Magic Eden Launches Governance Token ME, Targets Cryptocurrency Trading Landscape

Magic Eden, a popular cross-chain marketplace for non-fungible tokens (NFTs) officially announced the launch of its governance token ME

Non-fungible token (NFT) cross-chain marketplace Magic Eden has officially announced the launch of its governance token ME through the recently established Magic Eden Foundation.

Before the final version of the digital asset goes live, the Foundation will be performing a test with a token named TestME, which is designed to evaluate and optimize the platform’s infrastructure.

“$TestME is live for, well, testing — Help us test the claim experience with a similar flow you’ll go through to claim $ME.

Claim Experience link below 👇 pic.twitter.com/sBj3IoOQK3

— Magic Eden 🪄 (@MagicEden) October 29, 2024“

The window to claim the TestME token for eligible users opened today at 11 a.m. PST and will remain open until October 31 at 5 p.m. PSFT, after which its entire supply will be burned, according to the project’s official FAQs page.

The only eligible users who will have the chance to claim the TestME token will be those who have actively engaged with the Magic Eden platform in the past six months and completed transactions valued at over $100.

Due to regulatory issues, residents in the United States and the United Kingdom will not be able to participate in any of the two airdrops – the test and official airdrop.

The move positions Magic Eden alongside well-established marketplaces like Blue, LooksRare, and X2Y2 and would leave OpenSea as the only NFT marketplace without a native token.

Eligible Users Need to Create an ME Wallet to Claim Their Share of the Airdrop

Magic Eden is also taking advantage of the event to position its native crypto wallet, as users will need to create one by downloading the Magic Eden app to claim the official token ME once it goes live.

Those who already have a Magic Eden wallet will just have to scan a QR code with the app’s built-in tool to claim their share of the distribution.

The Magic Eden Foundation has warned users that they should not actively trade the TestME token as it has no intrinsic value. The token will only be used for the platform’s ability to integrate it into its systems.

The team seems to be taking notice of past incidents where test tokens like MockJUP ultimately became meme coins and deviated from their intended purpose as users started to trade despite the team’s warnings.

Magic Eden Emerges as a Strong Player in the Bitcoin-Based NFT Segment

Magic Eden’s token launch signifies a broader strategic pivot beyond the NFT sector. The platform has processed approximately $2.9 billion (24%) of total NFT trading volumes across all chains in the past year and dominates Bitcoin NFT secondary trading with an 80% market share.

The launch immediately expands the platform’s reach beyond the NFT sector as now users can actively participate in the protocol’s governance for the benefit of the community.

Since its launch on Solana in 2021, Magic Eden has expanded to multiple chains including Polygon and Base. The platform’s integration of Bitcoin NFTs during the Ordinals and Runes hype significantly boosted its market presence.

Also read: Magic Eden Review : Is this NFT Platform Trustworthy?

In the past year, the platform processed nearly $3 billion, accounting for approximately 24% of the total NFT volume across all chains. Meanwhile, ME dominated the secondary market for Bitcoin NFTs with an 80% market share.

The app reportedly has 250,000 monthly active users on its mobile wallet and is pursuing a mobile-centric approach that allows investors to easily trade both fungible and non-fungible digital assets from their phones.

Its expansion comes at a point when the market cap of NFTs is standing above $42 billion. Although this seems like a huge number, it pales in comparison to the $617 billion market cap it boasted in May 2022.

The Tokenomics of ME Have Not Been Disclosed Yet

Jack Lu, the CEO of Magic Eden, indicated that the ME token serves as an incentive to help onboard, engage, and reward users for their continuous effort to raise awareness and create a strong community.

“Soon on Magic Eden, you'll be able to trade all assets on all chains in 1 app. Think Binance/Coinbase but fully onchain. $ME will be a growth engine for our app.

I was inspired to create 5 growth principles called MAGIC to share what we're building & why transparently. MAGIC…

— Jack Lu (@0xLeoInRio) October 21, 2024“

The token allows holders to cast votes for major proposals, provides incentives to trade assets across major networks, and encourages the adoption of the Magic Eden open-source protocol.

The Foundation is aiming to perform a methodical rollout. The specific details of the project’s tokenomics have not yet been disclosed,