Our take on LooksRare
The bottom line
LooksRare has gained a tremendous amount of momentum within the NFT marketplace. Both the 2% transaction fee and rewards system are attractive perks that are hard to overlook. However, there are some issues to note with wash trading, but they aren’t a deal breaker. Just be sure to approach with caution.
Best for earning NFT rewards
On LooksRare's website
Thirty Day Trading Volume
While non-fungible tokens (NFTs) have been around for a while, 2021 was a banner year for NFTs. A huge supply and even larger demand for NFTs appeared, seemingly overnight, and it felt like the entire globe was buzzing about the world of non-fungible tokens. In addition to an explosion of traditional NFT marketplaces, blockchains like Cardano and Solano added functionality to support NFTs. Prestigious art houses also began selling NFTs, and even the world-famous Christie’s Auction House got on board, selling a Beeples NFT for a whopping $69 million.
But it wasn’t just businesses that got on board. Individual crypto investors did, too. In 2021, the number of wallets trading in NFTs had expanded to 28.6 million, up from just 545,000 in 2020. And, that same year, NFT trading volume reached the $17 billion mark — a 21,000% increase from the prior year.
One of the NFT marketplaces that NFT investors are currently turning to is LooksRare, a well-known marketplace with high trading volume and a large number of NFTs available for trading. Some of the draws of LooksRare are that it offers low fees, LOOKS token rewards, and the ability to bid on an entire NFT collection. And, while it’s not the top NFT marketplace — that award goes to OpenSea — it has made headlines recently, thanks to the marketplace originating the top 27 most expensive recorded sales across the entire NFT industry, totaling $1.3 billion. But while it’s clear that this NFT marketplace is a big draw for big-time investors, is it right for you? Here’s what you should know.
LooksRare pros and cons
- Low fees compared to other marketplaces
- Option to bid on an entire collection
- Can earn LOOKS token rewards
- Limited payment options
- Reports of wash trading
- Limited functionality
There are a few different perks to using the LooksRare NFT marketplace for your NFTs, including:
LooksRare fees tend to be cheaper than what you’d get with most competitors. The platform only charges 2% on transactions, while most other platforms charge a minimum of 2.5% on transactions that occur on their platforms. That 0.5% may not seem like a big difference, but when you’re transacting at the high purchase prices NFTs can command, it can be a significant savings opportunity.
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.
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.
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.
Who LooksRare is best for
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.
Key features of LooksRare
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.
Fees for using LooksRare
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.
|Sales transaction fee||2%|
|Ethereum gas fee||Varies based on transaction and network congestion|
Alternatives to consider
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.
Is LooksRare right for you?
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.
Final thoughts on LooksRare
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 2% 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.
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.
Frequently asked questions
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 2% 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.