A team from one of the largest NFT marketplaces in the industry, LookRareconfirmThe $30 million withdrawal from Ethereum upset the community that this was a way to make huge profits without stealing users’ funds.
According to the market’s official fee structure NFT The project team will receive millions of WETH rewards for staking unattributed LOOKS tokens. And whenever users sell their NFTs, they are rewarded with LOOKS tokens which act as fee compensation.
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To address this:First off, the amount is incorrect: it’s closer to 10,500 ETH and we have 10+ full-time team members.
You can verify the amount on the blockchain by checking ETH transfers sent out on the analytics tab from the team address.https://t.co/Z4Qkv5T02a
— Zodd
(@ZoddLooksRare) February 14, 2022
The aforementioned tokens are staked, allowing the team to receive a large number of wrapped Ethereum tokens, which they subsequently pour those WETH through a mixing service.
Later, one of LooksRare’s team members made a statement on his Twitter account and stated that the team had been working for over half a year without any compensation, salary or reward, for which funds transacted from the platform would be distributed. with all 10 members of the market, while some funds have already been used to buy NFTs.
As for the transfer to the mixing service, Zodd, one of the team members, explained that All their staff work anonymously. therefore do not want to reveal their identity
This has left the community dissatisfied with the answer. and called on the team to buy back the LOOKS tokens instead of retaining the millions of Ethereum and due to massive withdrawals. As a result, the original token price of platforms like LOOKS lost more than 15% of its value in a matter of hours. Unfortunately, the detailed explanation did not help the token price to stop further falling.
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