How this new NFT platform plans to make its users rich

So when people think about nfts they Think the only way you can make money is By buying jpegs but there’s actually Another way you can buy the applications That could end up being some of the Biggest platforms on the internet once Nfts do reach their full scale and just This week we saw the emergence of a Brand new marketplace called looks rare Which airdropped millions of dollars of Tokens for free to wallets that had Previously bought or sold nfts on openc Now why openc well because this is the Very platform that they’re trying to Disrupt and if they’re successful this Could be the biggest transfer of wealth That we’ve seen in the space you know From the private investors in openc to All the people that hold the tokens it Looks rare but not everyone is convinced And the competition is just getting Started so today we’re going to dive Into how to start using looks rare Including how to claim tokens and start Earning rewards then we’re going to talk About how it might fare against other Competitors in the space and why openc Is getting so much heat in the first Place now the hype behind these Platforms doesn’t really surprise me you Know we have a ton of historical Examples showing us that whenever There’s a gold rush the people who are Making the most money are often those

That are selling the picks and shovels This isn’t just a phrase it’s literally True and during the california gold rush In 1929 prospectors made far less than San francisco entrepreneurs like mark Hopkins who sold shovels and levi Strauss who sold canvas pants yes that Levi strauss and if we think about who’s Gotten the riches off of this nft boom That we’ve had over the last 12 months Well you know it isn’t pock the creator Who has already sold 280 million dollars Worth of art it isn’t yuga labs which is A team behind boarded yacht club and it Certainly isn’t me since i only get paid In likes which by the way is completely Free for you no the answer is actually Openc which took in over 15 billion Dollars in volume in 2021 and if you Apply their 2.5 platform fee to that Number it means they took in nearly 400 Million dollars in transaction fees Alone as a result openc got a valuation Of 13 billion dollars in their most Recent funding round meaning that their Two co-founders are now worth an Estimated two billion dollars each so These guys are the first nft related Billionaires that we have and they Certainly didn’t come from collecting Now one of the problems with all this is That web3 is about decentralization Whereas openc more and more are heading Down the road of centralization this

Means that they’re able to block or Censor projects that they think are Breaking the rules and you know that’s a Power that always gets abused they also Always seem to go to venture capitalists First whenever they want to raise money And there’s rumors that they’re even Exploring a potential ipo down the road Beyond all that people just don’t think They’re doing a great job as a company And they have pretty terrible customer Support as this tweet summarizes the User community doesn’t feel like they’re Being heard or cared about it’s that Simple and even though i expect them to Get competition this year from coinbase And ftx you know two companies with a Ton of resources and incredibly smart Teams those two are also centralized and Coinbase is even a public company so as A counterplay to all this we now have Decentralized community first projects You know popping up all over the place And it’s become clear that they have a Better chance of disrupting open sea Than people previously believed and they All have plans to make their users rich If they actually do reach that full Potential and there’s a few reasons to Be bullish on these types of projects in General first off lately we’ve been Seeing these projects launch their token By airdropping them for free to a large Group of users and if you think about it

This is pretty brilliant marketing Because it encourages thousands if not Hundreds of thousands of users to look At your project and maybe even try it Out and if the product is actually good And the price starts going up well you Just made a lot of people money and that Makes them you know more likely to stay Loyal to you over a competitor like open C but it’s even better than that because Holding these tokens as you’ll see in a Minute gives you an opportunity to earn Even more money by capturing some of the Fees that go through that platform in Other words whereas open seas profits go Back to the team and they’re private Investors these decentralized projects Give part of their fees or in some cases All of their fees back to the people who Hold the tokens which in many cases are The people who actually use the platform In the first place so this further Aligns the incentives between you know The platform and its users and makes it More likely that they’re going to choose To use that platform over something like Openc where they’re just a traditional Customer and this solves a very Difficult problem which is that you know How does a brand new competitor compete With openc which has all these network Effects and has been basically polishing Their product for the past five years Well one way to solve this is by giving

