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Magic Eden launched its official ME token, and it’s listed on major centralized exchanges, including Binance, OKX, Upbit, and Bithumb. The token’s price dropped nearly 60% after the launch
Magic Eden officially launched its ME token on 10 December, marking a significant milestone for the Solana-based NFT marketplace. The token distribution followed a Token Generation Event (TGE), allocating ME tokens to eligible users who met specific activity criteria.
Major cryptocurrency exchanges, including Binance, Upbit, and Bithumb, confirmed support for the new token. The ME token became available for trading on December 10, with Binance opening trading and withdrawals at 15:00 UTC. The exchange will offer ME trading in pairs with BTC, USDT, FDUSD, and TRY. Users can deposit ME tokens ahead of the launch.
Magic Eden’s ME token declines 40% post-launch
Following the launch today at 2:00 PM UTC, ME started trading at $17 and sharply fell nearly 40% within the first few minutes of trading. This is likely due to airdropped users liquidating their tokens on the listed centralized exchanges.
Binance highlighted the potential risks associated with the new token. To address this, the exchange will apply a “seed tag” to ME. This designation requires users to pass a platform quiz and agree to Binance’s terms every 90 days to access ME trading.
South Korean exchanges Upbit and Bithumb also announced plans to list ME, with trading set to begin simultaneously at 14:00 UTC on December 10.
Launched in September 2021, Magic Eden operates as a multi-chain NFT marketplace primarily built on the Solana blockchain. The platform once accounted for 31.7% of daily NFT sales volume on Solana but experienced a drop to 3.4% in 2023 due to a decline in Solana NFTs.
The ME token will serve governance, staking, and reward functions within the Magic Eden ecosystem. Users can check their eligibility and claim ME tokens via Emmy, the platform’s wallet, available on the Magic Eden mobile app. The launch announcement was shared through Magic Eden’s official X account.
Is Magic Eden’s ME token a good investment?
NFT-based tokens are generally risky because they largely depend on speculative trading, as the general utility and transaction of NFTs have declined significantly. Yet, ME does have some notable utility.
The ME token is designed to serve multiple functions within the Magic Eden ecosystem, including governance, staking, and user rewards. Its total supply is capped at one billion tokens, with distribution planned over four years, allocating more than half to the community.
However, it’s challenging to provide a practical price prediction for the token. As it was launched today, it’s expected that the ME token will go through a liquidation cycle from airdrop receivers and subsequently experience a bullish cycle throughout accumulation. Price prediction can only be generated once a notable cool-off period arrives.
So, traders must be cautious. Investing in new tokens like ME carries inherent risks, including price fluctuations and regulatory uncertainties. Potential investors should conduct thorough research and consider their risk tolerance before investing in ME or any cryptocurrency.
