The long-awaited airdrop of the ME token from the Magic Eden NFT marketplace made waves in the cryptocurrency community on December 10, 2024. But it was not positive.
Valued at over $700 million, the event attracted a significant number of participants eager to claim a share of the ME tokens. However, the complicated claiming process and technical glitches left many users frustrated. Worse still, they missed out on the chance to capitalize on the tokens’ peak prices. Complaints were widespread across the market.
Complicated claims and missed opportunities
Prior to the airdrop, market speculation was rampant, with analysts predicting an initial price for the ME token of $4.50. This translated into a distribution value of $562 million. Interestingly, on Whales Market, pre-launch trading saw the token’s price rise from $6.40 to $7.00. Meanwhile, BeInCrypto reported that the ME token was trading between $3 and $4 in pre-market trading in the days leading up to the airdrop.
The ME token is currently trading in premarkets at $3-4 per ME. Premarkets should always be treated with caution, but they give an early indication of where the value may be headed, said researcher Azuki wale.moca.
At launch, however, Magic Eden’s ME exceeded expectations with an opening peak of $17 recorded on CoinGecko. Within minutes, ME’s market cap soared to $1.6 billion, but fell below $1 billion in just 20 minutes, settling at $700 million by the end of the day.
This rapid price swing occurred due to a wave of selling pressure from users claiming their ME tokens. Some were able to profit significantly, with one trader earning $586,800 through three quick sell orders, according to DEX Screener. Others, however, were unable to capitalize due to the difficult claiming process and system errors.
My app is stuck, I can't claim…. shared by a user on X shared.
Magic Eden ME airdrop error message. Source: ME Claims Page
To claim ME tokens, users had to download the Magic Eden Wallet app, scan a QR code, connect to a computer, and maintain a minimum wallet balance of $10. Many encountered the dreaded “something went wrong” error or received claim confirmations without the tokens actually being credited. This delay proved costly as the price of ME quickly dropped, leaving some unable to sell at the peak prices of between $15 and $20.
I did everything as documented. My eligible wallet is MetaMask, which cannot hold SOL. I sent SOL to cover fees for my new ME wallet – but I can’t claim it because it says I don’t have SOL in my MetaMask wallet. Is there support? I can’t be the only one. What do I do?, lamented one user.
It's telling me to update IOS but I have the latest version, said wale.moca, adding to the list of complaints many have shared.
…I got this error with $11 billion market cap… Now I am getting the message that something went wrong. I think it is referring to the chart, shared another user.
69 million ME tokens claimed in the first hour
According to the ME Foundation, however, over 70,000 users successfully claimed 69 million ME tokens within the first hour. Despite the aforementioned challenges, some have come up with innovative strategies. One trader, known as @nfttim on X, used Magic Eden’s Dynamic Liquidity Market Making (DLMM) fee mechanism to earn $4,400 in fees within five hours.
While everyone around me was panicking to dump as soon as possible, I was convinced that I could earn at least 50% of my drop in fees without selling a dime in 24 hours. My drop is still worth $17k. Think smart, not fast, he said.
The event reflects the massive interest in ME, making it one of the most significant airdrops of 2024. Jack Lu, co-founder and CEO of Magic Eden, addressed the turnout and acknowledged the overwhelming traffic.
If you are a long-term companion, we invite you to join the ME community. Otherwise, thank you for using Magic Eden, said Jack Lu
Meanwhile, Magic Eden’s airdrop comes on the heels of Hyperliquid’s HYPE token distribution, which set new DeFi standards with its smooth claiming process and remarkable allocation. However, HYPE’s post-airdrop performance serves as a cautionary tale. After an initial surge, the token’s price has since dropped significantly, reflecting the fleeting nature of airdrop hype.
Magic Eden could face a similar path if it fails to build sustained utility and trust for the ME token. While the airdrop demonstrated the platform’s popularity, the technical issues and missed opportunities could drive away future participants.
The article Magic Eden Airdrop Fails and Users Lose Capitalization was first seen on BeInCrypto Brazil.
