LooksRare Official Team Cashed Out $30 Million Worth of Ethereum, Community Gets Mad

The staff of one of many largest NFT marketplaces within the NFT business, LooksRare, has confirmed the cash-out of $30 million price of Ethereum cash, which made the neighborhood livid. This is how {the marketplace} managed to make such a big sum with out stealing any customers’ funds.

Staking of LOOKS tokens

Based on the official charge construction of the NFT marketplaces, the staff of the challenge has obtained hundreds of thousands price of WETH rewards by staking unattributed LOOKS tokens. At any time when customers promote their NFTs, they obtain a reward in LOOKS tokens that often acts as a charge compensation.

The unattributed tokens have been staked, which allowed the staff of {the marketplace} to obtain an infinite variety of wrapped Ethereum tokens, which they later cashed out via a coin mixing answer.

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To deal with this:

First off, the quantity is wrong: it’s nearer to 10,500 ETH and we’ve got 10+ full-time staff members.

You’ll be able to confirm the quantity on the blockchain by checking ETH transfers despatched out on the analytics tab from the staff tackle.https://t.co/Z4Qkv5T02a

— Zodd 👀💎 (@ZoddLooksRare) February 14, 2022

One of many staff members of LooksRare later spoke out on his Twitter account and said that the staff was working greater than half a yr with none compensation, wage or rewards. The funds that have been transacted from the platform might be distributed among the many 10 members of {the marketplace}, whereas a few of these funds have already been used to purchase varied NFTs.

As for the utilization of the coin mixing answer, one of many staff members, Zodd, has defined that the entire staff is working anonymously. Therefore, it doesn’t need to be deanonymized by cashing out such giant portions of digital belongings.

The neighborhood was not happy by the reply and demanded that the staff make a LOOKS token buyback as a substitute of protecting the hundreds of thousands price of Ethereum. As a consequence of a giant cash-out, the platform’s native token, LOOKS, has misplaced greater than 15% of its worth in a matter of hours. The detailed clarification, sadly, didn’t save the token from falling additional down.