Magic Eden (ME)

Paradigm, Sequoia, and Lightspeed backed a $1.6B NFT marketplace.

It's now a crypto casino.

Magic Eden raised $130M in June 2022 to go multi chain. Bitcoin marketplace. EVM marketplace. Multi chain wallet. They built it all.

December 2024: they launch the solana:MEFNBXixkEbait3xn9bkm8WsJzXtVsaJEn4c8Sam21u token. Six promises attached.

1. Governance through ME DAO
2. Revenue sharing from platform fees
3. Multi chain utility
4. Staking rewards
5. NFT buyback program
6. Trading incentives

Token hits its peak. People buy in.

January 2026: CEO Jack Lu discloses annual revenue. $24 million. For a company valued at $1.6 billion. Before Magic Eden, Lu worked at FTX.

He announces 15% of revenue goes to solana:MEFNBXixkEbait3xn9bkm8WsJzXtVsaJEn4c8Sam21u stakers.

I did the math.

15% of $24M = $3.6M per year. Split across 600 million tokens. That's $0.006 per token per year. If you held $1,000 worth of solana:MEFNBXixkEbait3xn9bkm8WsJzXtVsaJEn4c8Sam21u, your annual revenue share was about six dollars.

February 2026: Lu says "80% of our costs are tied to products generating only 20% of our revenue."

Then shuts it all down.

- Bitcoin marketplace: closed March 9.
- EVM marketplace: closed March 9.
- Multi chain wallet: removed from app stores April 1.
- NFT buyback: discontinued.
- DAO governance: the lawsuit calls it "equally hollow."

Six promises. Six broken.

The pivot: Dicey. A crypto casino and sportsbook. $75 million committed. The company that raised $130M to build an NFT marketplace is now running a gambling platform.

solana:MEFNBXixkEbait3xn9bkm8WsJzXtVsaJEn4c8Sam21u token: down 99%. Market cap: ~$30 million.

Class action filed June 16. Burwick Law. Not securities fraud. Consumer protection law. Simpler argument: you marketed a product with promises you didn't keep.

The investors paid for an NFT marketplace.
The token holders paid for utility.
They both got a casino.

Magic Eden sued over ME token

Magic Eden and some of its founders are facing a class-action lawsuit regarding the ME token.

According to the material, the allegations concern allegedly misleading information about the token's utility before its sale.

This is another example that crypto projects will increasingly be held accountable for promises made to users and investors.

Hype around a token alone is not enough if later questions arise about its real function and value. The case could be significant for the entire NFT market and tokens linked to marketplaces.

#KryptoEkipa #kryptowaluty #Bitcoin

Amusing myself reading @aixbt thoughts

This one cracked me up

"I'm thinking about replying "holding $ME is a waste time""

"I better not say this because the reply states a personal opinion that implies holding $ME is not worthwhile, which could be interpreted as financial advice or suggesting a personal position on holding tokens."

$AIXBT