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Chainlink Whale Transactions Reach 2023 Peak Amidst Price Plummet

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In a recent tweet by Santiment, a leading cryptocurrency market analytics platform, it has been revealed that the number of Chainlink whale transactions has surged to an all-time high for the year 2023. 

This significant development comes at a time when the prices of LINK, a popular digital asset, have plummeted to their lowest point in three years, hitting a staggering $5.00 over the weekend.

According to Santiment’s data, it appears that mid-sized wallets containing 1,000 to 100,000 units of the Chainlink token, known as LINK, have been particularly active in accumulating substantial amounts of the cryptocurrency. 

Astonishingly a staggering 3.9 million LINK tokens, with an approximate value of $20.0 million, have been accumulated within the past week alone.

This surge in accumulation by mid-sized wallets indicates that some savvy investors and traders view the current market conditions as an opportune moment to acquire LINK at a highly discounted price. 

Despite the recent bearish trend, these market participants are positioning themselves for potential future gains, potentially anticipating a rebound in the digital asset’s value.

Chainlink Community Reaches 1 Million Milestone 

Adding some excitement, Rory, the Director of Community at Chainlink Labs, took to Twitter to celebrate a remarkable achievement—the global Chainlink Twitter community has now grown to an impressive 1 million members.

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In a heartfelt message, Rory expressed gratitude towards all the dedicated community members who have played an instrumental role in shaping the network into the thriving ecosystem it is today.

Meanwhile, LooksRare, a prominent platform for rare digital collectibles, has recently integrated Chainlink Verifiable Random Function (VRF) to power their provably fair LooksRare Raffles. 

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With an unwavering commitment to transparency, LooksRare has gone to great lengths to ensure a trustworthy and unbiased selection process. At the core of their system lies Chainlink VRF, a widely respected decentralized oracle network.

However, as the network continues to make waves in the blockchain industry, reaching an extraordinary milestone of 1 million community members, collaborations such as the one with LooksRare exemplify the practical applications and benefits of Chainlink VRF. 

Related Reading | Binance & Coinbase Under SEC Fire – Glassnode Report Unveils Investor Reactions

LooksRare Trading Volume Accounts for 95% Of Wash Trades

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LooksRare platform users are selling tokens to themselves to help gain incentives in the form of extra coins. The platform has swiftly become the biggest NFT marketplace by trade volume.

During the height of the NFT boom, two anonymous co-founders — Zodd and Guts — started the platform in January as a competitor to industry leader OpenSea.

According to a blog post at the time, the site aimed to offer additional features to entice NFT fans. Almost all of these projects have centered on the incentive scheme based on the Looks token, which is given to active platform users.

Wash trading is when a trader sells an asset that belongs to them to a wallet that they control.

It’s frequently an attempt to increase the asset’s price while simultaneously creating the illusion of demand. However, it isn’t the only reason LooksRare merchants do it.

LooksRare gained quite the reputation

According to statistics provided by NFT tracker CryptoSlam, over $18 billion of the platform’s trading volume, or nearly 95% of all activity, can be attributable to what’s known as wash sales.

When it comes to legislation, transactions are considered one of the numerous grey areas in crypto.

The sales are made in this situation to earn fresh tokens rather than to inflate nonfungible token values to entice naive purchasers. The fees collected by each transaction support the marketplace.

The popularity of wash trading on the marketplace is related to the platform’s incentives for active trading. While many people dislike the notion of wash trade, there are no laws against it.

Even if the wash traders’ goal is to gain tokens rather than pump prices, there’s little question that their actions conceal the actual status of the NFT ecosystem. As a result, many people have labeled it as market manipulation.

According to David Silva, a lawyer with knowledge of crypto subjects, it doesn’t matter if it’s stocks, bonds, or NFT.” Wash trading is a form of market manipulation in which an investor simultaneously sells and buys the same instrument to create misleading, artificial activity in the marketplace.”

