Is LooksRare (LOOKS) a Good Investment?

Decided LOOKS is a good investment? You can get LOOKS on FTX today.

Without a doubt, 2021 was the year of non-fungible tokens (NFTs). Billions of dollars were transacted, and millionaires were made. However, NFTs have limited uses without somewhere to trade them. LooksRare is an NFT trading platform where users can buy, sell and create NFTs, giving you the functionality of a crypto exchange while also allowing access to one of the more unique aspects of the crypto market.

What Is LooksRare (LOOKS)?

As an NFT trading platform, LooksRare lets users browse NFT collections, purchase their favorites and create collections of their own. While this concept is not new, LooksRare is hoping to give more to its users by making these digital assets easier to manage.

The strongest way users benefit from choosing LooksRare is with rewards. Users can stake their LOOKS tokens and earn nearly 1,000% APY. Additionally, these rewards are derived from the trading fees collected on the site, so 100% of trading fees are distributed back to stakers. Users can earn LOOKS tokens for trading NFTs on the site.

LooksRare offers several other benefits, such as instant royalty payouts paid with digital currency, collection-wide bids and payment with a combination of currencies. However, the main benefit of the site is the rewards for stakers.

LOOKS is the token that powers the site. The ERC-20 token is built on the Ethereum chain. The token is primarily used as a rewards system, giving users the token from both staking and trading.

LooksRare (LOOKS) Price History

As of January 2022, LOOKS trades around $4.00 with a market cap of just under $1 billion. It’s likely the token will fluctuate significantly in the coming weeks as it is such a new token. This market cap gives it a ranking in the top 100 in terms of market cap. 

 In the first week of the launch, the token has seen a high of nearly $5 and a low of under $2. 

After the depegging of Terra and the steep decline of the crypto market, LOOKS was hovering around $0.20.

LooksRare (LOOKS) Competition

LooksRare’s largest competitor is OpenSea. This Ethereum-based NFT marketplace has been around for much longer than LooksRare and is more popular. However, LooksRare’s successful launch may be a sign of a change. 

OpenSea was launched in December 2017 while LooksRare was launched in early 2022. However, LooksRare burst onto the scene, posting nearly $400 million in sales in a single day, beating OpenSea’s daily volume on that day. While it is still early, this momentum may be a sign that Looksrare will be able to take significant market share from OpenSea.

It’s success is most likely attributed to the rewards offered by the marketplace. The staking and trading rewards attracted users, but its airdrop was perhaps what brought in the most users.

LooksRare Airdrop

A crypto airdrop is when users are given tokens for free for using an application. This process is often used to bring in new users by incentivizing the use of a platform. 

LooksRare held an airdrop in early 2022 that granted users rewards for listing an NFT on its site. The airdrop used a tier system to give out LOOKS tokens. Those who traded more ETH on OpenSea received more tokens. The lowest tier (3 to 6 ETH traded) granted users 125 LOOKS tokens. The highest tier (1,000+ ETH traded) granted users 10,000 LOOKS. The entire airdrop was limited to 120,000,000 LOOKS. The LOOKS tokens that were not distributed were taken back by the site and will be used for ecosystem development. 

How to Buy LooksRare (LOOKS)

If you are interested in purchasing LOOKS token, you can do so in multiple ways. The easiest method is to head over to FTX and purchase the token directly using your bank account. However, you can also purchase the token from a decentralized exchange (DEX). This method requires a wallet. In order to use a DEX, you'll need Ethereum which can be bought on Gemini, Coinbase, or eToro.

Best Hardware Wallet for LooksRare (LOOKS)

If you are looking to trade NFTs or stake on LooksRare, you will need a wallet. A wallet is essentially a PayPal account for crypto; users can take their money and use it in a variety of places. 

Best Hardware Wallet: Ledger

Hardware wallets are physical devices that store the private keys needed to send crypto. Without the physical device present, crypto cannot be sent.

Ledger is a leading brand of hardware wallet and supports LOOKS token. It currently offers Nano S and Nano X models. The Nano S is simple and provides necessary safety features while the Nano X is designed for ease of use, with bluetooth connectivity and a larger screen.

Bonus section: Keep an eye on the 24-hour volume on LooksRare, which functions as a solid indication of how many people are using the site.

Cryptocurrency Market Outlook

2022 has been a rough time for crypto investors. Major tokens have slumped significantly, and many are waiting for a reversal. 

Some speculate that a reversal is days or weeks away, while others do not see prices going back up for some time. Either way, make sure to keep track of crypto prices with Benzinga’s up-to-date price table.

Is LooksRare (LOOKS) a Good Investment?

As of right now, several factors contribute to the price of LOOKS. Massive sell-offs from the airdrop and rewards have caused some volatility. More airdrops or rewards could increase future volatility. Conversely, the uniqueness of the marketplace could attract new users and increase the demand for LOOKS. Either way, the future of LOOKS is in the hands of the people, just as the creators intended.