The team behind non-fungible token (NFT) marketplace LooksRare, cashed out 10,500 wrapped Ether (WETH) or about $30 million. The sum was from the unattributed staked native token LOOKS used to pay fees on the LooksRare platform and was also awarded to users who sold their NFTs on the platform. The LooksRare team cashed out the unattributed LOOKS tokens for Ether on Tornado Cash, a popular crypto mixing tool.
After the news became public, the LooksRare team came under heavy backlash from the Twitter community. In addition, the price of the native token LOOKS also dropped by about 15% following the development. Despite the criticism levied, a LooksRare team member defended the withdrawal on Twitter, claiming that the team earning rewards in wrapped Ethereum was never a secret. In addition, Zodd, one of the core members, also stated that the LooksRare team worked on the platform for over six months. Zodd further added that this took place without any monetary compensation, and that the team also fronted the high cost prior to launch.
Zodd also corrected the notion that the LooksRare team cashed out $73 million in WETH, instead putting the actual figure at $30 million. However, the LooksRare community did not seem more impressed by this clarification. Instead, the community suggested that the team repurchase the native token instead of cashing out in Ether.
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