Magic Eden, a prominent non-fungible token marketplace, recently faced a setback with the launch of its airdropped coin. The newborn token, named Magic Eden (ME), experienced a sharp decline in value shortly after its debut on Tuesday, December 10.
The NFT marketplace, which was established in September 2021, allocated 12.5% of its total supply of 1 billion ME tokens to the airdrop. The token generation event garnered significant attention from major crypto exchanges, including Binance, Upbit, Bithumb, Coinbase, and OKX.
Despite the initial hype surrounding the launch, ME quickly reached an all-time high of $17 before plummeting to an all-time low of $4.42 within hours. Currently, the token is trading at $5.71, representing a 67% decrease from its peak value.
The market cap of ME currently stands at $745 million, with a substantial daily trading volume of $4.68 billion. This high trading volume indicates a growing demand for the asset, despite the sharp decline in price.
However, the token distribution process for ME has not been completed yet, leading to uncertainty and potential further selloffs. Some users have also reported difficulties in claiming their free Magic Eden tokens, citing technical issues with the Magic Eden wallet.
Overall, the launch of Magic Eden’s airdropped token has been met with mixed reactions from the crypto community. While the token initially garnered significant interest and exchange listings, technical issues and a rapid decline in value have raised concerns among investors.
As the situation continues to unfold, it remains to be seen how Magic Eden will address these challenges and regain the trust of its users. The volatile nature of the crypto market underscores the importance of thorough research and due diligence when participating in token airdrops and investments.