Upstart NFT marketplace LooksRare challenges OpenSea’s dominance

Upstart NFT marketplace LooksRare challenges OpenSea’s dominance

Upstart non-fungible token (NFT) marketplace LooksRare launched with a bang this week, transacting over US$1 billion in sales after only debuting on Jan. 10. Total sales figures are more than 40% of market leader OpenSea’s entire sales volume for the past week, according to DappRadar.

LooksRare has achieved this sales volume with only a fraction of the users of OpenSea. On Jan. 13, LooksRare’s sales volumes were more than five times higher than its main competitor, yet it did so with less than 3,000 users, compared to OpenSea’s 70,000.

Some have argued the NFT boom was drawing to a close after a peak in August, but sales volumes on LooksRare alone suggest strong demand remains in the market.

While LooksRare’s figures may seem hard to believe, the platform’s controversial incentive structure reveals how this may have been possible. LooksRare launched by airdropping its native LOOKS token to any OpenSea customer who had spent more than 3 ETH in the second half of 2021. This tactic is known as a “vampire attack” — when one platform uses incentives to lure away users from another — and LooksRare is the second major effort of its kind against OpenSea, the first being Infinity in October last year.

LooksRare says its systems ensure that any wash trading would be unprofitable, as daily LOOKS rewards are fixed while each transaction incurs fees, disincentivizing the practice. Though one industry watcher told Forkast the practice is clearly occurring.

“They did expect [wash trading]; it wasn’t ideal sales but they couldn’t prevent it,” said Yohann Calpu, CryptoSlam’s chief blockchain officer, telling Forkast the NFT aggregation company is trying to track authentic sales figures on the platform for a more accurate representation of the platform’s performance.

Calpu also said that while OpenSea maintained more than 90% of the Ethereum NFT market share, LooksRare has shown competitors can challenge this dominance by offering new features.

Despite the region being such a strong driver for the market, no major NFT marketplaces are based in Asia — both OpenSea and LooksRare are based in the U.S. Anndy Lian, Singapore-based founding member of NFT creative studio Influxo, told Forkast this is a product of the global nature of the technology, which proves that as long as the content is quality, it will be able to find a market.

“We are now in the crypto space; everything is international, everything is global,” he said. “As long as there is the right kind of intellectual property, NFT creators who have that following can [list it] anywhere, and they will get their fans in that region to buy it. Now the market is global, truly global.”

Taiwanese superstar Jay Chou showed this to be the case recently with his NFT collection PhantaBear. Chou’s collection topped Bored Ape Yacht Club’s (BAYC) sales volume on OpenSea earlier in the week with more than 18,000 ETH (US$57,630) in sales volume in the past week — 10% more than BAYC’s for the same time, according to CryptoSlam.

“They do not hesitate because they know that by buying there’s a chance to appreciate in value and also the fact that it is a form of status — unlike some friends in the U.S.,” he said, “because the mindset is different.”

 

Original Source: https://forkast.news/upstart-nft-marketplace-looksrare-challenges-opensea/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Does content moderation on platforms like OpenSea amount to censorship?

Does content moderation on platforms like OpenSea amount to censorship?

What are the responsibilities of blockchain companies when it comes to freedom of expression? A controversial cartoonist finds out the boundaries.

“I would describe myself as a transgressive artist,” the conservative cartoonist who calls himself Stonetoss, told Forkast.News. On Nov. 20, Stonetoss released 5,000 non-fungible tokens based on characters found in his work, listing them on Rarible and OpenSea NFT marketplaces. Calling his cartoon characters “Flurks,” Stonetoss said the sale was a huge success, selling out in just over 20 minutes for a total of 420 ETH worth US$1.8 million.

But hours later, both Rarible and OpenSea pulled the Flurks series from their listings without offering an explanation why, adding fuel to the debate over content moderation in the growing NFT marketplace.

Stonetoss is no stranger to controversy — he says he has received death threats in the past — which is why he only wished to be identified by his artist name. His cartoons often depict right-wing interpretations of issues regarding race, LGBT+ rights and vaccine mandates. While the Flurks themselves do not contain any explicit commentary, they do contain imagery relating to these themes, such as Confederate flags and red MAGA hats that are popular with Donald Trump supporters. Stonetoss believes his art was delisted due to the politics that he is associated with, rather than based on the actual content of his NFTs.

But is getting kicked off OpenSea and Rarible a troubling form of “censorship” and an infringement of artistic freedom, as Stonetoss says, or is it within these companies’ right to include only content that they like? With OpenSea alone controlling over 98% of the Ethereum trading volume market share, according to DuneAnalytics, do these blockchain marketplaces have a moral obligation to do more to defend freedom of expression, even if the views may be odious to a majority of its users — especially for a blockchain-powered industry that often champions decentralization as a safeguard to censorship?

Industry leaders themselves seem divided on these issues, and the extent of obligation and responsibilities of blockchain companies when it comes to freedom of expression.

“Whenever we talk about decentralization, it’s not about a cowboy town where you could just come in with anything,” Anndy Lian, founding member of NFT creative studio Influxo, told Forkast.News. “You have to follow the rules.”

Just as a physical gallery has the right to decide what art they wish to exhibit, Lian says NFT platforms are no different — and just because an expression exists as an NFT does not excuse it from the cultural consequence of its message.

