Here's why Magic Eden's airdropped token failed by 67%

Magic Eden, one of the largest non-fungible token marketplaces, saw its newly airdropped coin become a flop right after its launch on Tuesday, December 10.

According to a blog mailThe nft marketplace, launched in September 2021, allocated 12.5% ​​of its total supply of one billion Magic Eden (ME) to its airdrop. The token generation event caught the attention of major crypto exchanges.

Binance, Upbit, and Bithumb announced they would list ME hours before launch. Coinbase also joined the listings on Tuesday night, the exchange posted on x.

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https://twitter.com/CoinbaseAssets/status/1866606052403253626

crypto exchange OKX also began supporting the native Magic Eden token early Wednesday, according to an official. <a target="_blank" href="https://www.okx.com/help/okx-to-list-perpetual-for-me-crypto-along-with-its-margin-trading-and-simple” target=”_blank” rel=”nofollow”>advertisement.

Just after its launch, ME hit an all-time high of $17, according to data from CoinGecko. This raised the value of the airdrop, 125 million ME, to a staggering $2.12 billion, making it the third-largest free token distribution event after the $6.4 billion Uniswap airdrops. and $3.5 billion from ApeCoin, according to CoinGecko. <a target="_blank" href="https://www.coingecko.com/research/publications/biggest-crypto-airdrops” target=”_blank” rel=”nofollow”>data.

Despite notable listings, Magic Eden faced a harsh sell-off, a move expected with token airdrops. ME plummeted to an all-time low of $4.42 less than two hours after its launch and is still 67% below its $17 mark, currently trading at $5.71.

At this point, ME's market capitalization is around $745 million with a massive daily trading volume of $4.68 billion. The high level of trading volume suggests growing demand for the asset.

Another liquidation phase would still be expected for ME, as the token distribution has not yet been completed. Some x users also complained about the complexity of claiming free Magic Eden tokens.

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An x user with over 174,000 followers, known as Franklin, claimed that the Magic Eden wallet, used to collect the free tokens, was facing technical issues.

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Many more complained about the same problem in Franklin's x thread.