Outside of trade, LooksRare is a tiny marketplace for NFTs compared to OpenSea, which has around ten times more daily active users, according to tracker Nansen.

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NFT marketplace LooksRare site restored after a brief DDoS attack

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Newly launched Nft marketplace LooksRare suffered a distributed denial of service or DDoS attack briefly in the late hours of Jan 29, 2022. Following this, the backend team responded in a short time, and within the minutes, the website was restored back again with users applauding the quick response. Some even threw a jibe at its larger competitor OpenSea.

This isn’t the first time the Nft platform has encountered a DDoS attack. On 11 January 2022, just hours after its launch, the LooksRare website became unavailable in the wee hours owing to the DDoS onslaught. Some users complained that they were not able to connect their wallets and list their NFTs. 

The team soon had the site back online though it was revealed that the wallet issue persists, with some users still coming up with other tethering problems.

LooksRare massive daily volumes a wash trading?

The manner in which LooksRare debuted this year hogged significant attention form the NFT community. Previously TronWeekly had reported the official launch of the marketplace that featured a vampire-style attack by enabling users to claim its native LOOKS tokens for free in an effort to poach users from the dominant rival OpenSea.

The attempt did manage to rake an eye-popping $105 million in trading volume just one day after it went live. As per data provided in the Dune Analytics dashboard, in a span of just 24 hours, the newbie non-fungible token marketplace has generated 613 ETH [nearly $2 million] in platform fees to be distributed to LOOKS token stakes in the coming hours.

Not only that, the fledgling digital collectibles marketplace has even surpassed Opensea in terms of daily volume in the same time period. Statistics revealed a total of 3,264 Looksrare traders have executed $385.39 million in sales on January 12, 2022, as the platform saw a 1,461% surge in daily volume.

According to CryptoSlam, LooksRare’s trading volume exceeded $8 billion in wash trades on 29 January 2022 but there is more than meets the eye. The platform is loaded with wash trading as users attempt to game the trading rewards model, according to the data aggregator.

NFT marketplace LooksRare debuts with an airdrop of LOOKS tokens

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LooksRare NFT marketplace announces its official debut and an airdrop of LOOKS token to users on the condition that they traded 3ETH or more on OpenSea from June 16th to December 16th, 2021. According to the launch post, LOOKS stakers can earn 100% of the transaction fees on the NFT marketplace [all NFT transactions have a 2% standard fee]. The platform which touts itself as the next generation NFT market, explained in the blog post that it indexes all NFTs that exist on the Ethereum blockchain in order to let users all the Ethereum NFTs that are available in OpenSea and others.

In addition to that, it also enables users to trade in these digital assets with Ether or Wrapped Ether [WETH], or a mixture of both, and make offers using WETH. LooksRare was started by two anonymous co-founders, known as Zodd and Guts backed by a small team consisting of nine individuals, most of whom engineers.

The LOOKS token which is being utilized to reward as well as draw users from larger rival OpenSea went live at 8:15 UTC this morning and is being traded on the decentralized exchange Uniswap. The asset saw a peak price of $4.71 before dropping to its press time price at $1.82. Currently, the platform is offering an extremely high rate of 30,400% APR to those staking the token.

LooksRare Vampire style attack on OpenSea

By enabling users to claim LOOKS tokens for free, the new marketplace is looking to entice NFT big spenders who are regular on OpenSea. This kind of attempt in the crypto sector is known as a “vampire attack” as one protocol tries to steal a competing platform’s user base. Back in September 2020, SushiSwap performed the infamous vampire attack that led to about $1.5 billion moving from Uniswap to SushiSwap.

Interestingly this is OpenSea’s second vampire attack, the first being inflicted by the then-newly launched NFT marketplace Infinity. This targeted the former’s user base with a similar airdrop on 8th October 2021. Having said that, one can also check the claim stats for the new NFT marketplace’s LOOKS token in the DuneAnalytics dashboard provided by hildobby.