Posted: December 11, 2024

• 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.

Magic Eden crypto has been the center of attention over the past 48 hours. This is following announcements from major exchanges about listing its AirDropped native token, ME.

While the listing has brought increased visibility to the token, it has also raised mixed sentiment and security concerns within the crypto community.

Magic Eden crypto ME token goes live

Binance, one of the world’s largest crypto exchanges, announced the listing of Magic Eden’s ME token, enabling trading and withdrawals from the 10th of December.

To address the risks associated with the token’s new status, Binance has added a “seed tag” to ME.

This requires users to complete a platform quiz and accept the exchange’s terms of use every 90 days to continue trading the token.

In addition to Binance, South Korean exchanges Upbit and Bithumb also listed ME on the 10th of December. Both exchanges paired the token with the Korean Won, Bitcoin, and Tether, further boosting its market accessibility.

The buzz around ME’s listings has propelled it to the top of Santiment’s trending assets list within the last 24 hours.

While the asset has received a mix of reactions, positive sentiment currently dominates, accounting for over 55% of the sentiment data analyzed.

AirDrop process sparks security concerns

Magic Eden’s approach to its ME token AirDrop has drawn criticism from parts of the crypto community. The AirDrop was designed to reward NFT traders for their past activity.

Users were required to either import the private keys of their qualifying wallets into Magic Eden’s wallet app or create a new wallet on the platform and link it to their old wallets to claim the AirDrop.

While this process excited some traders, it raised significant security concerns among others.

Critics argue that requiring users to import private keys increases the risk of potential exploits, highlighting the need for safer and more transparent AirDrop methods.

Market performance post-listing

Magic Eden’s ME token saw a volatile debut following its listing. Trading began at approximately $10 on the 10th of December and surged to $12 during its first trading session, pushing its fully diluted valuation (FDV) to $15 billion.

However, the token’s momentum quickly reversed. As of this writing, ME is trading at around $5.08, marking a significant decline from its initial highs.

Consequently, its FDV has dropped to approximately $5.06 billion. Also, its market capitalization is at $663 million—an over 55% decline in the last 24 hours, according to data from CoinMarketCap.