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The BLUR token has hit a new low, dropping below the $0.75 level for the first time in recent weeks. This comes as investors grow increasingly concerned about the potential for a further increase in the token's supply, which could put even more downward pressure on the price.
One of the primary reasons for the decline in the value of BLUR is the upcoming airdrop of new tokens, which will be distributed to existing token holders. While airdrops can be a great way to reward loyal investors and generate interest in a cryptocurrency project, they can also be problematic if the new tokens flood the market and create an oversupply situation.
When new tokens are airdropped, they are typically given to existing holders in proportion to the number of tokens they already own. While this can be a great way to reward early investors and build community engagement, it can also create selling pressure if a significant number of investors choose to sell their new tokens immediately.
This is especially true if the new tokens are distributed in large quantities, as is often the case with airdrops from newer projects trying to build a user base. In some cases, this oversupply can lead to a sharp decline in the value of the underlying asset, as investors scramble to sell before prices drop too low.
In the case of BLUR, the upcoming airdrop has caused many investors to grow concerned about the potential for oversupply, leading to a decline in the token's value. Unfortunately, the endorsement BLUR received from notable entrepreneurs could not help it on its way down.
Vladislav Sopov