LooksRare Review: The NFT Trading Platform

While LooksRare raises some eyebrows regarding its reputation, from a technical standpoint, it ticks all the boxes for safe trading. It operates as a non-custodial platform, ensuring it doesn't retain clients' assets. The founders diligently run security assessments, involving third-party independent audit firms. These audit entities delve deep into every operational angle, especially scouting for potential weak spots in the platform's codebase.

In a proactive move, the team has introduced a reward mechanism for developers pinpointing system lapses. Beyond this, there are additional user-centric features worth noting.

Advantages of LooksRare

1. Low Fees. LooksRare charges a 2% commission on sales, which is more competitive than many rivals that typically charge 2.5% or more. A gas fee is also applied, but this is a standard procedure for all platforms operating on the Ethereum blockchain.

2. Platform Rewards. Users can earn LOOKS (the LooksRare token) through staking, trading, and listing NFTs. 

3. Option to Bid on Entire Collections. This approach is particularly beneficial for substantial investors. 

4. LooksRare’s APY surpasses those of similar platforms. Though it fluctuates, there have been instances when the rewards for staking on LooksRare peaked at 60%.

5. Daily Prize Draws. Every day, traders can participate in rounds offering a chance to win a modest amount of ETH.

LooksRare holds daily random ETH giveaways. Source: looksrare

Drawbacks of LooksRare

The platform's challenges unfortunately outnumber its benefits.

1. Restricted Payment Methods. LooksRare limits transactions to ETH and WETH. This barrier might deter newcomers, especially those inclined towards fiat or diverse cryptocurrencies.

2. Confined Features. The platform lacks essential categorization tools, which complicates finding specific NFT types. Without knowing the precise title and artist, locating a desired asset can become cumbersome amidst an exhaustive list, given the inability to streamline searches for, say, musical NFTs or metaverse land parcels.

3. Absence of a Mobile App.

4. No Support for NFT Minting. This limitation might deter creators from embracing the platform.

5. Single Blockchain. LooksRare runs solely on the Ethereum blockchain. This means users might encounter higher gas fees compared to platforms that support multiple blockchains.

6. Narrow Wallet Integration. While supporting mainstays like MetaMask, WalletConnect, and Coinbase Wallet, LooksRare could benefit from a broader cold storage wallet spectrum.

7. Founder Anonymity. Beyond digital pseudonyms, no more information is disclosed about the LooksRare visionaries.

8. No Fiat-NFT Purchase Pathway.

9. No Royalty System.

One key concern for traders exploring NFT platforms is the frequent accusations aimed at LooksRare for allegedly manipulating asset prices. The practice of “wash trading” on this platform appears to drive users towards deceptive behaviors since it rewards every trade they make. Consequently, the perceived value and popularity of most NFTs on the marketplace may be grossly inflated, making the pursuit of genuinely unique assets challenging.

A significant portion of the market suspects that LooksRare artificially inflates its trading volumes. If situations arise where traders continually resell NFTs to themselves, then authentic price determination is virtually nonexistent.

Final Words

LooksRare might not be the top choice for newcomers, dedicated collectors, or artists keen on minting their creations. 

However, the platform could appeal to those eager to profit from market fluctuations. This group might include crypto enthusiasts frequently involved in Pump&Dump schemes with certain shitcoins.

LooksRare's APY outperforms many other platforms. Source: looksrare

So, if you favor transparent trading standards and the intuitive interfaces found on platforms like OpenSea or Blur, LooksRare might fall short of expectations. Still, personal preferences always play a part.