LooksRare was introduced as a community-centric NFT marketplace, offering various rewards and lower fees to challenge established players such as OpenSea.
LooksRare, a new operator in the non-fungible token (NFT) marketplace, launched with a mission to revolutionize how NFT collections on the Ethereum blockchain get indexed and traded successfully. Co-founded by anonymous figures Guts and Zodd, LooksRare is now positioning itself as a community-centric alternative, promising to prioritize developers and users over corporate interests.
A notable introduction by LooksRare is a token airdrop aimed at OpenSea users who have traded a minimum of 3 ETH worth of NFTs within a particular time.
Empowering Creators And Users
At the core of LooksRare’s philosophy is the desire to create a platform that genuinely benefits its entire community. Notably, the marketplace rewards sellers and buyers with its native utility token, LOOKS, for transactions involving eligible NFT collections.
That innovative rewards system is a massive shift from the traditional transaction fee model and strives to boost a highly engaged and active community. Moreover, LooksRare has set its transaction fee at 2%, slightly lower than OpenSea’s 2.5%, intending to distribute the fees to users who stake LOOKS tokens.
Opportunities And Challenges
Despite having a promising start, LooksRare encountered technical challenges early on, including a temporary website shutdown because of a DDoS attack on its launch day. That hiccup highlights the vulnerabilities new platforms can encounter but also highlights the increasing challenges and potential threats originating from competitors.
On the brighter side, the timing of LooksRare’s launch coincides with the Associated Press confirming its dive into the NFT market, highlighting a growing acceptance and diversification of NFT platforms. LooksRare’s groundbreaking strategy of rewarding its community makes it unique in a crowded marketplace and might pave the way for a new era of NFT trading.
Market Impact And Prospects
LooksRare’s entry into the NFT market seems to be shaking up even the established norms and challenging the dominant operators like OpenSea. By offering lower fees and rewarding the users directly, LooksRare is appealing to current NFT traders and enticing new users to join the thriving ecosystem.
The notable success of LooksRare might result in a wider shift in the way the NFT marketplace works, with a major emphasis on community rewards and user-centric features. As the platform keeps developing and expanding its offerings, the NFT community will keenly watch to determine whether LooksRare can maintain its momentum and fulfill its promise of being a marketplace ‘By the people of NFT, for the people of NFT.’
