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Nobody knows exactly who Ced is and what he has been carving, but a number of theories have arisen.
The current top theory is that Ced is from the future, and he uses his BOE daggers to carve through space and time, hence why they glow black. Being a world drop, Ced hasn't mastered the art of carving through space and time yet so the daggers end up in the hands of pretty much any high level creature.
This item is a World drop.