As the Crypto Winter NFT sales drop to the lowest since January 2021, marketplaces are now employing desperate tactics to gain a foothold in the industry. Is it possible that they will forfeit their own profits in order to catch up?
Looks Rare, a hip young NFT marketplace, has made its own unique interpretation of creator royalties. In order to make up for the royalties it is forfeiting, the marketplace has created its own platform fees.
The battle between NFT aggregator sites has begun, with many marketplaces cutting down creator profits in order to give a better price point. However, drawing much criticism as artists lose a crucial part of their earnings without losing anything to the marketplace.
LooksRare has now eliminated the creator reward from the standard bidding strategy. Instead, half of the 2% platform fees are distributed to creators and collection owners, while buyers may voluntarily pay a royalty if they feel guilty.
Marketplaces are now employing desperate strategies to get a foothold in the crypto industry as crypto winter sees NFT sales drop to the lowest point since January 2021. However, will they forgo their own profits in order to get ahead?