LooksRare is one of the leading Non-Fungible Token marketplace. One the other hand, it is a prominent competitor to OpenSea. Recently, the platform has confirmed the cash-out of $30 million worth of Ethereum coins. Following the measures taken by the NFTs market, the community has been outraged. Indeed, the platform which was launched as OpenSea killer recently has confirmed that its official team has made more than $30 million in cash out from the staked tokens of the platform’s native token, LOOKS.
Why LooksRare cash-outs staked tokens?
According to the NFT marketplaces declared fee structure. The brains behind the project have amassed millions worth of wrapped Ethereum through staking unattired LOOKS tokens. Notably, the tokens are commonly used as a fee compensation. In contrast, users receive LOOKS when they sell an NFT.
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Moreover, the unattributed tokens were staked and allows LooksRare’s crew to get massive amount of WETH tokens. Layter the WETH tokens could be cashed out through mixing protocols like Tornado Cash.
It is also worth noting that the latest updates highlight that the team behind the NFTs marketplace has already cashed 23116 WETH. However, the $73 million worth Wrapped Ethereum does not include the value of LOOKS. Furthermore, it has been underscored that most of the tokens went directly to Tornado Cash.
LooksRare’s team spoke to the users?
Following the measures of cash-out, the team behind LooksRare spoke out on his Twitter handle. According to the member, the crew had been working for more than half a year without receiving any remuneration, income, or rewards.
It is noteworthy that LOOKS, LooksRare’s functional cryptocurrency, a community driven NFTs marketplace that actively pays investors and creators for affiliates. And following the withdrawal of LOOKS by the team, the price of the token plunged significantly.
The outraged community were unsatisfied and demanded the team purchase back the tokens rather than keeping the millions of dollars in Ether.
However, the lengthy explanation does not prevent the token from plummeting further.
Source: https://www.thecoinrepublic.com/2022/02/15/looksrare-causes-outrage-within-the-nfts-community/