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CryptoSlam, which collects data on the sale of NFTs, confirmed the information that users of the LooksRare market are artificially inflating the turnover of non-fungible tokens.
According to CryptoSlam, 95% of the $18 billion NFT trading volume on LooksRare came from fictitious transactions where people bought unique tokens from themselves.
LooksRare ranks second among NFT trading platforms in terms of the value of sold tokens over the past day with a figure of $ 96 million. If you subtract 95% from this amount, the site will still remain in second place, because the trading volume of its closest competitor Mobox is only $1.36 million
Top 10 Platforms by NFT Trading Volume
LooksRare customers purchase NFTs from themselves to earn bonuses. Once a day, the market distributes LooksRare (LOOKS) coins between participants in transactions for the purchase and sale of tokens. On April 5, the platform will give users 1.4 million LOOKS worth $3 million at the current exchange rate.
The popularity of the marketplace is not only due to the generous rewards for NFT trading. Firstly, the market charges a commission of 2%, and the top platform OpenSea charges 2.5%. Secondly, LOOKS staking brings a decent income – 248.7% per annum.
Pedro Herrera, lead data analyst at DappRadar, noticed a gradual increase in the volume of real transactions on LooksRare. He explains this phenomenon by the fact that it is more profitable to sell NFTs on this platform. Due to the lower commission, owners of expensive tokens can save up to 1-2 ETH ($3500-7000).
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