Often regarded as a close competitor to OpenSea, the team behind the project has recently taken out a large sum of native tokens and cashing them out.
The withdrawal was initially noticed on January 24th, with reports that the LooksRare dev team took out more than $25 million worth of WETH. A few weeks later, the same user updated his initial statement, claiming that the team took out almost $73 million in WETH.
According to him, the majority of the native tokens went to Tornado Cash which is notorious for being the prime protocol used by hackers to increase transaction anonymity by "breaking the on-chain link between the source and destination addresses."
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LOOKS were awarded to users who sold their NFTs on the marketplace. On this occasion, they were transferred to the Tornado Cash mixer and taken out as Ether.
Even though the community went nuclear on the team behind the project, Zodd, who is part of LooksRare, explained that the withdrawn amount was incorrect and that it was actually closer to $30M. Likewise, he mentioned that his team had not been paid for over half a year, and assured that the project was not a scam.
Be that as it may, the LooksRare community did not feel satisfied with the explanation, especially when the cash-out made the LOOKS token briefly crash by almost 15%. However, it managed to climb back up quite quickly.
