A rare bubble burst? Half of users in two days

As OpenSea reiterated that it focused on public start-ups (IPOs), the trading platform was malicious for "return value for users", so LooksRare arose, which distributes a platform form of value trading to hold tokens and airdrop gifts to users. to start.

On January 10, the Lux Rare NFT marketing campaign was launched, a LOOKS token airdrop was provided to eligible OpenSea users, and a 721-day marketing reward mechanism was also launched.Every day, 2,866,500 LOOKS are distributed to all professional users.Users can also join LOOKS to report all exchange rates on the platform.

Lux Lair quickly gained market support by protesting OpenC's inconsistency of "not sharing benefits with users". Satisfied with the gift market, LookRare's packaging industry in the next 10 days has always been the number one NFT exchange.

However, the mining industry has always "killed thousands of enemies and lost 800". In order to get more benefits, consumers often choose to buy and sell part of NFT at a higher price.As a result, LookRare's average NFT trade value is over $500,000, higher than OpenSea's by $1,200.

The mining industry brought great benefits to early entrants and sales grew rapidly. From January 21-22, LOOKS fell over 40% from $7.1 to under $4, outpacing the losses of UNI and ETH at the same time. Due to the low prize pool, LookRare lost 50% of its current users, down to 969.

In fact, the roller coaster performance of Lux Rare has been mentioned. Although recent transaction volume has overtaken OpenSea,However, the number of modern users is only 1,000-2,000, while the number of OpenSea users is stable between 40,000 and 50,000.Poor data performance indicates a boom in LookRare errors and downtime close to brushing teeth.

LookRare has some improvements over OpenSea in terms of marketing and giveaways, but ultimately still owns the NFT market with first mover advantage, used writers and clients, and it's hard for anyone to replace them.

LOOKS fell by more than 40% in two days and the number of users on the platform was halved.

OpenSea, the largest NFT platform in the world, has been the subject of controversy in recent months. Early NFT writers and stockbrokers were disappointed with consumers when they learned that the market was dropping major market prices and on-chain oil prices, but was still raising funds and needed an introduction in stock Exchange. OpenSea, like Uniswap, is widely expected to offer airdrops to all users to bring value to the platform, although this has become less and less common.

Recently, a decentralized organization called OpenDAO attempted to "shut down" OpenSea. The campaign announces that it will release SOS tokens for all users who trade on OpenSea and create new NFT services. OpenDAO took advantage of this for a while, but the project was gradually forgotten due to the low cost of the SOS token and the lack of performance in its implementation.

However, the problem with OpenSea still exists: developers are more prepared and must respond directly to user needs to adapt them. LookRare is one such power.

On January 10, marketing company NFT LooksRare announced and announced the LOOKS airdrop policy to consumers. As a general rule, from June 16 to December 16, 2021, users with a trade volume of 3 ETH or more on OpenSea should order NFT before requesting NFT.

Lux Rare Market Page

The airdrop came back, and by then Lux Rare was ready, and by the time the airdrop came, he had already taken over the NFT industry. This new "abalone story" is even more interesting.

With the support of its own business model, LookRare can do even more. There is the mining industry, the “killer movement” that attracts the most traffic in the cryptocurrency industry. Of course, LookRare rewards every professional customer with 2,866,500 LOOKS per day in the first month. The airdrop will last for 721 days, but the rewards will gradually decrease in the future.

At the same time, in order to launch new sale tokens daily, LookRare has implemented a contract strategy. In other words, users who pledge LOOKS will be able to share all trade prices incurred in the trading industry. Earnings vary widely.

With its products and campaigns, LookRare quickly broke the NFT industry. On the day of its release, Lux Rare's trading volume reached $320 million, twice that of OpenC. Since then, according to data from DappRadar since January 22, the seemingly low transaction volume has exceeded $500 million in the past 24 hours, ranking #1 in the NFT industry and #1 in OpenC. $180 million in the packaging industry, second. LOOKS also rose once by $3 to $7.1.

The dazzling news had LookRare fans shouting the tagline "OpenSea Balance".But the "murderous movement" of trade and mining has always "killed thousands of enemies and lost 800".The mining industry has benefited a lot from the early entrants, but after receiving the LOOKS award, few people seem willing to commit to sharing operating costs. When LOOKS hit $7.1 there was a lot of selling. at the store.

