The NFT world is buzzing after industry leader OpenSea was faced with another “vampire attack” which led to it briefly losing its spot as the most-used NFT marketplace.
What happened: LooksRare, the new kid on the blockchain, briefly took the number one NFP marketplace spot from OpenSea, generating US$1.8 billion of trading volume, almost double the volume of OpenSea’s US$965 million.
- LooksRare lured OpenSea users with offers of free tokens called $LOOKS, which ranged in value from $325 to $26,000, for simply logging on to the new site.
- It targeted the most active users, offering the token to those who traded at least 3 ETH on OpenSea.
- Users felt a sense of urgency and flocked to claim the free tokens before the offer expired.
This marketing tactic is called a “vampire attack” and they sound bloodier than they are:
- In layman’s terms, a vampire attack is simply leeching users from one platform using incentives (like a free token) to migrate their activity to a new platform.
- The token issued increases in value with more transactions on the application, incentivizing token holders to choose the new platform over competitors.
Why it matters: Vampire attacks are a marketing tactic unique to the web3 world. Traditionally acquiring early users can be a slog for startups, but companies like Looks Rare have proven that ‘vampire attacks’ can be a quick way to fast-track that process.
- And the good news? That means free tokens for us. As of Monday, the $LOOKS token was trading at $4.42. Some users reported making thousands of dollars worth of $LOOKS by simply using OpenSea.
Whether vampire attacks are a viable long-term marketing strategy remains to be seen, however. As of now, LooksRare’s trading volume has once again fallen below OpenSea’s.