Your users so many incentives to Actually use your product that they’re Going to be more forgiving in those Initial you know beta stages and that’s Going to give you time to ramp up the Product to the point where you know they Might even prefer it over openc even if Those incentives were to go away all Right that’s enough theory now let’s Talk about looks rare which is the Fastest going marketplace at the moment Even surpassing openc and daily volume At one point this week although this is Driven by some trading that some people Consider to be shady and we’ll get to That in a minute now looks rare launched By airdropping a token to anyone who had Traded more than three eth on openc Which includes over 185 000 ethereum Wallets and as of the time of this video More than half of the wallets have Already claimed their tokens the current Price of a token is four dollars and it Has a market cap of over 400 million Which easily makes it open c’s biggest Competitor on layer one despite only Being out for a few days now why are People so excited about this well i can Think of two reasons you know one looks Rare launched with a fully functioning Nft marketplace that actually improves On some things that openc does now this Is rare in a space where everything is Often based on future promises and two

They’ve committed to distributing 100 of The fees earned through the marketplace Back to people who are staking the looks Tokens if you recall earlier we said That openc made 400 million dollars in Fees alone in just one year and if you Look forward to how big we think the nft Market is gonna get this is quickly Gonna turn into billions of dollars so That’s what’s at stake here and you Might be wondering wait a minute if 100 Of the fees are distributed to the Holders how is the team going to get Paid to continue developing the project Well the answer is that the team is Going to keep 10 of the entire token Supply which means that they’ll be Staking these and earning a chunk of the Rewards right alongside all the other Users now let’s break down all the ways You can actually earn money here so the First way is to actually stake the Tokens and i’ll show you how to do that Step by step using one of my wallets so The first thing i need to do is claim my Tokens and you’ll see that i have some Waiting for me but to claim them i first Have to list an nft so in this case i’m Going with this crypto coven and i’ll Throw a one-eighth price on it which is A good deal above the floor and that’s Something you can do if you just want to Claim the tokens without actually Selling anything once it’s listed i’ll

Go back and claim my tokens again and You’re gonna have to pay even more gas Because apparently this is just how we Do things in the future okay now i have My tokens and now i can choose to stake These and so i’m gonna go with the Standard option here and max out my Tokens and unfortunately i’m gonna have To pay yet another gas fee here at this Point i might just say you know it’s Just not worth it if you have a small Balance because i’m basically paying Like half the value of this airdrop just To stake it but you know we’re gonna do It for the content okay so now we’re Officially staking and we’ll be earning A percentage of all the trading fees on The marketplace and if you see here Those are pretty high expected apy we’re Gonna see how this actually shapes up in Reality because this depends on volume And the price of the looks token itself The second way you can make money Believe it or not is by actually trading Nfts on the platform so how this works Is that they have a list of verified Collections which include any collection That reaches 1 000 each trading volume On looks rare as well as a curated list Of 125 initial collections that they’re Starting with and basically you’re able To earn look tokens by buying or selling Nfts from those collections on the first Day alone people trading on looks rare

Earned a combined 5.7 million dollars in Tokens and just to show you how this all Works in practice this person here who Sold an m2 serum for 29 eth saved 0.145 Each because they’re paying a 2 platform Fee instead of 2.5 on openc and both the Seller and the buyer will earn extra Looks tokens the following day again the Amount of money you earn depends on the Price of looks and how many people are Splitting the pot with you and so in Most cases i don’t think this is going To be a lot of money but if you’re a Volume trader on openc this might Encourage you to move over and anyways People who are staking the tokens are Still going to earn a percentage of Those trades now these trading fees have Sort of caused an issue early on because You know when you have free markets and A bunch of crypto nerds who grew up Finding exploits in video games it’s not Going to take long for them to figure Out how to game the system specifically People figured out that if you take a Collection like me bits that has a zero Percent royalty rate and you buy and Sell it to yourself across different Wallets you can generate a ton of Trading fees with that volume as a Result volume exploded for collections Like me bits and loot and they quickly Ran up to the top spots on the entire Network now this seems to just be an

