What if I told you that you could get rewarded for completing or selling NFTs? This is what the Looksrare platform allows us to do. If you are interested in non-fungible tokens (NFT) , Looksrare may seem like a good alternative to opensea.
The idea is that every time you buy or sell an NFT, you automatically receive tokens native to the platform (LOOKS).
On January 10, 2022, Looksrare appears, adding to a list of around ten NFT marketplaces. In fact, Looks Rare even wants to compete with the largest current marketplace in terms of exchange volume which is opensea.
Looksrare's entry into the world of NFTs, however, was dazzling with significant transaction volumes. More than 750000 Ethereum wallet addresses were created in the first weeks of its launch. The platform now has more than 14000 active users, which is a very good start.
The “vampire” strategy to attract new customers
Even if there are other marketplaces, more than 90% of transactions are done on Opensea. It is clearly a monopolistic position which can be explained by its seniority. Opensea was in fact the first platform for exchanging collectibles. For a long time, it was almost alone on the market.
Then, other competitors appeared and other marketplaces specialized on certain networks. For example, there are cNFT marketplaces for Cardano or those for Binance Smart Chain (such as Treasureland). We can also cite magic eden for the network Solana for example.
So, Looksrare's ambition to dethrone Opensea is quite fierce. To achieve this, Looksrare had to be intelligent to attract new customers.
This is what she did (brilliantly) and you will quickly understand why.
The main idea of LooksRare is to reward collectors with Looks tokens. Each transaction rewards you in some way.
LooksRare’s strategy to attract new customers
If LooksRare was able to attract attention from its launch, it was mainly for its marketing strategy which consisted of distributing more than 120 tokens to its early adopters (the first users of the platform).
Interesting fact: OpenSea users were privileged. Those who had more transactions carried out on the platform received more LOOKS tokens. You had to have exchanged at least 3 ETH in the last 6 months on Opensea to benefit from it.
Thus, LooksRare wanted to attract Opensea's biggest clients to migrate them to its own platform. A great marketing coup, you will agree.
The Opensea company deemed this a "Vampire" gesture. It reminds us of theSushiSwap vampire attack. We refer to the image of a vampire to emphasize the fact that a company steals customers from another company.
Everyone will have their own opinion on the subject….
The advantages of LooksRare
To stand out from the competition, LooksRare is cheaper than others. Transaction fees amount to 2% on Looksrare compared to 2,5% on OpenSea. Even if the difference seems small, on large amounts, it can be significant.
The second advantage was that of the decentralization of Looksrare and above all the place given to users. In addition, Looksrare was the first platform to introduce a reward system for users.
The slogan, “By NFT people, For NFT people”, which can be translated as “By the NFT community, for the NFT community”, testifies to this involvement of users in the development of Looksrare.
How collectors can benefit from the LOOKS token?
In any case Looksrare was able to get people talking about it very quickly. It also knew how to be competitive with its token and its platform itself.
By launching its own token, LOOKS, Looksrare has chosen to match the remuneration of its users to their engagement rate. The most active collectors are the most paid, whether they are NFT creators or collectors.
When it launched, Looksrare generated $1 billion in sales in its first week, more than 40% more than OpenSea. The price of its LOOKS token rose to $4,80 ($0,90 as of today…).
The platform offers its users the possibility of staking tokens with an APR of 190% (annual rate of return).
It is certainly this point that interests NFT users and collectors the most.
How to earn LOOKS Token (and WETH)?
There are two main ways to earn LOOKS:
- Simply, by carrying out transactions on the platform. A global sum is distributed among active collectors. The larger volumes you trade, the larger the amount. So, each time you make an operation (purchase or sale), you can claim your LOOKS. You receive them instantly on your wallet.
- By staking LOOKS tokens on the platform. You will nevertheless need to be alert about the LOOKS courses.
Note: Remember that looksrare operates on the Ethereum network. Transaction fees (to recover your tokens) can be significant. Check the amount of gas fees before making your withdrawals
Otherwise, here is the other method to generate 191% APR:
Users can deposit LOOKS on the platform and benefit from a rate of return (currently) of 191%.
You should know that this APR can change over time. At launch, it was 750% for example.
So, users can receive LOOKS and WETH as rewards.
Note: WETH is equivalent to ETH just like WBTC corresponds to BTC.
This financial incentive was very attractive for users
To buy LOOKS, you can get it on different crypto exchange platforms such as Huobi, FTX, bybit or on Uniswap.
LooksRare NFT: A platform with mixed success
Even though Looksrare is rather well-liked, two major criticisms quickly emerged. If Looksrare makes it easy to exchange and create NFTs, the interface and functionalities of the site remain basic and simplistic.
Looksrare does not offer certain options available from its competitors such as analysis reports, notifications or even search filters.
The options are limited on the site: it is not possible, for example, to hold auctions. Finally, the disappointment also lies in the development of the application. It is not possible to categorize NFTs according to their types, to classify sales or to configure your profile, classic functions present on other platforms.
? These limits further justify the choice of OpenSea users to remain faithful to this first platform, although it is less profitable.
A lack of transparency
The second major criticism lies in the opacity of the Looksrare company. If you follow the news, you know that the "doxxing" is increasingly sought after by #DeFi users.
Founded by an anonymous team, Zodd and Guts, we don't know the founders anymore. This is relatively commonplace in cryptocurrency projects. This is even more true in projects related to NFTs.
For example, people on Twitter noticed that thanks to staking of LOOKS tokens, the team would have made more than 73000 million dollars. The team responded that it would have indeed collected 10500 WETH, the equivalent of more than 30 million dollars. The Looksrare team explained that it would reinvest the amount in the development of the platform.
Looksrare uses, for example, the tool Tornado cash for transactions. This makes the funds untraceable and therefore discredits the entire argument around transparency….
- Discover the platform Looks Rare which remains despite everything a good alternative to Opensea. Indeed, why refuse to earn tokens “for free”?
Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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