Here’s why Magic Eden’s airdropped token flopped 67%

Magic Eden, one of many largest non-fungible token markets, noticed its new child airdropped coin grow to be a flop instantly after its launch on Tuesday, December 10.

In line with a weblog afterThe NFT market, launched in September 2021, allotted 12.5% ​​of its complete provide of 1 billion Magic Eden (ME) to its airdrop. The token technology occasion caught the eye of main crypto exchanges.

Binance, Upbit and Bithumb introduced they have been itemizing ME hours earlier than launch. Coinbase additionally joined the lists on Tuesday, the alternate reported on X.

The OKX crypto alternate additionally began supporting Magic Eden’s native token early Wednesday, in response to an official announcement.

Instantly after launch, ME reached an all-time excessive of $17, in response to knowledge from CoinGecko. This introduced the worth of the airdrop, 125 million ME, to a whopping $2.12 billion, making it the third largest free token distribution occasion after Uniswap’s $6.4 billion and ApeCoin’s $3.5 billion airdrops, in response to CoinGecko. facts.

Regardless of the outstanding inventory market listings, Magic Eden confronted a tough sell-off, a transfer that was anticipated with token airdrops. ME fell to a low of $4.42 lower than two hours after launch and remains to be 67% off the $17 mark – at present buying and selling at $5.71.

At the moment, ME’s market capitalization hovers round $745 million, with a large every day buying and selling quantity of $4.68 billion. The excessive buying and selling quantity signifies growing demand for the asset.

For ME, one other part of a sell-off would nonetheless be anticipated because the token distribution has not but been accomplished. Some X customers additionally complained in regards to the complexity of claiming the free Magic Eden tokens.

An

Many extra folks complained about the identical drawback in Franklin’s X-thread.