New NFT Marketplace X2Y2 Tries to Take On OpenSea with Vampire Attack

New NFT marketplace entrant X2Y2 launches a vampire attack on OpenSea like its predecessor, LooksRare, did.
Image source: X2Y2

Last Updated on June 6, 2022

Quick take:

  • X2Y2 has airdropped millions of tokens to all wallets that have traded on Opensea before Jan 2022.
  • Unlike LooksRare, users on X2Y2 won’t receive trading rewards.
  • Platform rewards will come from staking the native X2Y2 token.

Launched this week, new NFT marketplace X2Y2 has started its vampire attack on market leader OpenSea as it airdrops 120 million X2Y2 token to OpenSea users. 

A Web 3 phenomena, a vampire attack is when a platform uses tokens to poach the user base of another platform. The goal is to suck the trading volume of its competitor as the “attacker” continues to reward new users on a regular basis.

X2Y2’s airdrop began yesterday and hit a snag as users experienced difficulties claiming the token. Twitter user “YannickCrypto” also warned users that claiming the airdrop could drain wallets even without active listings. In response, X2Y2 by transferred ownership of the contract to a multisig wallet stored on Gnosis Safe.

While the airdrop is paused, the platform also noticed that low-quality NFTs were being listed by users eager to claim the airdrop. To tackle low-quality listings, X2Y2 said that its NFT listing rewards are distributed in a way that rewards high-quality NFTs that could be sold easier.

The airdrop will be resumed within 24 hours. All 861,417 wallets that have traded on OpenSea before Jan 2022 are eligible for the airdrop. Prior to the pause of the airdrop, only 7% of the 120 million tokens have been claimed. 

In its litepaper published in January, X2Y2 highlighted some main differences it has from LooksRare. It pointed out that instead of empowering all OpenSea users, “LooksRare had chosen 20% of OpenSea’s nearly 900,000 trading users with more than 3 ETH transactions as the target of its airdrop”.

It also cited lack of transparency and wash trading as major issues of LooksRare. What X2Y2 aims to do differently is to have an inclusive airdrop with no expiration date. Instead of a private sale, there was an Initial Liquidity Offering of the X2Y2 token to 1000 whitelisted users on the platform’s Discord. 

The platform sold 15 million X2Y2 tokens divided into 1000 shares, priced at 1.5 ETH each, raising 1500 ETH from the sale. All ETH collected from the sale have been put into Uniswap to provide initial liquidity while unsold X2Y2 tokens will be burned directly after the sale. Liquidity Provider (LP) tokens will also be burned to lock the liquidity permanently.

To prevent wash trading, X2Y2 will not offer trading rewards. It will only offer staking rewards. Stakers will receive the daily X2Y2 reward and all the previous day’s handling fees of 2%. X2Y2 stated that this mechanism will provide stakers with prolonged and higher returns.

The platform has set aside 650 million X2Y2 tokens (65% of the total supply) for staking rewards. Whether X2Y2 will prove a worthy competitor to OpenSea and even LooksRare remains to be seen.

Stay up to date:

Previous Post

NYSE’s Trademark Application For an NFT Marketplace is a Huge Boost for the Industry

Next Post

L’Oreal Sets Sights on the Metaverse with New Trademark Filings for NFTs and Virtual Products

Related Posts