LooksRare looks to cash in on the NFT craze that shows no signs of abating, even at this early juncture in 2022.
There is a new NFT marketplace that is attracting large trading volumes called LooksRare. According to Dune Analytics, there was 36% more USD volume on January 11, 2021 on LooksRare than on OpenSea. LooksRare, a new kid on the block, launched 10 Jan 22. LooksRare allows NFT listing on other platforms, like OpenSea. It should be noted that radiation OpenSea NFTs can cost a lot of gas.
Rewards allocated pro rata in four phases
LooksRare has its own token called LOOKS, which it distributes to buyers and sellers. NFT creators also receive royalties in LOOKS. The initial phase of LOOKS rewards will see 2,866,500 LOOKS tokens distributed per day to traders. This will continue for 30 days and is the first phase of reward dispensing. Suppose a trade is completed in an eligible collection. In that case, trading rewards will be allocated a portion of 2,866,500 LOOKS based on their share of the day’s trading volume. There are three other phases of 90 days, 240 days, and 361 days, each phase having an allocation of daily LOOKS rewards. The second phase will offer 136,1587.5 LOOKS per day, the third 537,468.75, and the fourth 286,650 LOOKS. Since trading volume is the metric used to apportion rewards, traders will want to maximize that metric. Wash trading is not only possible but probable due to the 2% flat marketplace fee. Fees are allocated to LOOKS stakers, incentivizing staking, not selling. Due to the lower cost basis, wash trades can also be profitable on royalty-free NFTs.
When it comes to 24-hour trading volume, Immortal Phoenix sits at the top of the pile, followed by ArtBlocks and Rebel Rabbits. Meebits ranks first for total trading volume.
BAYC buyer earned $3.5K
NFT sales totaled $2.1B for the first ten days of the year. Staking of LOOKS tokens can earn up to 889.88% Annual Percentage Rate. Bored Ape #4937 was sold yesterday on the marketplace, with the buyer receiving $3.5K in rewards. The seller saved $1500 in fees and got $3.5K in rewards. On OpenSea, the buyer and seller would not have received anything except the NFT.
LOOKS hit an all-time high of 5.1 Tether (USDT) on Thursday, January 13, 2022, and at the time of writing, LOOKS was selling at 3.9 USDT. Negative news could see the price break above the 3 USDT mark.
