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Magic Eden’s Airdropped Coin Sees Steep Decline After Launch
Magic Eden, a leading non-fungible token (NFT) marketplace, launched its native token, Magic Eden (ME), through an airdrop event on December 10. Despite the initial hype, the token’s value plummeted shortly after its launch.
Airdrop Details
Magic Eden allocated 12.5% of its 1 billion ME total supply to the airdrop, which translates to 125 million ME tokens. The token generation event caught the attention of prominent crypto exchanges, including Binance, Upbit, Bithumb, and Coinbase, which listed the token hours before its launch.
The airdrop’s value reached a staggering $2.12 billion at its peak, making it the third-largest free token distribution event, behind Uniswap’s $6.4 billion and ApeCoin’s $3.5 billion airdrops.
Market Performance
ME reached an all-time high of $17 shortly after its launch but quickly declined to an all-time low of $4.42, a 67% drop from its peak. The token is currently trading at $5.71. Despite the decline, ME’s market cap is hovering at $745 million, with a significant daily trading volume of $4.68 billion, indicating increasing demand for the asset.
Technical Issues and User Complaints
Some users reported difficulties in claiming the free Magic Eden tokens due to the complexity of the process. Others complained about technical issues with the Magic Eden wallet, used to collect the tokens.
Instructions should have been easier / shouldn’t have been forced to watch a video that didn’t even explain the proper steps to claim.
These issues may have contributed to the token’s decline in value. Another phase of selloff is expected as the token distribution hasn’t been completed yet.
Tips for Airdrop Participants
When participating in airdrops, it’s essential to:
- Understand the token’s distribution process and requirements.
- Be prepared for potential technical issues and delays.
- Stay informed about market developments and exchange listings.
- Exercise caution when buying or selling tokens, especially during periods of high volatility.
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