The highly anticipated $ME token airdrop from Magic Eden NFT marketplace made waves in the cryptocurrency community on December 10, 2024.
Valued at over $700 million, the event drew tens of thousands of participants eager to claim their share of the ME tokens. However, a convoluted claim process and technical glitches left many users frustrated and cost a significant number of them the chance to capitalize on peak token prices.
Complicated Claims and Missed Opportunities
Before the airdrop, market speculation was rampant, with analysts predicting an initial ME token price of $4.50. This translated to a distribution value of $562 million. On Whales Market, interestingly, pre-launch trading saw the token’s price climb from $6.40 to $7.00. Meanwhile, BeInCrypto reported that the ME token was trading at between $3 and $4 pre-market in the days leading up to the airdrop.
At launch, however, Magic Eden’s ME exceeded expectations with an opening high of $17 recorded on CoinGecko. Within minutes, ME’s capitalization soared to $1.6 billion but plummeted below $1 billion in just 20 minutes, stabilizing at $700 million by the end of the day.
This rapid price action came on the back of a wave of selling pressure from users claiming their ME tokens. Some managed to cash out significant profits, with one trader making $586,800 through three swift sell orders, according to DEX Screener. Others, however, were unable to capitalize due to the challenging claim process and system errors.
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 actual tokens being credited. This delay proved costly as ME’s price dropped rapidly, leaving some unable to sell at peak values between $15 and $20.
69 Million ME Tokens Claimed In 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 users devised novel 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.
Meanwhile, Magic Eden’s airdrop came on the heels of Hyperliquid’s HYPE token distribution, which set new DeFi standards with its seamless claim process and striking allocation. However, HYPE’s post-airdrop performance serves as a cautionary tale. After an initial surge, the token’s price dropped significantly, mirroring the fleeting nature of airdrop hype.
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