The LooksRare NFT platform is now among the top choice for digital artwork enthusiasts. The new platform is a direct competitor to OpenSea and sold $400 million worth of NFTs in just three days post-launch, on 10th January. On the very first day sold $100 million worth of NFTs.
The NFT platform’s native token Looks Rare was airdropped to the wallet addresses of its users. The token also allows users to stake their LOOKS and earn a 1,000% annual percentage rate (APR), their website stated on the first day.
However, since its price dropped, the APR now stands around 800%, which is still considered to be quite lucrative.
Moreover, a Twitter user dived into the prospects of how realistic the 800% APR stands for LOOKS and came up with an impressive theory.
“On the first day of the $LOOKS airdrop, the APR was > 2600%. Today it is down to 800%. Is this a trend or is this sustainable? And if so, for how long?,” the tweet read.
“Let’s first understand what APR is and how it is calculated. APR = Annualized Percentage Rate. Refers to taking the annual rate of return WITHOUT compound interest. Ex. 500% APR: $1 => $5. Currently, $LOOKS is expected to return 8x your original investment in a year.”
The Twitter thread concluded that LooksRare needs to keep its pace intact to be able to deliver an 800% APR.
“In summary: 800% APR unsustainable after 30 days. $LOOKS needs real trading volume to sustain price. High temporary APR tokenomics => market awareness + community ownership. @LooksRareNFT needs to build a great product that new NFT traders want to use.”
You can go through the entire thread below:
LooksRare Has A Promising Future
LooksRare (LOOKS) is up +125.8% since the last 7-trading days. The token is consistently delivering profits while its NFT marketplace is sustainably scaling by selling NFTs worth millions daily.
Firstly, users trade on LooksRare as it offers less or no fees based on the type of transactions. Secondly, LooksRare levies only a mere 2% fees on basic sales and takes no fees on private sales on NFT pieces. On the other hand, its competitor OpenSea charges a fee of 2.5% on every form of transaction made on the platform.
The fees being cheap compared to other platforms is what makes LooksRare stand apart from the crowded NFT space. LOOKS is also displaying extreme bullish sentiments and could hit a new all-time high in the next bull run.
The first week has been a dream run and the Twitter user summed it up with,
“What an incredible first week of $LOOKS —> Overall this is a bullish case study for web3: You are no longer the product. You are the owner. You profit from marketing and using the product.”