Since LooksRare developers withdrew about US$30 million of its native LOOKS token and paid out in wrapped Ether, trading volumes on non-fungible token (NFT) marketplace LooksRare have decreased by more than half (wETH)
LooksRare was averaging daily sales volumes of over US$550 million until the creators began paying out wETH using Ethereum mixing provider Tornado Cash in early February, and the price dropped more than 50% overnight.
Similarly, the LOOKS token has lost nearly 60% of its value since February 10 and was trading at US$1.69 at press time.
Developers allegedly paid out 23,116 wETH (US$73 million at the time). Then, and ran it through Ethereum mixer Tornado Cash on February 8. However, LooksRare developer Zodd later confirmed the value to be closer to 10,500ETH.
After putting up substantial sums of money for the project, several employees had not been paid in over six months. That’s, according to Zodd. So, the team earned wETH, which is publicly available information.
LooksRare debuted on January 10 and rapidly surpassed OpenSea as the most popular NFT marketplace. Although, it has lately slipped behind the older exchange in terms of sales volume.
LooksRare rewards users with LOOKS tokens depending on sales, although some industry observers allege. Of course, that this method has led to many users participating in wash trading. Thereby, artificially inflating LooksRare and their own sales volumes.
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