Early exploit that probably won’t last Long because as more traders come to the Platform you then have to share the Rewards with more people and the profits Go down and also because even though Something like me bits might have a zero Percent royalty rate you still have to Pay a two percent platform fee to looks Rare which by the way goes to everybody Who’s taking these tokens and so Everybody’s benefiting a little bit from All these trades okay so those are the Economics of looks rare but really this Is all mu if nobody’s using the platform So let’s take a look at whether or not This thing has a shot against openc now To be honest from my perspective this is Probably best described as a beta Product and while it’s you know good Enough to use i’m not gonna say it’s Unusable it is missing some key features That we’ve come to expect from openc Such as sorting by different metrics and Being able to list something for less Than a month to be honest i don’t think Anyone would be using this if it wasn’t For those airdrops and rewards and That’s okay because it’s obviously going To get better from here and they just Need to you know hold on to enough hype And volume to survive this initial phase Now with that said there is one feature That people are very excited about and That’s the ability to do collection wide

Offers instead of having to go one by One what this means is that if i’m Interested in say a cryptoed and want to See if anyone is willing to go below the Current floor i can hit this button here And make an offer across all the cryptos So anyone can take this at any point Which is something that until now was Really only practical if you had bots so At this stage i think it’s fair to say That there’s potential here but it’s tbd Whether or not they develop those key Features in time before all this initial Hype wears off okay so that’s looks rare In a nutshell but now i want to briefly Go over some other projects that people Have been buying into because it’s good To understand the competitive landscape The first one is open dao which also Airdrop you know free tokens to open c Users only a few weeks ago however one Difference is that open dial went with a Completely fair launch meaning that even The team didn’t get any special access To tokens whereas with looks rare the Team kept 10 percent of the supply now To be clear i have no problem with Developers getting paid for the work That they did on a project but the fair Launch does give open dow an origin Story that is kind of tough to beat now In terms of what they’re building Previously people believed it would be An open c competitor just like looks

Rare but they’ve actually changed it up And there’s now two different products The first is going to be a launch pad Where they partner with upcoming nft Collections and allow people to get Whitelist if they stake their sos and The other product and this might be some Breaking news alpha that’s coming Straight from the source it’s going to Be a prediction market where people can Essentially make bets on things like Whether or not the cool cats are gonna Flip the board apes and other people can Provide liquidity for those contracts Beyond that there isn’t much detail but It does sound pretty interesting and Something that i’m kind of surprised Doesn’t exist yet okay now a second Project worth mentioning is treasure dao And their magic token which i did a full Video on last week i recommend you watch That but the simple summary is that They’re building a cross-chain Marketplace and they’ve already built a Pretty polished marketplace for their Own metaverse games on arbitrary and the Treasure marketplace has at some points Already received more volume than any Marketplace other than openc itself and Just like looks rare the intention is to Return 100 of the fees from the Marketplace back to the community Although in this case it would be going To a community treasury and set up to

The users themselves which honestly Might be better from a long-term Perspective since they’ll have more Resources to build with now one of the Main differences between magic and looks Rare is that magic is going to be also Used as an in-game currency across a ton Of metaverse games and so there is going To be utility that goes beyond just the Marketplace and so in their model you Can ultimately have many communities That find value in magic simply because It plays a role in their favorite game Or project whereas looks rare does have Some mercenary risk which is when people Just drop one platform for another Simply because the economics look better And honestly that might not be different From what we see in d5 which is where People jump from project to project just Chasing better yields so as an owner of Both i do think magic is a little more Ambitious and they’re only about a Quarter of the market cap however looks Rare does have some serious momentum Right now and they’ve already introduced Some innovative features and so i’m not Going to discount a scenario where they Continue to take market share from openc And if the nft space keeps growing then Stealing even 10 market share could Still mean a lot of money for its users But one thing i can say with 100 Conviction is that this is just round

One and there’s no chance that we don’t See more emerging marketplaces in the Coming months and years alright guys That’s it for today thanks for watching And i’ll catch you at the next video