The new kid on the block, LooksRare, has done more exchanging volume than OpenSea afterward its launch. But is there more to it than meets the eye?

LooksRare’s exchanging volume exceeded $8B in wash trades today, according to CryptoSlam. On LooksRare, a new NFT marketplace, 2866500 LOOKS cryptocurrencies are awarded to traders exchanging certain NFT collections daily. The traders are allocated LOOKS cryptocurrencies based on the exchanging volume they undertake on a particular day. LooksRare delivered $20M or more in daily LOOKs rewards afterward the company’s inception on Jan. 10, 2022. After 30 days, the daily rewards halve, so it advances to be seen whether excessive dealing volumes persist thereafter. After the launch, LooksRare users were selling Meebits and Loot for $50M worth of Ethereum (ETH). The price on OpenSea for a Meebits NFT the week before on OpenSea was 4.1 Ethereum (ETH).

How is wash dealing inflating volumes?

Traders can send NFTs between their own Ethereum (ETH) wallets and artificially inflate the prices of NFTs. The more sales volume genecostd, the greater the reward of LOOKS cryptocurrencies. According to Dune Analytics, LooksRare has seen $9.5B in Ethereum exchanging volume. By cross-referencing data from Dune Analytics and CryptoSlam, 87% of LooksRare’s exchanging volume to date was genecostd through wash dealing.

Most of the wash dealing comes from NFTs which don’t attract royalty fees although sold on OpenSea or any other secondary marketplace. Meebits genecostd $4.4B in wash trades, Terraforms $2.9B, Loot $7.05M and CryptoPhunks $251M.

CryptoSlam employs multiple methods to filter out wash dealing data from its metrics. Firstly, they wrote an algorithm to detect wash sale transactions. They have reshiftd wash sale transactions from their metric “NFT Collection Rankings By Sales Volume.” They have likewise added a UI feature to indicate a wash sale for most collections.

LOOKS holders can earn stsimilarg rewards

Users which earn LOOKS cryptocurrencies can stake them to earn rewards in wrapped Ethereum (ETH), with an Annual Percentage Rate of 480.77%. On Jan. 28, 2022, LooksRare distributed WEthereum (ETH) 261 ($10.2M). The WEthereum (ETH) rewards can be used to offset the 2% flat market transaction fee for trades. On Jan. 28, 2022, LooksRare expanded its dealing rewards to include any listed NFT, not scarcely special collections like Meebits.

Terraforms directly sits atop the pile on LooksRare with respect to 24-hour dealing volume of 127105.92 Ethereum (ETH), followed by Meebits with 101315.3 Ethereum (ETH). OpenSea above again leads the way with regards to total transactions and total users afterward LooksRare launched.

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