NFT marketplaces are generally places where traders go to buy and sell NFTs, but that's all there is to them. However, a major part of the Web3 project is in building communities which are linked by more than just a transaction. LooksRare is a marketplace for NFTs built with a community-first ethos, where traders are rewarded for participating.
LooksRare isn't alone in the NFT space, competing primarily with OpenSea, the leading NFT trading platform. There are also a plethora of smaller competitors aiming to chip away at OpenSea's market dominance, such as OpenDao(SOS). LookRare seems to have an edge in its professional presentation and lower trading fees, undercutting OpenSea's rate. It also incentivises buyers and sellers with its own LOOKS token. This has been popular but has led to accusations of "wash trading", where traders fake deals to gain tokens and artificially boost the platform's trading volume.
Going forward, LooksRare is aiming to take a bigger chunk of the NFT market by attracting business away from OpenSea, primarily by increasing the financial rewards to its community members. It is also working to reduce the impact of wash trading on its network by imposing transaction fees, making this kind of activity unprofitable. Time will tell if this will increase trust in the platform which will be vital in its long term struggle for market share.
Freddie
Company Specialist at Welcome to the Jungle