From January 21-22, LOOKS fell over 40% from $7.1 to under $4. and ETH by 23%.

The fall in the market value of LOOKS not only resulted in a loss for a group of investors who bought at a higher price, but also had a direct impact on the activities of the Lux.Lair platform.According to data from DappRadar, the number of 24-hour business users of the platform on January 22 was 969, down more than 50% from the previous day.

Found that some users are gone.

Result Rare Anamalous Stats

LookRare has been online for more than 10 days so far, but tokens and tokens are off the roller coaster. Whether it was a drop in the number of transactions or half the value of the token, illegal data at the initial stage posed hidden risks.

According to DappRadar, over the past 10 days, LookRare data volume has remained high, but user numbers have dropped, indicating that user numbers are far from OpenSea.

As of January 11, when Look Rare launched, user count was 3,200, the highest since its inception, and OpenC users were 42,800.The number of stealth users dropped daily from 1,500 on January 14 to 768 on January 21. During this time, OpenSea users regularly numbered between 40,000 and 50,000, and in terms of the number of users, the number of OpenSea users is about 30 times. that of LookingRare.

The difference, despite the differences in the number of users, the volume of business of LookRare is several times greater than that of OpenSea.Despite LOOKS dropping in value on January 22, volume traded at over $500 million, or $143 million in OpenSea trading that day.

This illegal data highlights the "false success" of LookRare due to the mining industry. A LookRare user told Honeycomb Financial that wrapping brushes on the NFT manufacturing process is very easy and efficient. Most people choose to buy or set up NFTs at a very low price and then buy and resell them multiple times at a higher price. packaging industry to introduce a variety of mining gifts.

That means there's a lot of water in LookRare's huge business. For small users, many do not need to trade in real life, buy and sell the same NFTs multiple times and increase their own volume of business.

According to DappRadar data from January 22, the average NFT exchange rate of Lux Low is above $500,000, compared to the average price of OpenC at $1,200 and Magic Eden at $261. .

LookRareNFT has an average trade value of over $500,000.

"It's no exaggeration to say that Lux Rare is a fake boom."A senior NFT executive told Honeycomb Finance the cost of brushing was the same. Brush is automatic and buying and selling a few NFTs has little impact on improving overall company revenue.

look back,From the start, Lux Lair had no choice but to lower the market and run tokens due to poor data.After swipes appeared in the market today, as the price of LOOKS continued to drop, gifts for swipes were also reduced. Some users believe that LookRare will suffer more for future users and the value of the token might be the same. Enter the lower section.

After a short period of time, LookRare needs to think about how to attract consumers with real business needs. After all, catching up with OpenSea and increasing the number of users through innovative products is the way to go.

In fact, beyond mining, LookRare has made some improvements to OpenSea.

In terms of exchange rate,LookRare charges 2% for a trade, 2.5% for OpenSea, OpenSea developers have to wait two weeks to receive revenue from developers who received the debt, and LookRare developers will receive immediate compensation when they sell their job.Additionally, LookRare supports mixed payments. This means that if the user does not have enough ETH or WETH to pay for the order, they can combine the payment with other valuables in the wallet. one of the NFTs at the same time; Of course, the most important difference with OpenSea is that LookingRare insurers can share the full market exchange rate.

Judging from the process and improvement of the products mentioned above, Lux Rare is a good product. However, OpenSea has the latest first-mover quality and user-friendliness, and it is not easy for LookRare to quickly reach the former.

According to industry insiders,Compared to OpenSea, LookRare is similar to the relationship between Solana and the new public chain like Ethereum. Based on performance and previous experience, the former would be better, but both OpenSea and Ethereum have developed a head.It is an important block of value that cannot be broken with the support of many designers and developers.

Moreover, it takes a lot of money to run the NFT exchange. Previously, OpenSea secured $300 million in Series C funding. To date, OpenSea has raised over $420 million. In addition to the financial benefits, OpenSea has a huge daily revenue stream and LookRare has decided to share the operating costs with its users. . , can be supported in the community, but the financial strength of the two is very different.

OpenSea has top notch performance with a wide range of developers and users, and sufficient investment. In order to replace LookRare or other laggards under this "tool", many challenges will have to be faced. Yes, with LookRare now, the negative effects of the mining industry must be dealt with first, and they can slowly get back on track when the platform is not flooded with prosperity is not true.