Jesse Hynes, a Web3 attorney, mentioned the SEC and emphasized the need for investor protection against such activities.
Blur, a marketplace for nonfungible tokens (NFTs), recently introduced its collateralized lending protocol named Blend, enabling a buy now, pay later approach for purchasing NFTs.
The community had diverse reactions to this development. Some view it as a significant advancement for the industry, while others are urging the United States Securities and Exchange Commission (SEC) to safeguard users against such products.
On May 1, Blur launched Blend, a peer-to-peer perpetual lending protocol created in collaboration with venture capital firm Paradigm. The protocol supports NFT collateral, and the team claims that it does not charge any fees to lenders and borrowers.
A member of the community expressed their admiration for Blur's recent initiative, describing it as a significant step forward for the industry and highlighting its potential to enhance efficiency. In a tweet, they stated:
On the other hand, a different Twitter user believes that the recent progress made by Blur, a competitor of OpenSea, serves as a positive diversion from the prevailing pessimism within the NFT realm. This community member's perspective may be influenced by the decline in the number of NFT buyers observed in April. NFTGo, an analytics platform, reported that sellers held the upper hand in the NFT market during that month.
While certain individuals directed their attention towards the positive aspects, there were others who expressed their disapproval of NFT lending. A community member emphasized the potential risk associated with being unable to repay the loan, resulting in significant financial loss. In the meantime, an NFT collector utilized the opportunity to educate others on the subject of NFTs.
Jesse Hynes, a lawyer specializing in Web3, mentioned the official Twitter account of the SEC and urged the commission to prioritize investor protection in relation to this specific activity, deeming it "extremely dangerous."
Blur has been actively establishing its presence in the NFT market, leading to responses from OpenSea in what the community informally dubs the "NFT marketplace wars." On February 18, OpenSea introduced a 0% fee structure to regain its user base from Blur. Additionally, OpenSea recently launched an advanced NFT marketplace aggregator as another strategic move to shake up the industry.
