Wash Trading on LooksRare : OpenSea Still is the Dominant Player

NFTs sale have skyrocketed last year which has cleared the say for more marketplaces to enter into the sector.

LooksRare which is fairly a new NFT marketplace and was launched in January has been seeing a high volume in sales during the recent days. With the increasing sales on LooksRare NFT marketplace it was considered that LooksRare has exceeded in sales from it's globally established rival OpenSea.

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But How this Happened?

Now, it is being suspected that the willy NFT traders have been exploiting this new LooksRare NFT platform to extract heavy revenues by involving in Wash Trading of the digital collectables.

Wash Trading

Wash trading involves the buying and selling of a particular asset repeatedly by a trader in order to control the trading volume and the price of the market.

This acts have been considered not legal in US for traditional financial markets back in the year 1936. But since that crypto space has no regulation, so it has found it's way out here in the crypto related asset trading.

According to CryptoSlam, they have identified over $8 Billion of wash trade on LooksRare.

So far, LooksRare has not yet denied or accepted the news of wash trading happening on its platform.

Subtracting the wash trade volume from LooksRare, OpenSea turns out as the biggest NFT marketplace. Also the the real trading volume on LooksRare gets to around $ 2.6 Billion by subtracting the reported wash trade volume.

The number of users on Opensea is around 447,442 while LooksRare has around 25,220 users so far.

According to CryptoSlam:

We think that we are catching ~99% of wash sales as of right now, but we’ve found a few cases where we’ve missed what appear to be wash sales after some manual review. We’ll continue working to improve this algorithm as time goes on.
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Meanwhile Opensea also mentioned that the majority of NFTs created for free on its platform are plagiarized or either spam.

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