1 year ago

OVERVIEW
Looks Rare is one of the top NFT platforms. OpenSea is owns most of the market share, but Looks is an innovative platform, with solid revenue and good tokenomics.

THINGS I LIKE
Most tokens have already been minted. Capped supply at 1B with 600M locked in staking
The platform pays out 95% of the generated fees (2% right now) back to LOOKS stakers (1.5%) and NFT creators (0.5%). Returns are paid out both in WETH (real yield) and LOOKS
Their emission schedule of new tokens is entering the final face and the LOOKS rewards will be reduced in half. This means the inflation will be cut in half.
About 20% of the tokens are dedicated to the team, but they are staking it and this is the sustainable way they make money.
The team is expanding, even as we speak they have plenty of open positions.
We are expecting v2 of the platform + advanced metrics and stats for NFT trading

MY CONCERNS
Very low number of active users, lower than even X2Y2, which I think is their main competitor.
Weirdly, Token Terminal Revenue numbers for LooksRare are just 3-4 times lower than OpenSea. At the same time, Looks has a significantly lower number of users. So the revenue per user on Looks is so much higher that to me it looks unreasonable. Less than 800 active users in December generated about $2.6m in revenue. It might be the additional LOOKS rewards that people are getting from staking/trading.
The elephant in the room is OpenSea and it owns most of the NFT market. I don’t think this is about to change any time soon and Looks needs to always be innovating to at least get some attention.

FINAL THOUGHTS
If you believe NFTs are going to be here in the long-term, LOOKS is one of the rare ways to get a piece of the market without trying to buy jpegs. I like that they have real yield. I think that’s a narrative that people will start appreciating more and more in the coming years. What worries me that the competition is strong and that some of the numbers for the platform don’t add up. With that said, if I see a valid setup and NFTs waking up, I’m planning to have a position.

RESOURCES
https://tokenterminal.com/terminal/projects/looksrare
https://docs.looksrare.org/about/looks-tokenomics
https://docs.looksrare.org/blog

This video is for educational and informational purposes only.
I'm not a financial advisor.
Cryptocurrencies are high risk assets. Be aware of the risks before you decide to invest in any of them.
Do your own research and don't follow anyone blindly.

0:00 Intro
0:40 What's LooksRare?
1:26 Things I Like
6:37 My Concerns
11:11 My Plan

#looks

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