What is LooksRare?
Launched on January 10, 2021, LooksRare is an NFT marketplace that is similar to its famous predecessor OpenSea. That being said, the new platform has stated that it wants to place the NFT community at the center of their focus and have already actively rewarded traders on their platform.
In the first week of their launch, LooksRare more than doubled the total volume of sales that were conducted on OpenSea in the same week, according to Dune Analytics. This is largely due to their low fees and the ability to earn LOOKS, the company’s own crypto coin that can be staked on the platform.
How Does LooksRare Work?
LooksRare has indexed every NFT collection and work of art on the Ethereum blockchain. This essentially means that users can purchase any ETH non-fungible token directly from this NFT market, even those that are not available on OpenSea.
People who trade on the platform can also earn the LOOKS token. The amount they earn will depend on their trade volume within any given day. The platform plans to hand out about 6,500 blocks per day over the first two years of its existence in the industry.
Whether people purchase LOOKS, earned it in an airdrop, or collect it over time through their trade volume, they can earn more passive income by staking the token on the platform. LOOKS stakers will be able to continually compound what they have earned, potentially cashing out with a larger amount of cash than they spent on their first NFT.
There has also been a substantial amount of wash trading on the platform as users are looking to collect and stake LOOKS. This may lead to a lower valuation of the coin’s liquidity over time, though the community is very excited about the potential of the platform, especially as it moves forward.
What Currencies are Supported on LooksRare?
LooksRare.Org currently works with ETH (ether) and collects its trading fees in WETH. In order to purchase LOOKS or non-fungible artworks on their platform, you will need to link a crypto wallet.
Currently, the platform does not accept payment (or trades) in another cryptocurrency such as BTC (bitcoin) or fiat currency such as USD, AUD, or GBP.
What NFTs Can You Purchase on LooksRare?
Using LooksRare, you can currently purchase any eligible collections of NFTs that have been minted on the Ethereum blockchain. Trending NFT collections, like Meebits, have been bought and sold on the marketplace since its launch.
You will also be able to find NFTs that are posted on a variety of other marketplaces, such as OpenSea or Uniswap, making this a good one-stop shop.
How to Buy an NFT on LooksRare
Once you learn how to use the platform, it is relatively easy to purchase your favorite NFTs on this defi platform. In order to purchase artwork on LooksRare, complete the following steps:
Step 1: The first thing you’ll need to do is purchase ether (ETH) from a widely-trusted cryptocurrency exchange.
Step 2: Create a web3 wallet with MetaMask (or choose another crypto wallet that is compatible with LooksRare) and transfer your ether to it.
Step 3: Once you have a MetaMsk account, connect it to LooksRare to create an account.
Step 4: Sign in to LooksRare and visit the NFT marketplace.
Step 5: You can either search for NFTs on the marketplace or browse for available artwork that you wish to purchase. Once you find what you like, click the “buy now” option to purchase them at a fixed price. Alternatively, you can make an offer to the seller.
Step 6: To complete your purchase, you will need to approve it on MetaMask. As the NFT buyer, you will be responsible to pay the Ethereum gas fees.
You will be able to see the NFTs in your wallet and on your account’s profile page once the transaction has been processed. You will also receive LOOKS tokens when you make an NFT trade that you can either stake or sell at its market cap.
How to Store Your NFTs
Your NFT will be stored on the blockchain after you purchase it and you will be able to access it through MetaMask or the web3 wallet of your choice. When making the purchase, LooksRare will not take custody of your NFTs.
While web3 wallets do what they can to keep your assets safe, it is always a good idea to transfer your NFT to a hardware wallet to ensure that they are completely secure. This will prevent scam artists from being able to steal your assets if they hack into your computer or browser.
You can also use Coinbase Wallet or Wallet Connect with the platform.
How to Sell an NFT on LooksRare
If you want to sell one of the assets you own on LooksRare, you can set up a listing on the platform to potentially find a buyer. Here’s how to sell your NFTs:
Step 1: Log in to the platform using your web 3 wallet (such as MetaMask).
Step 2: Find the non-fungible token you wish to sell from your personal collection and select the option to sell.
Step 3: On the following page, choose your desired price for the NFT, and other details that could give the seller more information about it.
Step 4: Once you have finished, click the green “Sell” button on the top-right of the screen.
You will receive payments in WETH on LooksRare.
From your profile page, you will be able to check the status of your listings. You can also edit any listing as you wish (note that fees may apply in doing so). The platform allows you to trade any smart contracts that are on the Ethereum blockchain.
While listing your NFT on LooksRare will potentially get you a sale, it is always a good idea to promote it on social media. You can post about in Discord, Telegram, on Twitter or other sites to find a potential buyer.
Selling Options on LooksRare
LooksRare plans to release the ability to set up auctions in the future. Sellers will be able to set up their listings to run on auction for between 1 and 180 days. For now, users can set their listings at a fixed price. Users can also accept an offer from another user.
LooksRare Platform Fees
While it is free to create and use an account on LooksRare, you will need to pay fees on basic NFT sales. Depending on the artwork purchased, sellers may also need to pay between 5 – 10% royalty fees from the total price of the sale. If sellers accept an offer, they will pay gas fees on the transaction.
Buyers will need to pay a 2% transaction fee when purchasing a piece of digital art. Buyers will also need to pay gas fees to the Ethereum blockchain (this fee does not go to LooksRare). There is no transaction fee paid to LooksRare for private sales.
Pros and Cons of LooksRare
Pros
- Mass quantity – LooksRare allows you to search for or browse any non-fungible token on the Ethereum blockchain. You can also use their category system to sort through the asset you pique your interest.
- Easy UI – The user interface is easy to use and intuitive to new users, even those who are new to the NFT world.
- Low fees – The platform offers the lowest fees in the industry, compared to other available marketplaces. They charge 2% for their transaction fees, whereas their closest competitor charges 2.5%.
- Decentralized – You won’t need to worry about your cryptocurrency or NFTs being in danger when conducting transactions on this platform.
Cons
- No fiat support – You currently cannot purchase assets using fiat currency (USD, GBP, AUD, etc), a credit card, or any other form of cryptocurrency.
- No minting – The platform currently does not have a way for creators to mint their own NFTs.
Final Thought
LooksRare is a decentralized platform that will not take custody of your assets or funds during a transaction. The platform mainly serves as a marketplace that allows two users to connect to each other’s wallets so that they can safely make a transaction without personal risk.
That being said, it is very important that you always check the URL to ensure you are on looksrare.org instead of a phishing site that has been styled to look like the site. These are scams.
LooksRare currently does not have a mobile app (though you can log onto the platform from your mobile browser). Keep that in mind so that you don’t use a fake app not affiliated with the company.
