Are the majority of trades on LooksRare unethical?

LooksRare is one of the most exciting up and coming NFT marketplaces, but a recent look into its activities may point toward unethical behaviors on this platform

LooksRare: A strong contender

LooksRare is a scintillating NFT marketplace that has cemented itself as a respectable and strong player in the NFT space. LooksRare might not be as large as OpenSea, but comparing it to OpenSea isn’t fair in the platform’s growth journey.

OpenSea is so extensive that the second-placed NFT marketplace in trading volume doesn’t come close to this powerhouse. That’s enough about OpenSea for now; we’re here to talk about LooksRare, and how this company’s impressive growth numbers might be motivated by unethical and borderline illegal activity.

LooksRare has managed to set itself apart as more than just an OpenSea alternative, and many people that have used this platform have nothing but praise for the team behind the project. For a while, speculations have run rampant as to a large percentage of the trades on this platform being unethical or “wash trades.”

The practice of users selling NFTs to themselves is rife in the NFT space, and this is because one of the significant measures of success for NFT projects is the number of people trading in its tokens. So this has motivated projects and individual owners to prop up the appeal for their assets by trading NFTs between an arrangement of NFT wallets.

Wash Trading is killing the NFT Ecosystem

When we talk about “Wash Trading,” we’re talking about fake trading, and a simple way it occurs is when NFTs are uselessly recycled between users. Wash trades are not real sales, as the trades inflate the actual value of an asset or project, leading to a false sense of growth, accomplishment, value, and more.

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