LOOKSRARE: A nascent NFT trading market just launched, and the trading volume exceeds Opensea

Just the day before yesterday, the newly launched NFT trading market LOOKSRARE surpassed Opensea, the big brother of the NFT market, with more than double the trading volume, and the total trading volume exceeded 320 million US dollars.

LOOKSRARE is an Ethereum-based and community-centric NFT marketplace. Its appearance is bound to compete with its predecessor Opensea.

The community attribute seems to be placed in a high position by LOOKSRARE. On the one hand, LOOKSRARE’s Slogan is “By NFT people, for NFT people”, which is a bit from the NFT audience, to the NFT audience.

On the other hand, it needs to be discovered by comparing it with Opensea, the big brother of NFT.

  • The main differences between LOOKSRARE and Opensea are as follows:
  • LOOKSRARE charges 2% per transaction, while Opensea charges 2.5%.
  • The fees collected by LOOKSRARE will be used for staking rewards of LOOKS tokens, while Opensea will use all fees for team retention.
  • Creators in LOOKSRARE receive royalties immediately when they sell their work, while Opensea takes two weeks.
  • LOOKSRARE supports not only ETH for transactions, but also wETH (wrapped ETH can be directly used for transactions in dapps), while Opensea only supports ETH.

Overall, it seems that each function is more community-friendly than Opensea, which is worthy of the phrase “By NFT people, for NFT people”.

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 Why is there such a large volume of transactions just launched?

 achievement

Opensea was on track to set a new record for Ethereum NFT monthly transaction volume this month, but LOOKSRARE made that difficult.

As mentioned above, the day when LOOKSRARE was launched (that is, the day before yesterday), the daily trading volume reached 320 million US dollars, twice that of Opensea, and yesterday and today, January 13th (as of 17:00) continued to maintain this trend , reached $500 million yesterday.

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 Cause Analysis

The dazzling trading volume is supported by the following points:

Airdrop Rewards:

LooksRare is offering a free LOOKS token airdrop to OpenSea users who trade at least 3 ETH (~$9,630 as of today) on the market between June 16 and December 16, 2021.

This method is known as a vampire attack, and Sushiswap used it in 2020 to overtake Uniswap in one fell swoop, trying to steal users from other platforms by providing incentives to users in the form of tokens.

Judging from the current results, the launch of LooksRare is undoubtedly a success.

The number of wallet addresses that have received the airdrop has reached 87,459, accounting for 47.22% of all available wallets.

Swipe transaction:

The concept of brushing transactions is not difficult to understand, that is, traders fabricate transactions and act as counterparties to both parties. This is extremely common in both decentralized exchanges and centralized exchanges. There are even academic papers that say that 70% of the transaction volume is a transaction.

LooksRare’s token distribution itself also incentivizes the generation of swipe transactions. Currently, the protocol rewards buyers and sellers with 2,866,500 LOOKS tokens (over $10 million) per day based on transaction volume, and will continue to do so for the next 30 days , and then gradually reduce emissions.

Left pocket to right pocket, hey, LOOKS is here!

Peer foil

On January 9th, starting from about 21:00 Beijing time, the OpenSea service was down, and some users reported that the page could not be opened, or it was very slow.

This is not the first time such an accident has occurred in OpenSea. Although the official said that it will recruit more network maintenance personnel to ensure that there will be no downtime, the resentment of users has accumulated for a long time.

In addition, OpenSea’s 2.5% platform rate is all attributed to the team, which has been criticized by friends in the encryption field for a long time.

LooksRare’s launch time is right at the right time.

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Token Model

The token of LOOKSRARE is LOOKS, and the total supply is 1,000,000,000 pieces. The specific distribution is shown in the following table:

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Summarize

So far, LOOKSRARE is performing very strongly, but after analyzing the reasons behind its trading volume, it is still doubtful how long this hot trend will continue.

After all, the amount of transaction incentive tokens is fixed every day. As the rewards distributed to each person decrease, this kind of backhand transaction will inevitably decrease.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/looksrare-a-nascent-nft-trading-market-just-launched-and-the-trading-volume-exceeds-opensea/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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