Magic Eden’s much-anticipated token launch was met with significant challenges. Users reported a series of issues, including a buggy mobile app and a convoluted claiming process. Its token, Magic Eden (ME), dropped in value by about 67% merely hours after launch.
The newly launched token experienced a sharp decline in the early hours of December 11, as users of the non-fungible token (NFT) platform Magic Eden voiced frustrations over technical glitches in the mobile app and a widely frustrating claiming process.
According to market tracker DexScreener data, ME, launched on December 10 at an initial price of $6.70, briefly rallied to $13.10 before plummeting by 67% to a low of $4.30. The token is currently trading at $5.6, still down by more than 50% from recent highs after its debut.
The token launch, promoted as a major milestone for the NFT platform, was overshadowed by user frustration. Many participants took to social media to complain about the difficulties in claiming their allocated airdrops.
ME token struggles amid issues on airdrop token allocation
To receive tokens from the airdrop, users were prompted to download Magic Eden’s mobile app, scan a QR code on a desktop device, link their wallets, and then claim the tokens.
According to several crypto enthusiasts on X, the procedure is seen as overly complicated and the mobile app was glitchy and difficult to navigate. “My app is stuck, can’t claim, people dumping ME like hot cakes. Awesome,” one user complained.
The initial trading activity for the $ME token saw its fully diluted valuation (FDV) reach $15 billion in the early minutes of trading. However, as more users successfully processed their airdrops and some chose to sell, the FDV sharply declined, eventually stabilizing at around $5 billion.
The Magic Eden $ME token has lost over $9 billion in market cap in about 90 minutes, a decline of nearly 69%.
— Franklin (@franklinisbored) December 10, 2024
What went wrong? https://t.co/STbf0r2a7K pic.twitter.com/rTVEsQbFS5
Some users reported losing funds during the claiming process, alleging that their wallets were drained as they navigated the platform’s convoluted steps. Meanwhile, others who managed to claim and sell their tokens celebrated their gains, dismissing criticism as complaints from those who missed out on the opportunity.
Industry insiders criticized the airdrop process, suggesting that it deviated from security best practices. Moreover, wallet security experts at Coindesk found that Magic Eden wallets retain users’ recovery phrases and private keys within the app without providing a clear option to delete this sensitive information.
“It’s a very bad idea to store this stuff” anywhere digitally, be it locally on one’s own device or – even worse – remotely on a company’s servers,” one crypto-security sleuth going by the pseudonym Ogle remarked.
Magic Eden token: What is it?
The ME Foundation, which backs the Magic Eden platform, announced that the $ME token went live at 9 a.m. ET on December 10. As the official token for the Magic Eden ecosystem, $ME aims to enhance user engagement across Solana, Bitcoin, and Ethereum Virtual Machine (EVM) chains. The token is designed to reward users and drive participation in the expanding Magic Eden ecosystem.
“We’re incredibly excited for today’s launch and the opportunity to foster a passionate, cross-chain community of users,” said Matt Szenics, Director of the ME Foundation.
Today’s the day you’ve been waiting for. $ME is here.
— Magic Eden 🪄 (@MagicEden) December 10, 2024
Don’t guess — Watch this video below and learn how to claim in mere minutes.
You have until February 1st 2025 to claim, any unclaimed tokens will be distributed to stakers.
More info on this later. pic.twitter.com/NWFmnCaSEv
“The $ME token represents the power of on-chain trading applications, and there will be innovative incentives rewarding users for trading all assets on all chains. $ME is becoming a token for on-chain maxis everywhere,” he continued.
The token’s total supply is capped at 1 billion, with 12.5% allocated to the airdrop. This initial distribution of 125 million tokens will remain available to users until February 1, 2024. Additionally, 50% of the total supply has been reserved for community incentives, while the remaining 37.5% is allocated to contributors and strategic participants.
Magic Eden has positioned $ME as a key component of its strategy to power the on-chain economy, offering tools for cross-chain trading, minting, and wallet protocols. The platform claims that $ME will represent the largest community of users, who can earn rewards for trading assets across all supported chains.
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