“If the artist or the artwork is subjective, there is a chance that it will be removed,” Lian said. “This has nothing to do with [whether it’s an] NFT or not. This happens in the art world, in galleries too. This is surely not about decentralization and decentralization is not about just freedom.”

But others say that’s not really a choice when dealing with centralized systems like OpenSea or Rarible, when combined they effectively control the NFT marketplace — until better systems come along.

“If a company makes a decision that a user doesn’t like, they have the option to leave,” says said Corey Petty, chief security officer at decentralized messaging app and Web3.0 browser, Status, in an interview with Forkast.News. “If you don’t have that option, then companies can do whatever they want and you just can’t do anything about it. Which leads us to where we are today. [They] made a decision. What are you going to do? Leave? There are no other options.”

Stonetoss says he feels singled out by the right-wing politics usually associated with his brand rather than individual Flurks being offensive. The NFTs that got delisted from OpenSea and Rarible also contain symbols associated with the left, such as the rainbow pride flag and the communist hammer and sickle.“If I was a no-name artist, this would not have been the controversy or it would have not have received the reaction that it did,” Stonetoss said in a Zoom audio interview with Forkast.News with the camera turned off.

According to Rarible staff, the platform does not de-list items based on political affiliation. According to OpenSea’s terms of service, OpenSea will delist NFTs if they are determined to incite hate or violence against others.

“The delisting of my NFTs on Rarible and OpenSea was probably the result of a mass report because this is the technique [campaigners] have tried to use many times. The NFTs themselves, I maintain, are benign.”

But least one Twitter user spoke out about the inclusion of some of those symbols on NFTs hosted on the platforms, who said they are anything but benign: “I am losing followers for calling out a project blatantly using confederate flags in their NFTs. I am a racial minority, I grew up in the south, and my uncle was murdered because of the color of his skin.”

Another user in the same thread summarized the debate surrounding the use of the Confederate flag — which represented the slavery-defending states of America’s South, which lost the nation’s Civil War over 150 years ago but is still clung to with nostalgia by some Whites in America — by replying: “Sorry to hear this, I’m from the South and don’t know the pains of dealing with being a minority, I also know people that love the south who don’t look at the confederate flag as racist, I guess it’s hard to know people’s hearts and perspective, we can all learn and grow and show love.”

Neither OpenSea of Rarible had contacted Stonetoss to notify him of the delisting by the time he spoke with Forkast.News. At least one Flurk displayed on the homepage of Stonetoss’s website is wearing a cowboy hat and carrying a Confederate flag.

Rarible and OpenSea did not respond to Forkast.News inquiries for comment.

Will Stone decentralized Web3.0

As the world enters the realm of Web 3.0, Stonetoss’ story represents the glaring need — or cautionary tale, depending on your perspective — of how a decentralized version of the internet built around blockchain technology can dramatically change the gate-keeping powers and kind of content of public platforms.

“What we have is an emergent property of how the internet was built in the first place, that is the client-server model,” said Petty, of Status.”When you aggregate data and pool things like this, it’s inevitable that the people who are custodians of that information will take advantage of it” — including trying to control it in a way to maximize profits.

“That’s where we are today,” Petty added. “We build applications, they aggregate data. They then learn they can monetize that data; they optimize the application for monetization, not the end user.”

With a total trading volume of over US$13 billion, according to DappRadar, OpenSea might be the most important venue for digital artists to find buyers for their NFTs. Stonetoss says his delisting from the OpenSea NFT marketplace was not only a blow to him financially but also might have chilled creators of other controversial art. While Flurks holders are still able to transact peer-to-peer — his NFTs are de-listed but not deleted from the Ethereum blockchain — the infrastructure and culture is not yet available to allow the community to trade with the same ease as they would on a platform like OpenSea.

While the Flurks are not locked out of being traded — Stonetoss also sells them through his own website — OpenSea and Rarible have such an outsized influence on the market that any NFT collection that is not listed on one of these platforms is at a significant market disadvantage.

If the decision-making power to list or not list NFTs for sale were decentralized, would Stonetoss’s Flurks have suffered the same fate?

The moderating voice

In August this year, a series of 7,000 NFTs based around the popular meme Pepe the Frog — a mascot of Hong Kong’s pro-democracy movement in 2019 as well as a symbol championed by America’s far-right —  was removed from the OpenSea NFT marketplace after the character’s original creator filed a notice of copyright infringement with the platform.

OpenSea was quick to remove the content on copyright infringement grounds, but investors were left holding millions of dollars worth of NFTs with no significant marketplace left to trade them.

But when a collection of NFTs that look a lot like Flurks went up on OpenSea, the unauthorized copycat series remains listed on the site.

But should Stonetoss one day decide he wants to enforce his copyright, a truly decentralized platform is likely not going to act on user complaints.

“There is a long history of art that is transgressive and there should be a place for it,” Stonetoss said, admitting he would have trouble finding a physical gallery to display his work, which is why his medium has always been online.

“Those sorts of avenues are even more susceptible to people complaining about having a particular piece of art up,” Stonetoss said. “So, on the whole, I’m actually very optimistic; the whole de-listing event has been a little disappointing in that regard, but I guess it’s part of the growing pains of this sort of technology.”

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j