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What is LooksRare.org? Should Opensea Be Worried?
After spending the past four years with my fingers on the financial pulse of the world, one thing is clear: NFTs and crypto assets are continuing to tiptoe closer and closer towards mass adoption. After seeing numerous crypto commercials and a never-ending Twitter feed about celebrities buying Bored Apes… I’m starting to think that “tiptoe” is becoming a sprint. A dash for cash between new and established platforms to capture and keep the attention of thousands of new investors entering our space everyday.
A common question newcomers ask me on a daily basis is: “Where should I buy my first NFT?” Personally, the answer to that question changed earlier this year. Today, we’re going to take a look at a new platform called LooksRare.org and see what they have to offer compared to their most popular competitor. When it’s all said and done, you’ll have all the knowledge you need in your tool belt to make that decision for yourself.
Pollution in the OpenSea?
When we reminisce, 2021 will always be remembered as the year NFTs really hit the ground running. Data from DappRadar indicates trading volume from NFTs surpassed over $22 billion dollars in 2021, compared to a mere $100 million dollars from 2020. OpenSea, the most popular NFT trading platform, has an estimated value of over $13 billion dollars. Don’t get me wrong, for the sake of the industry; I’m glad they had the year they did…But who got to reap the benefits of their success?
I’m sure the OpenSea team and their investors all shared laughs at candlelit dinners, yet the community that built the platform got nothing back. Sure, you could say that the OpenSea Team doesn’t owe the community anything because they provided a service, and that’s capitalism. That’s a fair point; but what if there was a community driven NFT platform whose primary focus was to give back and empower those who participated in their ecosystem instead? Look no further than LooksRare.org.
Launched on January 10th, 2022, LooksRare is a unique NFT platform that puts their community first. Before mentioning anything about the rewards this platform has to offer, know that they only charge a 2% fee for basic sales and no fees on their private NFT sales. Their website illustrates that “100% of LooksRare’s trading fees are redistributed proportionally to LOOKS stakers.” In other words, the fees they do charge go directly back to their users. OpenSea on the other hand, charges 2.5% for every transaction and they keep every penny. Considering they have indexed each and every NFT collection on the Ethereum blockchain, LooksRare has every NFT that’s available on OpenSea and more!
Using their native token, LOOKS, they reward buyers, sellers and creators for utilizing their platform. You earn LOOKS every time you buy or sell an NFT and the rewards are distributed once a day. According to the LooksRare FAQS, “All collections now generate trading rewards. No minimum volume required.” Additionally, you can stake your LOOKS coins to earn more LOOKS and earn WETH trading fees. If you want to purchase LOOKS, you can find it on UniSwap. Staking LOOKS can earn you up to 175% APR.
The Lost Boys of NFT Platforms?
Reminiscent of SushiSwap like tactics, earlier in the year, LooksRare launched a full force Vampire Attack against their competitor OpenSea. To incentivize NFT collectors to jump ship, LooksRare airdropped LOOKS tokens to anyone who traded at least 3TH on OpenSea between June 16th and December 16th 2021. Thedefiant.io
LooksRare showed their fangs once again on January 15th in a tweet that elaborates why it’s advantageous to choose LooksRare over OpenSea. The Tweet reads, “The buyer got $3.5k in trading rewards. On OpenSea, they would have gotten none. The seller saved $1.5k in fees and got $3.5k in trading rewards. That’s $5k more than they would have gotten on OpenSea.”
As an NFT buyer myself, these numbers are hard to ignore and when you see a recent real life example such as this one, I’m beginning to think I may have dipped my toes in the OpenSea for the last time. LooksRare is clearly outperforming their competitors from usability, to incentives, right down to brass tax. With LooksRare, it’s ultra convenient that you can purchase any NFT with a combination of ETH and WETH. Also, creators receive their royalties instantly. Not only do I value a company that puts their community first, I value that they give their users an opportunity to earn a passive income.
I’m personally a passionate advocate for staking crypto assets. To be successful, it’s imperative to have as many streams of passive incomes as possible. It’s one thing to make an investment, but it’s another thing to put your money to work and let your money make you more money. On February 10th, even Coinbase took notice of this Vampire Attack in a tweet that point’s out, “there’s more to the numbers than one might think.”
As you can see in the chart, once people were given the chance to utilize a platform that gives back to them, the volume sided with the platform that makes the most sense for the users. Everyone wants the best bang for their buck and when you’re spending thousands of dollars on anything at all, it’s best to consider all options before pulling the trigger. Sure, you could go with the most popular platform, but that doesn’t necessarily mean it’s the best choice for you.
If you’re new to NFTs, LooksRare is compatible with MetaMask, WalletConnect and Coinbase Wallet. In the future, they plan on creating a DAO where LOOKS will be the governance token. Their smart contracts are built within a modular system that allows them to implement new features over time. New features coming soon include collection offers and trait offers. This is where you can put an offer on every NFT in the collection in one transaction or offer to buy any NFT with a specific trait such as Laser Eyes or Sunglasses. LooksRare doesn’t currently allow users to create new NFTs, but they do plan to launch a collection creation system sometime in the future.
In closing, the numbers and incentives speak for themselves ,and I would highly recommend that anyone who invests or who plans on investing in NFTs checks out the platform. In terms of users, OpenSea still controls the reins of the NFT space, but it seems like they’re going to have to adapt. Considering how new LooksRare is to the game and the numbers they’re putting up in a short amount of time, one has to wonder how long it will take for them to wear the crown. To me, this is simply a matter of education and awareness. LooksRare is looking like the next big thing.
Written by AJ Pleasanton
