Magic Eden’s highly anticipated token launch faced significant hurdles as users reported app glitches and a challenging claiming process.
The value of the platform’s native token, $ME, dropped sharply by approximately 67% just hours after its launch on December 10, leaving many participants frustrated with the experience.
The $ME token, which debuted at an initial price of $6.70, briefly surged to $13.10 before crashing to $4.30. It has since recovered slightly, trading at $5.60, but remains more than 50% below its early peak. Issues with the platform’s mobile app and complaints about a convoluted airdrop procedure contributed to user dissatisfaction, overshadowing the event meant to be a milestone for the NFT platform.
Source: DexScreener
Users frustrated with the airdrop process
To claim the airdropped tokens, users were required to download Magic Eden’s mobile app, scan a QR code from their desktop, connect their wallets, and complete the claim process. Many took to social media to express their frustrations, citing problems with the app’s functionality and the overly complicated steps involved.
The Magic Eden $ME token has lost over $9 billion in market cap in about 90 minutes, a decline of nearly 69%.What went wrong? https://t.co/STbf0r2a7K pic.twitter.com/rTVEsQbFS5
— Franklin (@franklinisbored) December 10, 2024
Reports of bugs in the app further fueled complaints. Some users said they could not complete the claim process, while others reported losing funds. “My app is stuck, can’t claim, people dumping ME like hot cakes. Awesome,” one user wrote.
The chaotic rollout led to a sharp decline in the token’s fully diluted valuation, which initially peaked at $15 billion before stabilizing at around $5 billion. While some users could claim and sell their tokens for quick gains, others expressed disappointment over the platform’s lack of user-friendliness.
Today’s the day you’ve been waiting for. $ME is here.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
— Magic Eden (@MagicEden) December 10, 2024
Security concerns spark criticism
The token launch also attracted scrutiny from industry experts due to potential security risks. Wallet security researchers noted that the Magic Eden mobile app appeared to store users’ recovery phrases and private keys without offering clear deletion options.
Experts warned that storing sensitive wallet information in any digital format poses significant risks. One security specialist, Ogle, highlighted the issue, calling it “a very bad idea” and suggesting that the platform’s handling of wallet security deviated from best practices.
These concerns added to the backlash, with some users accusing Magic Eden of prioritizing the token launch over ensuring a seamless and secure user experience.
About the $ME token
The $ME token was launched on December 10 as the official cryptocurrency of the Magic Eden ecosystem. It enhances engagement across the platform, which operates on Solana, Bitcoin, and Ethereum Virtual Machine (EVM) chains.
The total supply of $ME is capped at 1 billion tokens, with 12.5% allocated for the airdrop. This distribution will remain available to users until February 1, 2024. Half the supply is reserved for community incentives, while 37.5% is set aside for contributors and strategic participants.
Magic Eden envisions $ME as a cornerstone of its strategy to power on-chain economies. It aims to provide tools for cross-chain trading, minting, and wallet protocols while rewarding users for activity across supported blockchains. However, the launch’s rough start has raised questions about the platform’s ability to deliver on its ambitious goals.
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