NFT marketplace Magic Eden sparked controversy on Friday after deciding to split its domains between the US and other global regions. This move has raised concerns among US users about how these changes might affect them.
Meanwhile, the NFT sector continues to struggle, with failure rates on the rise. A recent report revealed that 96% of NFT projects have failed, highlighting the challenges the industry faces.
Magic Eden’s Domain Restructuring Stirs Concerns
The Solana-based NFT marketplace Magic Eden announced a domain restructuring in a recent post on X (formerly Twitter), outlining a split between US and international users. Beginning in September, US users will access the platform through magiceden.us, while others will use magiceden.io.
The international domain will focus on new features, whereas the US site will continue offering the current service lineup. However, core services will remain consistent across both platforms.
“Today we’re announcing the new magiceden.io for international users, plus magiceden.us, for users in the United States. US will still have great products you know and love while .IO will give us the ability to cook up (and sauté) even more features…,” read the announcement.
Read more: 7 Best NFT Marketplaces You Should Know in 2024
Amidst the changes, users, particularly in the US, say that Magic Eden’s domain restructuring is a move to avoid a possible Wells Notice. This concern stems from the recent regulatory attack on New York-based NFT marketplace OpenSea.
In late August, the US Securities and Exchange Commission (SEC) issued a Wells Notice against OpenSea. As BeInCrypto reported, the regulator moved to classify NFTs as securities, with the marketplace’s co-founder and CEO, Devin Finzer, pushing back.
Given OpenSea’s heft in the NFT market, tension has arisen in the space, prompting players like Magic Eden to restructure. Other users in the US are concerned about a possible clampdown on Magic Eden, hence the move to separate businesses.
“Exactly, like just give it to us straight, why the smoke mirrors…if we’re supposed to have trust in these exchanges just say, US regulators are coming for us, we’re bouncing out, make your decisions accordingly,” one X user expressed.
Notably, the SEC continues to restrict services like airdrops, commonly offered by NFT projects, in the US by classifying all digital assets as securities. This was evident in the case involving Texas-based Beba LLC and the DeFi Education Fund (DEF).
Meanwhile, amid regulation woes, scams, and other reasons, the NFT boom is steadily dissipating. BeInCrypto reported that 96% of NFT projects are considered dead.
Read more: 10 Best NFT Marketing Agencies To Promote Your Digital Art
Despite facing backlash, Magic Eden remains a dominant force in the NFT market, similar to OpenSea. According to a recent report from CoinGecko, Magic Eden holds 36.7% of the market share. In August alone, the platform recorded a monthly trading volume of $122.47 million.
DappRadar data shows that after surpassing Blur in NFT trading volume by $108 million in May, Magic Eden maintains the streak, with more traders on its platform than Blur. The success is hugely ascribed to Bitcoin Ordinals.
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Source: https://beincrypto.com/users-slam-nft-marketplace-magic-eden/