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On-chain data signals an alert for the platform token BLUR of leading NFT marketplace Blur. According to the data platform Spot On Chain, the unrealized profit of the top 7 BLUR investors has exceeded $55 million, reaching a significantly high level.
$55 Million Danger in BLUR Holdings
The on-chain data platform Spot On Chain reported that the unrealized profit of the top 7 BLUR investors has surpassed $55 million. The data reveals that these wallet addresses have primarily been collecting BLUR from the US-based cryptocurrency exchange Coinbase after monthly token unlock events since June 2023, and they could be responsible for the subsequent price increases following these unlocks.
Currently, the wallet addresses hold approximately 5.86% of BLUR’s supply, valued at $116.3 million, which amounts to 175.7 million BLUR tokens. The fact that such a large amount of BLUR is controlled by only 7 wallet addresses is causing concern among investors.
Interestingly, BLUR is defying the general market downturn, trading at $0.6604 with a 14.02% increase in the last 24 hours as this article is being prepared.
What Does “Unrealized Profit” Mean?
Unrealized profit refers to the difference between the current value of an open investment or trade position and the initial cost incurred. However, this profit has not yet been realized or actualized. Investors earn realized profit when an asset is sold or a trade is closed.
For example, if a person buys a cryptocurrency at a certain price and the asset then appreciates in value, that person’s unrealized profit increases. However, to realize this profit, the investor must sell the asset and close the transaction.
Unrealized profit affects the investor’s portfolio value but can only be theoretically calculated before the assets are sold. Market conditions and changes in asset prices continuously influence unrealized profit. It should not be forgotten that if the asset loses value, the unrealized profit can turn into a loss.
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