LooksRare team cashes out $30M in WETH, faces community backlash

LooksRare, a nonfungible token (NFT) market touted to be the OpenSea killer, turned the speak of the NFT world after the workforce behind the challenge cashed out thousands and thousands in Ether (ETH).

The NFT market confirmed that the core workforce has cashed out 10,500 WETH estimated to be price $30 million from the unattributed staked native token LOOKS. The native token was used for paying charges on the platform and was additionally awarded to customers once they offered their NFT on the platform. The unattributed LOOKS tokens had been cashed out for Ether on the favored crypto mixing device Twister Money.

Reported LooksRare Twister Money Deal with Supply:EtherScan

The workforce acquired heavy backlash from the group on Twitter when the information turned public and the value of the native token LOOKS additionally tumbled by almost 15% within the aftermath. Nonetheless, one of many workforce members took to Twitter to defend the withdrawal and claimed that the workforce incomes rewards in wrapped Ethereum was by no means a secret.

Zodd, one of many core members, added that the LooksRare workforce has been engaged on the platform for over six months with none financial compensation and had fronted the seven-figure price earlier than the launch.

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Responding to a tweet that the workforce has cashed out almost $73 million in WETH, Zodd corrected the determine and claimed the precise quantity was about $30 million. The workforce member additionally dismissed speculations of a possible rug pull and claimed they’re going nowhere and the way forward for the platform is brilliant. 

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The LooksRare workforce informed Cointelegraph that the withdrawn WETH was a small portion earned from the buying and selling charges and no LOOKS token has been offered. The workforce additionally added that 80,000 WETH was distributed amongst LOOKS stakers previously 30 days.

The LooksRare group appeared unimpressed by the clarification behind the cash-out and advised that the workforce buy again the native token as a substitute of cashing out in Ether. One person wrote:

“Love that you simply handle this like “we have not been paid for six months.” So every workforce member simply cashed out over 3 million USD (for six months’ work) leaving the general public bag holders broke with a shitty chart like this? Joke…. community-driven lol. One other crypto unhappy joke tbh.”

One other person questioned the motive of utilizing a mixing device for cashing out and wrote:

“So why twister it? Looks as if you kinda bought caught cashing out and now injury management.”

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