Magic Eden (ME)

Don’t be like Magic Eden: > started out as a Solana NFT platform > integrates ETH NFTs & Ordinals into the NFT marketplace > prides itself as the multi-chain NFT marketplace > does a $130M series B raise on that premise > releases $ME token > asks users to lock up $ME for staking > closes NFT marketplace for all other NFTs outside Solana > pivots to some degen solana casino as NFT volume dries down > now facing a lawsuit from investors of $ME stating that they haven’t stayed true to the promise utility of $ME The fall of Magic Eden has to be studied 💀

Crazy how fast things change in crypto A few years ago, Magic Eden was the NFT marketplace Hundreds of millions in monthly volume Everyone was farming, everyone was listing, and the token launch ($ME) had the whole timeline watching Fast forward to today... $ME is down 99% from its 2024 launch The project is dealing w a proposed federal class action over everything from governance delays to reward changes and the shutdown of the claim wallet The part I didn't expect? One of the people behind the lawsuit is a former Magic Eden employee Weird situation they in right now

Hello. You were defrauded via ME tokens. Oh. But I can launch shitters too kekw

MAGIC EDEN FACES CLASS ACTION LAWSUIT Magic Eden and its four co-founders face a nationwide class action lawsuit over $ME token utility promises that plaintiffs argue were delayed or abandoned as the token crashed 99% from launch. Read more here: https://t.co/T0nUm34L58

This is a much bigger story than the $ME token If ME loses, the entire crypto industry's GTM playbook becomes a liability The plaintiffs in the case are reportedly seeking damages under New York consumer protection law (though I haven't seen the filed complaint yet) That distinction matters more than it sounds Securities law needed an investment contract for a complaint. Consumer law just needs a buyer who relied on what they were told. Which means: - Roadmaps become promises - Discord hype becomes a representation - Founder AMAs become advertising claims i.e. every project that promised utility and delivered a chart going to zero is now a potential target

at the peak, Magic Eden was processing $756.5M in monthly NFT volume. it was the biggest NFT marketplace. even proceeded to launch a token, $ME. $ME reached a market cap of around $1.6B. today,it’s down roughly 99.7% from ATH. stakers barely get anything whenever there’s rev share now, it is facing a proposed federal class action. complaints cut across: > governance launched late > revenue sharing came later than expected > staking rewards fell short of expectations > trading rewards became seasonal > also the $ME claim wallet was shut down the plot twist here is that one of the plaintiffs used to work at Magic Eden. what’s even more surprising, is how quiet things have become. for a project that once dominated NFTs, you’d expect to see more product expansion. more experimentation. it just doesn’t have the same momentum it once had. i’ll be observing closely and see where this goes.

Magic Eden's problems are piling up. A class action alleges investors were promised governance, rewards, buybacks, and real utility for $ME that never arrived. Meanwhile, Ordinals OG and solana:dog1viwbb2vWDpER5FrJ4YFG6gq6XuyFohUe9TXN65u creator @LeonidasNFT claims Magic Eden shut down its Ordinals marketplace and paid mid-tier $ETH influencers to FUD Ordinals. Bullish, bearish, or done with Magic Eden? Let us know. 👇