LooksRare Review: What to Know About the Pros, Cons, and Features

LooksRare pros

There are a few different perks to using the LooksRare NFT marketplace for your NFTs, including:

Low fees

LooksRare fees tend to be cheaper than what you’d get with most competitors. The platform only charges 0.5% on transactions, while most other platforms charge a minimum of 2.5% on transactions that occur on their platforms. The new lower fees, reduced from 2%, come as an added bonus with LooksRare V2, launched in April 2023.

Option to bid on entire NFT collections

Unlike many other platforms, LooksRare allows you to bid on an entire collection rather than limiting you to a single NFT purchase. Plus, the platform allows you to buy through fixed sales or auctions, so there are other options when purchasing on this platform.

Earn LOOKS token rewards

If you stake, trade, or list on LooksRare, you can be rewarded with Looks tokens, the platform's native token. As of early August, the rate for staking was up to 50.39% APY, which means that staking on this platform could be extremely lucrative for the right person.

LooksRare cons

While there are certain perks you may get from using the LooksRare platform, there are also some potential downsides, including:

Limited payment options

The LooksRare marketplace runs on the Ethereum blockchain, which means you will need either ETH or wrapped ETH to use the site. The site does not accept debit or credit cards, and there's no way to pay using fiat currencies or even stablecoins, like USD Coin (USDC). The ETH requirement adds an extra step to the process and could make it hard to navigate for new investors who aren’t familiar with the crypto market.

Reports of wash trading

Another potential downside to LooksRare is that there have been numerous reports that the platform earning model essentially encourages wash trading because it rewards users for buying and selling. Wash trading occurs when one user buys or sells the same NFTs to different wallets, which can make NFTs appear more valuable than they truly are.

Limited functionality

There is no LooksRare app and the NFT marketplace can only be accessed through their website. What’s more is that there is no category-based search filter, which makes it tough to find specific kinds of NFTs, whether you’re looking for entertainment, art, music, or something else entirely. The only way to filter is by the name of the collection, by “buy it now” options and by price. This gives the platform the feeling of being unorganized.

LooksRare could be a solid option for those who are looking to pay fixed transaction fees and earn rewards on staking, trading, or listing NFTs. LooksRare redistributes 100% of the trading fees back to LOOKS stakers. If you want to mint NFTs, though, LooksRare is not the right platform for you, as the platform does not allow minting.

Ultimately, LooksRare is best for:

• Those who want to earn rewards: LooksRare is excellent for users looking to earn rewards from buying or selling, as it offers rewards for doing so. It also offers high APYs on staking, so it’s possible to earn in multiple ways on this platform.
• Those who want to pay set transaction fees: LooksRare charges a flat 2% transaction fee, which is one of the lowest fees charged by NFT platforms.
• Those who want a community-focused platform: LooksRare also has a very active community on Discord. Their Discord server features chats for different types of NFT enthusiasts, and bots to monitor trades.

The key features of LooksRare include:

• Ability to purchase collections: Users can make an offer on entire NFT collections rather than being limited to one NFT purchase at a time.
• LOOKS Token rewards: Unlike other platforms, LooksRare offers tokens for buying and selling, as well as for staking, which rewards you for completing basic transactions on the platform.
• Transaction fee distribution: LooksRare gives back 100% of its platform transaction fees to those who stake LOOKS tokens on the platform.

Users will always encounter at least some fees when transacting on an NFT market. When it comes to LooksRare, the platform is built on the Ethereum blockchain, which means you’ll need to pay ETH gas fees for your transactions. Gas fees vary by transaction depending on how busy the network is. In addition, LooksRare charges a fixed rate of 2% for transactions.

OpenSea: Good for minting NFTs

LooksRare doesn’t allow functionality for NFT minting, but OpenSea does. As the largest NFT marketplace, OpenSea makes staking, trading, and minting NFTs simple, and there’s no laborious vetting process for new creators to mint NFTs on the platform.

Gem.xyz: Good for buying multiple NFTs with one transaction

Gas fees can be costly on the Ethereum network, but Gem.xyz makes it possible for users to save money on gas charges by allowing multiple NFT sales in the same transaction.

SuperRare: Good for users who want unique NFT art

When it comes to finding unique NFT artwork, SuperRare is a great option. This platform targets users who are after very specific types of NTF artwork — and is home to some of the top NFT artists in the world.

Other NFT Marketplaces To Consider

• Blur
• Uniswap
• X2Y2
• OpenSea

Looking for more options?

Check out our list of top NFT platforms where you can buy, sell, and trade.

LooksRare could be just the ticket for you if you want an NFT platform that offers lower fees and the option to earn rewards from buying or selling. The rewards earned on this platform are distributed daily to users who are buying and selling, and the rewards system continues to draw new users every day. It’s also a great fit for users who want to bid or purchase entire NFT collections rather than purchasing one piece of art at a time.

If you’re interested in NFTs, LooksRare is worth looking into. This platform offers a slew of unique features to users and has managed to challenge the marketplace dominance of OpenSea. The low 0.5% transaction fee and rewards system are attractive perks, which is one reason why new users continue to flock to this platform.

And, while there are concerns about wash trading, the reality is that the LooksRare trading volume has continued to grow over time. Before you commit to purchasing NFTs on the LooksRare platform, though, you should make sure you take your time and research this and other platforms to ensure that it is the right option for you.

Methodology

MilkRoad.com reviews cryptocurrency and Web3 products, services, and companies based on five quantifiable metrics to help crypto users understand how they compare based on similar metrics. For the best NFT marketplaces, our editorial team compared supported wallets, integrated networks, 30-day trading volume, fees, and customer service.

• Is my crypto safe when using LooksRare?

  Expand to learn more

  Yes, your crypto is safe when using LooksRare. You don’t give the LooksRare platform custody of your tokens at any point, but you do need to connect your wallet to the exchange to store your cryptocurrencies and NFTs.  The main security risks for any NFT investor are issues with fraud, phishing attacks, and weak code. That said, LooksRare is incredibly transparent when it comes to third-party security audits.

• What fees does LooksRare charge?

  Expand to learn more

  The LooksRare platform charges a 0.5% transaction fee for transactions that occur in the marketplace. The LooksRare marketplace is also built on the Ethereum network, so in addition to that fee, the standard Ethereum gas fees you’d pay for any transactions on the network will apply.

• What wallets does LooksRare support?

  Expand to learn more

  You have your share of soption when it comes to wallets on the LooksRare platform. As of August 2022, LooksRare supports about 100 wallets using WalletConnect.

• Does LooksRare report to the IRS?

  Expand to learn more

  No, as there’s nothing to indicate that LooksRare reports to the IRS. But, you should self-report your NFT-related income, as they’re considered taxable assets by the IRS.