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

LooksRare, a non-fungible token (NFT) marketplace advertised as an OpenSea killer, has the team behind the project Ether (ETH).

The NFT Marketplace has confirmed that the core team has cashed out 10,500 WETH, which is estimated to be worth $ 30 million from the non-attribute bet native token LOOKS. Native tokens were used to pay on the platform and were also awarded when users sold NFTs on the platform. LOOKS tokens without attribution were cached out to Ether with the popular crypto mixing tool Tornado Cash.

Reported Looks Rare Tornado Cash Address Source: EtherScan

When the news came out, the team received a lot of community backlash on Twitter, and the price of the native token LOOKS has since fallen by nearly 15%. However, one of the team members used Twitter to defend the withdrawal, claiming that the team that earns rewards on wrapped Ethereum is by no means a secret.

One of the core members, Zodd, added that the LooksRare team had been working on the platform for more than six months without financial compensation, accelerating seven-digit costs before launch.

Related: Gamestop Partners with Immutable X for NFT Marketplace to Announce $ 100 Million Grant to Creators

In response to a tweet that the team cashed out about $ 73 million in WETH, Zodd revised the numbers and claimed that the actual amount was about $ 30 million. Team members also dismissed speculation about the potential of Ragpur, arguing that they went nowhere and that the future of the platform was bright.

The LookRare team told Cointelegraph that the withdrawn WETH was only a small part of the transaction fees and the LOOKS tokens were not sold. The team also added that 80,000 WETH has been distributed to LOOKS stackers over the last 30 days.

The LookRare community didn’t seem to be impressed with the clarification behind the cashout and suggested that the team buy native tokens instead of cashing out at Ether. 1 user I have written:

“I love dealing with this like” you haven’t been paid for 6 months “. So did each team member cash out just $ 3 million (for a six-month job) and leave the public bag holder broken on such a silly chart? Jokes …. community-led laughs. Another crypto sad joke tbh. “

Another user questioned the motivation to use the mixing tool for cash out, I have written:

“Then, why did the tornado occur? It seems that it is involved in cash out and is in damage control.”