The new kid on the block, LuxRay has had more trading volume than OpenC since its launch. But is there more to it than meets the eye?
According to CryptoSlam, today trading volume of LuxRay has exceeded $8B in wash trade. On a new NFT marketplace, Lucair, 2866500 LUX tokens are offered to traders who trade certain NFT collections daily. Traders are allocated LUX tokens based on the volume of trades done on a particular day. LuxRay has delivered $20 million or more in daily Lux Rewards since the company’s inception on January 10, 2022. After 30 days, the daily rewards halved, so it remains to be seen whether the high trading volume continues after that. Following the launch, LuxRay users were selling Meebits and Loot for $50M worth of ETH. A week ago on OpenSea Meebits NFT was priced at 4.1 ETH on OpenSea.
How is Wash increasing trading volume?
Merchants can send NFTs between their own ETH wallets and artificially inflate NFT prices. The higher the sales volume, the higher the reward of LOOKS tokens. According to Dune Analytics, LuxRay has seen $9.5B in Ethereum trading volume. By cross-referencing data from Dune Analytics and CryptoSlam, 87% of LuxRay’s trading volume to date was generated through wash trading.
Most of WASH trading comes from NFTs which do not attract royalty fees when sold on OpenC or any other secondary market. Meebits generated $4.4B in Wash trades, Terraforms $2.9B, Loot $7.05M and CryptoPunks $251M.
CryptoSlam uses a number of methods to filter Wash trading data from its metrics. First, he wrote an algorithm to trace wash sale transactions. They have removed wash sale transactions from their metric “Ranking NFT Collections by Sales Volume”. They’ve also added a UI feature to indicate wash sales for most collections.
Lux holders can earn staking rewards
Users who earn LUX tokens can stake them to earn rewards in ETH wrapped with an annual percentage rate of 480.77%. On January 28, 2022, Feeling Rare distributed WETH 261 ($10.2M). WETH rewards can be used to offset the 2% flat market transaction fee for trades. On January 28, 2022, LuxRay expanded its trading rewards to include any listed NFTs, not just special collections such as MeBits.
Terraforms currently sits at the top of the stack on LuxRay with a 24-hour trading volume of 127105.92 ETH, followed by MeBits with 101315.3 ETH. OpenSea still leads in regards to total transactions and total users since LuxRay was launched.
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