New Ethereum-based NFT marketplace X2Y2 has begun a vampire attack on OpenSea, similar to what LooksRare did soon after its launch in January. X2Y2 has airdropped 120 million X2Y2 tokens to people who used OpenSea before January 2022.
A Vampire Attack is a Web3 and crypto phenomenon where new platforms steal the liquidity and trading volume of an existing platform by offering better incentives and interest rates to users.
We're live! ⭕️ 🥳 💖
Claim your free $X2Y2 on 👇https://t.co/vz8IxrOQDU
— X2Y2 ⭕️ | NFT Marketplace (@the_x2y2) February 15, 2022
While the distribution of tokens was free, users were still required to pay gas fees to collect the coins. The move was akin to that of LooksRare, which airdropped its LOOKS token to OpenSea users who have traded 3 ETH or more before December 16, 2021.
However, unlike LooksRare, X2Y2 doesn’t plan on offering trading rewards to users in a bid to combat wash trading. X2Y2 users can only earn rewards by staking their tokens and earning part of the trading fees that come from NFT transactions.
LooksRare saw many NFT wash traders exploiting its trading rewards program by repeatedly purchasing and selling NFTs to manipulate its trading volume. In a January report, NFT analytics firm CryptoSlam identified more than $8.3 billion worth of wash trading from the platform.
X2Y2 is an Ethereum-based NFT platform that aims to become a truly decentralized and community-led marketplace for users. The platform will eventually form a Decentralized Autonomous Organization to further its efforts.
The platform has airdropped 120 million tokens, 12% of the total supply of X2Y2. Moreover, it has reserved 65% of the total supply, i.e. 650 million tokens for staking rewards.