This is an opinion I raised a few weeks ago about Magic Eden.
Magic Eden is desperately trying to regain its relevance in the NFT space by bribing traders to use its platform with a pathetic “chapter two” scheme.
It will involve some half-hearted attempts to launch NFT aggregation on Solana, open source some of its code, and—for a very short time—pay traders a tiny bonus to buy and sell Solana NFTs.
Magic Eden has in recent months been dethroned as the second-best NFT marketplace behind OpenSea.
It now holds the 4th position and a measly 2.1% of overall NFT market share by trading volume, according to CoinGecko.
Even on Solana, Magic Eden is losing ground to newcomer Tensor, which raised $3 million in a March seed round.
Magic Eden was overvalued at $1.6 billion following a $130 million funding round last June.
In a desperate move to compete with OpenSea and Blur, which use crypto airdrops to reward traders, Magic Eden will institute a -0.25% fee for NFTs.
Basically it will pay traders SOL whenever they sell a Solana NFT or whenever their offer to buy a Solana NFT is accepted.
If you list an NFT for 100 SOL, or about ~$2000, on the marketplace, when it sells you will get 100.25 SOL, a $5 profit? Maybe?
If you make an offer on an NFT worth 100 SOL, you will get an extra 0.25 SOL once your bid is accepted.
The amount of SOL a user receives will be higher depending on the price of the NFT, but still not enough to make up for the lack of quality and variety on Magic Eden.
