When talking about NFTs, it often doesn’t take long for OpenSea to come up. The most famous marketplace where millions of dollars in NFTs are traded daily is a household name within the crypto market. There are many different marketplaces for NFTs, which sometimes seem to grow as fast as the amount of NFT collections. However, there can only be one greatest.
The year 2022 could just be the year that this will change. For example, there are exchanges that see the usefulness of NFT marketplaces, but also marketplaces outside the exchange see opportunities. LooksRare (LOOKS) is an example of this. This relatively new marketplace aims to become the largest NFT marketplace. How do they want to achieve that? In this article, we take a full look at LooksRare!
What is LooksRare?
LooksRare is an NFT marketplace, which focuses on providing a user-friendly trading platform. Through LooksRare it is possible to buy and sell NFTs, which is quite normal for an NFT marketplace. However, LooksRare has big ambitions and wants to realize these ambitions through big plans. There are many NFT marketplaces out there, so you need to have good plans to stand out among all the marketplaces.
LooksRare tries to achieve this by using a low trading fee, which amounts to a total of 2%. When you compare this to OpenSea, the largest marketplace of recent years, LooksRare is cheaper in terms of fees. Especially if you are going to trade in expensive collections such as Bored Ape Yacht ClubThis can be very useful, In addition, there are more features that give the platform an advantage. LooksRare has its own token, which you can also stake on the platform. This is quite unusual for an NFT marketplace, especially for marketplaces that do not belong to exchanges.
The LooksRare token: LOOKS
The LOOKS token is the token of the LooksRare ecosystem. The token serves as a reward for activities on the platform, which will be further explained below. LooksRare has a number of unique features, in which LOOKS plays a major role. Whether these features ensure that LooksRare will become the NFT marketplace is a question for the future. However, the fact is that LooksRare’s plans are refreshing and innovative! Below we take a closer look at the benefits of the LOOKS token.
LOOKS Token Strike
When you strike LOOKS tokens, you will earn extra LOOKS tokens as a reward for staking your coins. In addition, you will also receive WETH, which stands for Wrapped Ethereum. You receive this reward through the trading fees that traders make on the platform. In total, 100% of the trading fees goes to the strikers. LOOKS tokens are earned in four different phases. This includes various rewards, which are based on a fixed number of Ethereum blocks per day. Below you can see the distribution of these four phases.
Oftentimes, investors who stake their coins have to manually rework their return on the investment over and over again. This costs time and money, which LooksRare prevents. Thanks to auto-compounding, as an investor you don’t have to constantly look at the clock, but you can assume that your staking rewards are automatically put to work. As a result, you will receive more and more LOOKS, so that you can earn income in a passive way.
LOOKS Token Trading
It is very easy on LooksRare to earn LOOKS tokens. When you trade NFTs on the platform, you are eligible to earn LOOKS. This applies to both buying and selling NFTs. The rewards for this are calculated daily and paid out to the users daily. Previously, the rewards were only for collections with a trading volume of 1,000 ETH or higher, but this limitation has been removed by the team.
LOOKS Token Tokenomics
In total there are 1 billion LOOKS tokens. You can see how these are distributed in the image below. The number of tokens reserved for the airdrop. In addition, it is good to see that the team only owns 10% of all tokens.
Most crypto projects own a significantly larger share of the tokens, whether or not through vague constructions. This can be very problematic for investors when the team tries to dump the tokens. By owning a small percentage of all tokens as a team, you automatically gain the trust of the investors and traders.
Buy LOOKS Tokens
If you have confidence in LookRare, it is possible to invest in the project itself. You can do this, for example, by buying the coin of the project. The LOOKS token can be purchased through various trading platforms.on about 30 different platforms is possible to trade with the coin
The most famous names where you can buy LOOKS are Uniswap (UNI), Gate.io, and Bybit. Of course, it is possible that the coin can be found on more well-known exchanges in the future. However, for a coin that was released very recently, the offer is very large. Few tokens are offered for sale in the first month through about 30 platforms.
LooksRare (LOOKS) price
Since January 10, 2022, the LooksRare coin can be found on Coinmarketcap. Despite the fact that the first weeks of the crypto market are characterized by sideways price action, the price of LOOKS has risen noticeably. The LOOKS price went from $2.22 to over $6.20 in just over a week. Because of the different ways in which you can get LOOKS, it is important to see what this does to the price. If traders immediately sell their LOOKS rewards, this could have a negative effect on the price.
