- The FDV of the Magic Eden crypto, ME, spiked to $15 billion but has dropped to around $5 billion.
- ME’s market cap has declined by over 50% in the last 24 hours.
As a seasoned analyst with over two decades of experience in the ever-evolving world of cryptocurrencies, I’ve seen my fair share of meteoric rises and sudden falls. The Magic Eden crypto (ME) is no exception to this rule.
Over the last two days, Magic Eden’s crypto platform has garnered significant interest due to recent updates from prominent cryptocurrency exchanges regarding the listing of their airdropped native token, known as ME.
The publicity from the listing has led to greater awareness about the token, but it’s sparked a range of opinions and safety worries among cryptocurrency enthusiasts.
Magic Eden crypto ME token goes live
On December 10th, it was announced that Binance, a prominent global cryptocurrency exchange, will make available the trading and withdrawal of tokens issued by Magic Eden, known as the ME token.
To address the risks associated with the token’s new status, Binance has added a “seed tag” to ME.
Users must take a platform test every 90 days, confirming they understand and agree with the exchange’s conditions of use, in order to keep trading the token.
Besides Binance, South Korean exchanges Upbit and Bithumb also listed ME on December 10th. These exchanges then linked the token to the Korean Won, Bitcoin, and Tether, increasing its reach within various markets.
In the past 24 hours, the excitement about ME’s listings has catapulted it to the leading position on Santiment’s list of trending assets.
Most of the responses towards the asset have been favorable, making up more than half (55%) of the overall sentiment analysis we’ve conducted so far.
AirDrop process sparks security concerns
Critics within the cryptocurrency sphere have voiced concerns over Magic Eden’s methodology regarding the distribution of its ME token through an Airdrop. This initiative was intended to recognize and compensate NFT traders for their previous trading actions.
Users had two options: Import the private keys from their eligible wallets into Magic Eden’s wallet application, or establish a fresh wallet within the platform, then connect it with their existing wallets, in order to receive the AirDrop.
While this process excited some traders, it raised significant security concerns among others.
Critics contend that making users import their own private keys could lead to increased security vulnerabilities, emphasizing the importance of devising more secure and transparent techniques for AirDrop.
Market performance post-listing
During its initial public offering, Magic Eden’s ME token experienced a fluctuating start. On December 10th, trades commenced at around $10, and the price climbed to $12 within its inaugural trading day, which in turn elevated its fully diluted market capitalization (FDMC) to a staggering $15 billion.
Initially, the token’s speed was moving upwards, but it soon changed direction. Currently, ME is priced approximately at $5.08, which represents a substantial drop compared to its earlier peak prices.
As a result, its Free-Floating Valuation (FFV) has decreased to around $5.06 billion. Moreover, due to a drop of more than 55%, its market capitalization currently stands at $663 million, as per data from CoinMarketCap, over the past 24 hours.
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2024-12-11 18:15