Out with OpenSea and in with LooksRare!
If you've been following the NFT space through Twitter, you'll know OpenSea is the community's most used platform to conduct NFT transactions. It's simple to use, supported by popular wallets like MetaMask and Coinbase Wallet, and has the largest network of NFT listings in the sphere.
It shouldn't be a secret that no one actually likes the platform. Just search through #brokensea on Twitter and you'll see what I mean. On top of all the sh*t talk, OpenSea isn't necessarily decentralized in its business model. It's backed by the multi-billion VC firm Andreessen Horowitz, and all fees on the platform go directly into the pockets of OpenSea owners.
And with the DAO phenomenon building new market entry opportunities for those wishing to become a pioneer in the transition to Web3, centralized platforms will now have steep competition from their decentralized counterparts.
I know what you're thinking. What other platform is he talking about? Is he trying to shill a new network like Solana or smartBCH?
Nope! Say hello to LooksRare, an NFT marketplace looking to take the throne from OpenSea. It's the first marketplace to put community members on a pedestal. As their motto emphasizes, LooksRare is:
By NFT people, for NFT people.
Nice motto! But are they following through on their promise?
Royalties
First comes the topic of royalty payment. Are artists being compensated quickly enough for their royalties on secondary sales?
payments happen on a monthly basis when an artist has “accumulated more than ~$60.00 worth of fees.”
On a monthly basis?! Artists trying to make a living off of NFTs won't ever be able to quit their 9-5s at this rate. People need the money ASAP to put food on the table, pay their bills, and maybe even have a life outside of NFTs.
Ok, that may have gone a bit too far. But like, come on, who isn't consumed by NFTs 24/7? Nothing to be ashamed of 😂
It doesn't stop there though. Even if artists have met the bare minimum, it isn't rare to see a lack of urgency in the payment schedule from the OpenSea team. As a result, some artists don't get paid for months.
This is because OpenSea processes payments manually. Crazy to think that such an established and profitable marketplace has yet to create an on-chain payment system to support its users.
LooksRare is changing the game with automatic, on-chain payments. Instead of waiting for weeks to claim royalty fees, creators can instantly claim their royalty as soon as a transaction is made within their collection.
+1 brownie points for LooksRare. What else is there to explore?
Fees
That's right! LooksRare's 2% fees on basic sales out-competes OpenSea's fee percentage. Plus, you get the added benefit of 0% fees on private sales!
This doesn't even reach the tip of the iceberg.
All trading fees go into the hands of LooksRare's stakers. Yup! There's a new token in town by the name of $LOOKS, and just with $SOS, NFT traders who meet certain requirements can claim free $LOOKS when listing their first NFT on the platform.
It's basically free money! Airdrops galore.
You could also opt to provide liquidity to the LOOKS-ETH pair on Uniswap to earn additional passive income. How cool is that?
My thoughts
OpenSea will always stick around. It was a first-mover in the NFT industry and has built a network worth millions, if not billions of dollars (or ETH I guess).
But this doesn't mean other NFT marketplaces can't dethrone OpenSea. LooksRare has already brought on countless popular collections like MAYC, CyberKongz, Doodles, and Alien Frens onto its platform.
They are refining their platform as time goes on, and listening to community feedback via their Discord server.
I am rooting for this project. I hope the NFT industry improves as community-led initiatives take a more prominent position in the market. It's time for a change.
Sources:
https://finance.yahoo.com/news/nft-marketplace-looksrare-goes-live-143055620.html
I am not a financial advisor. Please do your own due diligence before making a decision based on my article, as I am not responsible or liable for your investment decisions.
