LooksRare Halving Imminent: Brace for Changes, But Wash Traders Are Here to Stay
The LooksRare NFT marketplace is about to undergo a significant change as its halving approaches, marking the end of Phase A at 195,000 blocks and the beginning of Phase B. As LooksRare enters this new phase, expect visible changes in $LOOKS token distribution. This shift comes at a pivotal time for the platform, which launched with a token airdrop and the promise of being "by NFT people for NFT people."
Wash Trading on LooksRare: A Persistent Issue
Despite the impending halving and changes to $LOOKS tokenomics, one issue continues to plague the LooksRare marketplace: wash trading. Reports have emerged that the trading activity on LooksRare largely stems from this practice. LooksRare NFT analytics firm CryptoSlam reported today that it has identified more than $8.3 billion worth of wash trading from LooksRare, making up the vast majority of trading volume. Analytics firms like Dune Analytics and CryptoSlam have observed that despite a small number of daily transactions and users, LooksRare is generating billions in trading volume, a clear indication of artificial activity.
Si bien el wash trading ha sido altamente regulado y monitoreado de cerca por los exchanges y los reguladores, parece haber encontrado su nuevo camino en el espacio. While wash trading has been heavily regulated and closely monitored by exchanges and regulators, it seems to have found a new path in the NFT space.
Understanding the Impact
This is definitely not a playground for casual NFT buyers. With 2% platform fees, royalties, and gas fees varying from the Ethereum network, wash traders still seem able to find a reasonable profit. The ongoing presence of wash trading casts a shadow over the authenticity of the marketplace and distorts the true value of NFTs listed on LooksRare.
LooksRare vs. OpenSea: A Battle for NFT Supremacy
What’s happening here is that LooksRare is doing a pretty good job of drawing traders away from the leading NFT marketplace Opensea. Arguably, that was the platform\'s initial goal. LooksRare’s highly awaited launch took place on Monday with a token airdrop $LOOKS. However, the long-term effects of wash trading on the platform\'s reputation and sustainability remain to be seen.
Key Takeaways
- The LooksRare halving is approaching, bringing changes to $LOOKS distribution.
- Wash trading continues to be a significant problem on the platform.
- Be cautious when buying or selling NFTs on LooksRare due to the prevalence of wash trading.