Magic Eden’s native ME token experienced a volatile debut facing a pump and dump from the highs of $13.10 to the lows of $4.30.
As soon as the popular non-fungible tokens (NFT) platform Magic Eden airdropped its native ME token, its value plummeted by a staggering 53% amid a buggy mobile app that complicated the process of claiming tokens.
On Tuesday, December 10, the Magic Eden (ME) token debuted at $6.30 levels and shot up to $13.10 in a brief period. However, its value plummeted by a massive 67% hours later hitting a low of $4.30. Although the ME token price made a brief surge above $8.0 later on, the selling pressure mounted again pushing the token value close to $5.3.
The airdrop faced criticism from users, who called the token claim process overly complicated and reported issues with Magic Eden’s mobile app, describing it as glitchy and difficult to navigate. Users on the X platform made severe criticism for the ineffective handling of token distribution by Magic Eden. “My app is stuck, can’t claim, people dumping ME like hot cakes. Awesome,” one user wrote.
Furthermore, there was confusion among users who said that while the “claim now” feature was available on the mobile app, the same feature was missing on the desktop. To claim ME tokens, users had to download Magic Eden’s mobile app. Besides, they could also scan a QR code displayed on a desktop device, link their eligible wallets, and then complete the process to receive their allocated airdrop. However, one user wrote:
“Can you only claim on mobile? Or can I claim on desktop? Mobile shows unclickable ‘claim now’ and desktop only shows ‘stake now’”.
The launch of Magic Eden’s ME token airdrop faced significant criticism as users reported intermittent downtime on the claims website. As the claimants surged to secure their ME tokens, it caused a surge in traffic on the website thereby sparking widespread frustration.
However, three-four hours after the claims process went live, Magic Eden addressed the problem while notifying users that they had resolved the technical issue.
The ME token, issued by the Magic Eden Foundation, has a total supply of 1 billion tokens. Of this, 12.5% — equivalent to 125 million tokens — has been allocated for the ongoing airdrop, available to NFT platform users until February 1 next year.
Additionally, the NFT platform has reserved 50% of the token supply for community incentives while the remaining 37.5% went to strategic participants and contributors. As of publication, the ME token holds a market capitalization of $685 million, with a fully diluted valuation (FDV) of $4.95 billion.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
