Swap Tracker
We use cookies to make our site work. By clicking "Accept", you agree to our website’s cookies use as described in our Privacy & Cookie Policy.
John Martin 15 Jan 2025 ◦ 4 min read

Magic Eden's ME token airdrop: a $700M rollercoaster

Magic Eden's ME token airdrop: a $700M rollercoaster

Magic Eden NFT marketplace launched the ME token on December 10. As a part of the airdrop, the Magic Eden team distributed approximately $700 million in ME tokens to its large community. 

However, many began selling the tokens immediately, causing the asset's price to drop by 50% in less than 24 hours after launch.

ME Token Price Drop

Prior to Airdrop, the crypto community actively discussed what price the ME token would trade upon launch. Many analysts predicted that Magic Eden's assets would debut at US$ 4.50. Ahead of the launch, the coin value on the whale market rose from $6.40 to $7.00. In the pre-market period, the ME exchange rate was $4.

Consequently, the launch of the Magic Eden crypto exceeded all expectations. Within minutes, the price of ME reached $17 and the capitalization soared to $1.6 billion. After 20 min, however, the figure fell and stabilized at $700 million by the end of the day.

The sharp correction was caused by the selling pressure from users who received ME in the giveaway and rushed to cash at the airdrop. Some were able to make significant contributions to airdrops. For example, one trader received USD 586,000.

App Issues Reported by Users

However, not everyone could take advantage of the situation because of the complicated process of obtaining tokens and system errors. To get ME tokens, users must have done the following:

  1. Download the Magic Eden Wallet application.
  2. Scan a QR code;
  3. Connect to a computer;
  4. Had at least $10 in ME equivalent in their wallets.

Many encountered technical errors and were unable to withdraw their coins quickly. The ME price dropped quickly, so users did not have time to sell tokens at the maximum price, which ranged from $15 to $20.

Users have reported problems with token withdrawal. Magic Eden was sending vague responses to users via the official X account, offering them to update their IOS as the only solution. 

Despite these difficulties, some researchers have discovered new strategies to make money on airdrops. For example, one trader under the nickname nfttim in X earned $4,400 on commissions to provide liquidity on the platform.

Magic Eden’s Response

Magic Eden acknowledged the issues stemming from an unexpectedly high traffic volume on their mobile app during the launch period. The project’s representatives took responsibility for overseeing the token's rollout. However, the lack of help and clear communication with the community amidst the airdrop event has undermined the confidence of many users.

Users remain skeptical whether future updates will adequately resolve these persistent issues. 

Expert Analysis and Opinions

Industry experts have shared their insights on the situation with Magic Eden tokens airdrop. Many observers have pointed out that, while excitement around new tokens typically generates significant trading activity and market attention, platforms should focus on user experience and security measures to maintain trust in their communities.

Critics have pointed out that deviating from best security practices could put users' assets at risk. For example, some experts have pointed out that storing sensitive data such as recovery phrases and private keys in an application without obvious deletion methods poses significant risks. As one expert noted, "Storing this information digitally is a bad decision,” emphasizing the need for users and developers to be careful when managing sensitive data.

Conclusion

Magic Eden news is one of a kind that is typical for the cryptocurrency market, but it is striking because of the scale of the airdrop. Magic Eden was caught in a perfect storm, apparently not calculating how much the sale would affect the token price, and not preparing for the increased traffic within the ecosystem.

Likely, the asset will slowly recover to its pre-airdrop value and the project team will be more cautious about giving away free tokens to promote the project.

As in cryptocurrencies, potential investors should approach such developments with caution. The volatility of new tokens, such as ME, reminds crypto enthusiasts and newbies that thorough research is essential before making investment decisions. While Magic Eden works to rectify app issues and restore user confidence, individuals should remain vigilant and informed about their investments in this dynamic space.

Related posts

Meme coins 101: The fun side of crypto with real impact

Meme coins 101: The fun side of crypto with real impact

23 May 2025 ◦ 14 min read
In the fast-moving world of crypto, it’s not all about complex charts and serious talk. Enter meme coins — a playful twist born out of internet
What is Dogecoin (DOGE)?

What is Dogecoin (DOGE)?

09 May 2025 ◦ 14 min read
What is Dogecoin?  Dogecoin, created in 2013 as a joke, quickly gained a loyal following with its Shiba Inu mascot and fun, approachable vibe. Initially never intended to be a serious project, it
Which crypto will explode in 2025?

Which crypto will explode in 2025?

26 Mar 2025 ◦ 10 min read
The crypto market changes constantly, and some assets rise above the rest every year. As 2025 began, investors started searching for the next crypto to explode—a project that promises massive gains like Bitcoin and Ethereum once delivered. But which
Token unlocks schedule: the impact of upcoming token releases

Token unlocks schedule: the impact of upcoming token releases

22 Jan 2025 ◦ 10 min read
Token unlocks often create ripples—or, in some cases, tidal waves—in the market. These events, where locked tokens are circulated, can significantly impact supply, demand, and prices. In this article, we’ll break down the concept of t

Tags

Trading Networks Cryptocurrencies Tokens

Recent posts

Meme coins 101: The fun side of crypto with real impact
What is XRP?
SwapSpace Weekly Recap: Coinbase joins S&P 500, Galaxy hits Nasdaq, and safety concerns are growing
SwapSpace Weekly Recap: from BTC’s surge to meme coin madness

BTC  to USDT : best rates

btc-icon
btc
1