In addition, the crypto market also offers opportunities for the future price of LOOKS. January 2022 is not characterized by euphoric price action. Many investors have been waiting for their coins for months, not wanting to hold the way up. If the crypto market enters an upward trend and the adoption of LooksRare continues to increase, this could be very beneficial for the price of LOOKS. However, do your own research before deciding to invest in anything.
Suitable wallet for LooksRare
If you want to use LooksRare, there are several wallets that you can connect to the platform. Thanks to WalletConnect it is possible to connect to the LooksRare platform via more than 100 different types of wallets. For example, you can use your Metamask wallet or use your Coinbase wallet on the platform.
The only problem is the Trezor. Trezor does not currently support EIP-712, so the affected devices cannot be used. LooksRare is still a very young project, which discovered this problem at a very early stage. That offers opportunities for the future, so the problem may already have been solved by the time you read this article.
The LooksRare Team
You can find it on the project website. Here you will not find an actual first and last name, but nicknames and illustrations as a profile picture. The team consists of 12 team members, none of whom make their LinkedIn known. However, each person has made his Github account known. Github is not a social media platform, so there is little information to be found here.
Some team members can also be found on Twitter. An example of this is LooksRare’s co-founder called Zodd. Besides Zodd, Guts is also a co-founder. The other team members mainly focus on the development of the product. Slug and Arya take care of the design, communication, and marketing, resulting in a total of 8 team members working daily with the LooksRare product.
LooksRare on social media
If you want to stay informed about the developments surrounding LooksRare, you can follow the project via various social media platforms. For example, the project has an Instagram account, where they have about 1,200 followers. However, the LooksRare team is not active on this platform at all. They made one post, with an image of their logo. As LooksRare is still a relatively young project, the focus may not be on Instagram for now, but this could change in the future.
A social media platform where the team is active is on Discord. LooksRare has its own Discord channel, with approximately 52,000 members. Like thousands of others, you can use this platform to stay informed about the developments surrounding LooksRare. In addition, Twitter is also a platform where you can follow the project. The team is very active on Twitter, where several posts appear daily. It is, therefore, no coincidence that the most followers are reached via this platform, namely more than 145,000 followers.
Despite the fact that LookRare looks very promising, there are always downsides to a project. Also for LooksRare, the project has points that you can discuss. For example, the competition for LooksRare is a major challenge. OpenSea has the advantage of the adoption and brand awareness that LookRare has yet to get. Besides OpenSea, there are countless NFT marketplaces that LooksRare will compete with.
Each blockchain has its own marketplaces, each of which has its own characteristics. Examples include Solsea and Solanart on the Solana blockchain, Artion on Fantom (FTM) and SuperRare, Mintable, Immutable X, and Nifty Gateway on the Ethereum blockchain. So the competition is extremely fierce, but LooksRare has unique features that can help them in the competition.
In addition to all the different NFT marketplaces, there are also more and more exchanges that are developing their own marketplace. All trading platforms that are among the largest worldwide have their own NFT marketplace or are in the process of doing so. From Coinbase and Binance to FTX and Kucoin. These platforms have millions of users, who can trade NFTs very quickly and easily thanks to these developments. This convenience is a big advantage of these exchanges, which a large part of investors can easily use.
It is perhaps the niche within the crypto market, which is the most competitive. NFT marketplaces are established as quickly as the NFT collections themselves. Each blockchain has multiple NFT marketplaces, which means there is a lot of competition between them. Fortunately, NFTs are a very large market, which can be of value in almost any industry. For example, there are NFT marketplaces that focus on items from certain games, or NFT marketplaces that focus on digital art.
However, the fact that an NFT marketplace will reward users for buying and selling NFTs is unique, which is a big plus for LooksRare. In addition, it is also very interesting that you can stake on the platform. The return before staking is very attractive. However, the return is not something that stays the same forever. This may of course change in the future.
There are some NFT marketplaces that also offer staking, but these are mainly exchanges that offer both services. However, exchanges do not offer as high a return as LooksRare currently does (over 500%, LOOKS, and WETH rewards together). LooksRare’s ambitions are high, which is reflected in their plans. However, the NFT market is a relatively young market, so a lot can still happen before it becomes clear which marketplaces will really play a major role in the crypto market.