Following the formal debut of NFT marketplace LooksRare on January 10, the daily volume on the platform has already surpassed $394 million.
To attract this consumer base, it also charged only 2% fees on basic sales and zero fees on private sales, as opposed to the competition OpenSea, which charged 2.5% fees on every trade. Additionally, the project allows traders to receive rewards in the form of the project’s native LOOKS token for purchasing and selling NFTs through its platform.
Among the most popular NFTs on LooksRare are the Meebits collection, which comes from LarvaLabs — the same company that brought the famous collections Cryptopunks and Autoglyphs.
The NFT craze has been going high, as many were saying during September last year that it has the potential to hit $10 trillion annual sales. As TheCoinRise reported, OpenSea, along with Cryptopunks and Axie Infinity, already made more than $10 billion in sales the same year.
Wash trading by LooksRare is not the favorite of everyone
As per the data from DappRadar, Meebits are now the most popular collection available on the market at the time of publishing. The fact that DappRadar has included a caution to emphasize the potential wash trading that is occurring with Meebits on LooksRare is worth highlighting as well.
Other traders are suspicious of wash trading in the same way. Colin Wu, a journalist, has documented a number of fraudulent transactions that have occurred over and over again. According to Wu’s report, “Transaction volume of Meebits has reached 52,771 ETH. Whales are constantly repeating transactions to obtain Tokens.”
In another instance of mistrust, a Meebit NFT was sold for $49.5 million in Ethereum on Wednesday, according to reports. This trade, investors allege, was dishonest since the combination of implementation of LOOKS incentives along with Looksrare’s zero percent royalty encourages wash trading.