Cryptocurrencies
The Hottest NFT Marketplace is Mostly Users Selling to Themselves
- LooksRare encourages users to trade via Looks token incentives
- Trading has effectively helped to mask the cooling NFT demand
The NFT LA conference on March 30.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
A closer look at the LooksRare platform that has quickly become the leading NFT marketplace by trading volume shows that most of the activity is actually users selling tokens to themselves to help earn rewards in the form of more coins.
The platform was launched in January by two anonymous co-founders -- who go by Zodd and Guts -- as an alternative to market leader OpenSea during the height of the NFT boom. The site had planned to add new features to lure NFT enthusiasts, according to a blog post at the time. Almost all of those initiatives have focused on the incentive program built around the Looks token awarded to active users of the platform.