for the larger NFT market, emphasizing the necessity for adaptability and innovation to navigate the market’s inherent volatility.
Sei Network is a general-purpose, open-source Layer-1 blockchain. It went live on the mainnet beta on August 16, after a successful testnet alpha phase. Sei developers shared that the testnet alpha phase yielded the generation of over 400 million transactions and 7.5 million unique wallets.
Sei blockchain aims to drive the mass adoption of digital assets by being Layer 1 optimized for crypto trading, web3 gaming, NFT marketplaces, or decentralized exchanges. It has recently launched a $120 million Ecosystem Fund with plans to support teams building an array of applications across NFTs, gaming, and DeFi.
Within a day after the Sei network’s mainnet went live, its native token was listed on Binance, Bybit, Huobi, and Kraken. In just 24 hours, the token’s trading volume hit $1.3 billion, with almost half of the volume coming from the Korean crypto exchange Upbit.
However, amidst the prevailing enthusiasm for the token, the hashtag “#SeiScam” gained traction on Twitter on August 16. This upsurge in online conversations was linked to the heightened anticipation for Sei’s airdrop specifics, which testnet users were waiting for.
SEI informed the community that the airdrop distribution would be delayed until after the primary token listing. When the much-anticipated airdrop was eventually executed, the payout significantly undershot anticipated levels.
On August 17, the Sei network’s community experienced a wave of discontent regarding the airdrop. Individuals who had supported Sei for eight to twelve months were rewarded with paltry sums, receiving an average distribution between $4 and $15.
A community member named ShreyUday on X shared that he only received 65 million Sei tokens, which were worth around $12 on August 17.
More than that, testnet users have encountered difficulties in redeeming their tokens.
Community members dubbed the experience a “tragedy,” and the event turned into a whirlpool of criticism and backlash, bringing the price of Sei from around $0.2707 to $0.1516.
The example of Sei shows how such incidents can rapidly erode community trust.
Overall, such cryptocurrency projects encounter persistent challenges. These include pursuing mass adoption, obtaining secure listings on reputable exchanges, and attaining favorable evaluations to enable internal or venture capital disbursements.
At the time of writing, the price of the Sei token was approximately $0.1560, according to CoinGecko.
Source: mPost
