Only one day passed after the release of the OpenSea competitor – LooksRare and it has already passed $100M in sales. The NFT marketplace has so far generated nearly $2M worth of platform fees to be distributed among LOOKS token stakers in the coming hours.
Although OpenSea is considered the dominant player in the NFT marketplace niche, with the company often accounting for 90% of the trades in the sector, many criticize the platform’s strategy of acting like a middleman in a decentralized field, whose main aim is to get rid of middleman-like structures. The projects’ users have been urging the platform to release a token and decentralize its governance for months.
At this time of criticism, the LooksRare protocol emerged and with its lucrative user incentives managed to take over a large portion of the daily NFT trades. However, speculations arose that the overnight success of the platform may be temporarily and only the result of wash trading. Multiple observers have pointed out that a large portion of the LooksRare trades volume is highly likely only generated due to wallets controlled by the same party “selling” assets back and forth, in order to participate in the airdrop and get rewards for trading. Currently over $10M worth of LOOKS tokens per day are being rewarded to buyers and sellers on the LooksRare platform. The price of LOOKS at the time of writing is $3.73, according to Coingecko.