NFT trading platform x2y2 launches vampire attack on OpenSea

(Original author: Osato Avan-Nomayo, translated/compiled by: Hu Tao, authorized reproduction from Chain Catcher)

What are the differences between x2y2 and LooksRare?

According to the Litepaper released by the project in January, x2y2 differs from LooksRare in several aspects. On one hand, the airdrop applies to all 861,417 wallets that traded on OpenSea before January 2022. In the LooksRare airdrop, only wallets that traded at least 3 ETH (worth $9,000) on OpenSea between mid-June 2021 and mid-December 2021 are eligible for the airdrop.

Another distinction emphasized by the x2y2 team is the absence of a private sale for early supporters. Instead, x2y2 conducted an Initial Liquidity Offering (ILO) to raise funds needed to provide liquidity on Uniswap, encouraging a healthy market.

The project sold 15 million X2Y2 tokens to investors. These ILO tokens were divided into 1,000 shares, each valued at 1.5 ETH, raising 1,500 ETH ($4.5 million) from the token sale. This means that ILO investors purchased X2Y2 at a price of $0.25 per token.

X2y2 paired 1,500 ETH with 10 million X2Y2 tokens to create a liquidity pool on Uniswap.

Another difference from the LooksRare model is that traders on x2y2 will not receive rewards based on their trading volume. The primary rewards on the platform come from X2Y2 staking and NFT staking.

Additionally, stakers will earn a portion of the trading fees from the platform. The platform charges a 2% fee on all NFT transactions.

By limiting rewards to staking, x2y2 aims to eliminate the "mining trading" that can easily lead to wash trading, a common practice on LooksRare. Since LooksRare ties rewards to trading activity, traders are incentivized to manipulate the system by trading NFTs with themselves — which they often do.

6.5 billion tokens (65% of the total token supply of 10 billion tokens) have been designated for staking rewards, indicating x2y2's emphasis on staking.

"The fundamental difference of x2y2 relative to Opensea and LooksRare lies in the 'interest groups represented'; x2y2 is aimed at users and the general public, not capital and whales. This is verified through their rules on ILO/airdrops/staking, etc.," the x2y2 community stated.

Through these measures, the X2Y2 token price has continued to rise since its launch, with a current total market value of $46.8 billion, surpassing LooksRare and becoming the NFT trading platform with the highest total market value.