The NFT trading market x2y2 launches a vampire attack on OpenSea
x2y2 has been launched as a competitor to OpenSea and LooksRare, emphasizing high staking rewards.Original Author: Osato Avan-Nomayo
Compiled/Organized by: Hu Tao, Chain Catcher
The NFT trading market x2y2 has launched a vampire attack on the market leader OpenSea, airdropping millions of tokens to its user base. It follows in the footsteps of LooksRare, which also launched a similar product last month but with a different strategy, hoping to avoid ongoing wash trading.
A vampire attack refers to a project distributing tokens to users of existing blockchain projects. The goal is to incentivize the target audience of similar projects to try the new project and choose to use it, especially if it continues to distribute rewards.
x2y2's vision is to build a truly decentralized NFT marketplace owned by the NFT community, providing users with a better product experience and returning value to the community.
To initiate the vampire attack, x2y2 is airdropping tokens to OpenSea users. The project has distributed 120 million tokens, accounting for 12% of the total supply of X2Y2 (the project's native token).
However, the airdrop has encountered some obstacles. On Wednesday, x2y2 paused the airdrop due to complaints from users facing difficulties in claiming tokens. The team has promised to resume the airdrop within the next 48 hours. Before the process was halted, only 7% of the 120 million airdropped tokens had been claimed.
Some potential issues in the airdrop claim contract have also raised alarms. Some observers noted that the authorization of the airdrop contract could make NFTs in users' wallets vulnerable to theft.
In response, the x2y2 team provided evidence that it has addressed the issue by revoking the contract's ability to deplete users' wallets. According to the Etherscan link provided by the team, it has also transferred ownership of the contract to a multi-signature wallet stored in Gnosis Safe to reduce further risks.
The project community has reflected that the team's development capabilities and responsiveness to encountered issues are very strong, allowing for timely responses to community suggestions and needs.
What are the differences between x2y2 and LooksRare?
According to the Litepaper released by the project in January, x2y2 differs from LooksRare in many ways. On one hand, the airdrop is applicable to all 861,417 wallets that traded on OpenSea before January 2022. In the LooksRare airdrop, only wallets that traded at least 3 ETH (9,000 USD) on OpenSea between mid-June and mid-December 2021 were eligible for the airdrop.
Another difference emphasized by the x2y2 team is the absence of private placements for early supporters. Instead, x2y2 conducted an Initial Liquidity Offering (ILO) to raise funds needed to provide liquidity on Uniswap (which encourages 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 USD) from the token sale. This means 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 for the token on Uniswap.
Another difference from the LooksRare model is that traders on x2y2 will not receive rewards related to their trading volume. The main 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 market charges a 2% fee on all NFT transactions.
By limiting rewards to staking, x2y2 indicates that it aims to eliminate "trade mining," which easily leads to wash trading, a common occurrence on LooksRare. Since LooksRare ties rewards to trading activity, traders are incentivized to buy and sell NFTs to manipulate the system—exactly what they have been doing.
A total of 650 million tokens (65% of the total supply of 1 billion tokens) has been designated for staking rewards, further indicating X2Y2's emphasis on staking.
"The fundamental difference of x2y2 compared to Opensea and LooksRare lies in the 'interest groups it represents'; x2y2 is aimed at users and the general public, rather than capital and whales. This is validated by its rules regarding ILO/airdrop/staking, etc." the x2y2 community stated.
Through these initiatives, the price of the X2Y2 token has continued to rise since its launch, with a current market capitalization of $4.68 billion, surpassing LooksRare and becoming the NFT trading platform with the highest total market capitalization of tokens.
Related Articles:
《X2Y2: Reshaping Community Token Economics to Build an Inclusive NFT Trading Market》
