LooksRare Team Cashes Out $30M in WETH, Faces Community Backlash

LooksRare has cashed out US$30 million in wrapped Ethereum (WETH), sparking outrage from its community. The price of its native token LOOK tumbled by 15 percent after news of the cash-out was made public.

LOOKs Can Get You So Far

LooksRare, the newest NFT marketplace that only launched in January, and which touts itself to be the OpenSea killer, has become the talk of the crypto town. This is particularly so after the team behind the project cashed out million in WETH.

LooksRare has confirmed that its core team cashed out around 10,500 WETH from the unattributed staked LOOKs. According to the company, the native token was used for paying fees on the platform but was also awarded to users when they sold NFTs on the LooksRare platform. The unattributed native tokens were cashed for ETH on the popular coin mixing protocol Tornado Cash.

Twitter Backlash as Token Tumbles

Following the news going public, the team at LooksRare suffered severe backlash from the community on Twitter and the price of LOOK tumbled almost 15 percent in the aftermath.

Look token tumbles on the news. Source: Coinmarketcap

One of the team members took to Twitter to defend the withdrawal and claimed that the team earning rewards in WETH was never kept secret from the community. The platform has also previously been involved in a report that suggests the majority of LooksRare NFT transactions may be ‘wash trading’.

One of the team’s core members, Zodd, added that the LooksRare team had been working on the platform for more than six months without any monetary compensation. He also said that the team fronted the seven-figure cost before launch.

Zodd also responded to a tweet that claimed nearly US$73 million had been cashed out, by providing the correct figure. Team members dismissed speculation regarding a probable rug pull and added that the platform was going nowhere and had big plans for the future.

Although the team member did provide clarification on the matter, the LooksRare community seemed unimpressed and suggested the team buy back the LOOKs instead of cashing out in WETH.

One user wrote in response to Zodd’s tweet:

Jana Serfontein

Jana Serfontein

Jana has keen interest in what cryptocurrencies have to offer in regards to NGO’s, governments and the financial system. And is also intrigued with the psychological effect that cryptocurrencies have on society.

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