Magic Eden crypto [ME] experiences rapid growth after listing, prompting concerns

Over the last 48 hours, the Magic Eden cryptocurrency has garnered significant attention due to recent announcements by major exchanges regarding the listing of its AirDropped native token, ME.

While this listing has resulted in heightened visibility for the token, it has also sparked mixed reactions and security apprehensions within the cryptocurrency community.

Introduction of Magic Eden’s ME Token on Exchanges

Binance, a leading global cryptocurrency exchange, disclosed the listing of Magic Eden’s ME token, facilitating trading and withdrawals starting from December 10th.

To mitigate associated risks with the token’s new listing status, Binance has implemented a “seed tag” for ME, necessitating users to periodically complete a platform quiz and adhere to the exchange’s terms of use to sustain trading the token.

Alongside Binance, South Korean exchanges Upbit and Bithumb also incorporated ME into their listings on December 10th, pairing the token with the Korean Won, Bitcoin, and Tether to broaden its market reach.

The buzz surrounding ME’s listings has propelled it to the top of Santiment’s trending assets list in the past 24 hours.

While the token has elicited diverse responses, prevailing sentiment leans towards positivity, constituting over 55% of the sentiment data evaluated.

Security Concerns Arise from AirDrop Process

The methodology employed by Magic Eden for its ME token AirDrop has attracted criticism from segments of the cryptocurrency community. The AirDrop initiative aimed to reward NFT traders for their historical engagements.

Participants were mandated to either import the private keys of their qualifying wallets into Magic Eden’s wallet application or establish a new wallet on the platform connected to their existing wallets to claim the AirDrop.

While this approach excited some traders, it instilled significant security concerns in others.

Detractors argue that mandating users to import private keys heightens the susceptibility to potential exploits, underscoring the necessity for more secure and transparent AirDrop mechanisms.

Post-Listing Market Performance Analysis

Post its listing, Magic Eden’s ME token witnessed a tumultuous debut. Trading commenced around $10 on December 10th, soaring to $12 during its inaugural trading session, propelling its fully diluted valuation (FDV) to $15 billion.

Nevertheless, the token’s momentum swiftly reversed. At present, ME is hovering around $5.08, indicating a notable decline from its initial peak value.

Consequently, the FDV has dwindled to roughly $5.06 billion, with its market capitalization standing at $663 million—a decline of over 55% in the past 24 hours, as per CoinMarketCap data.