NFT markets lost 23% of their market value on average in mid-June during what is dubbed the beginning of a “crypto winter.” The Solana blockchain itself has also suffered multiple outages during 2022 hurting its token value.
However, the team and investors said they aren’t worried about the downturn. Between the funding and the planned integrations, they believe that the company has everything it needs to maintain momentum.
“A downturn, especially when the company is as well-capitalized as Magic Eden and that has been generating real significant cash flows, is actually a pretty great position to acquire that talent and just build through it,” says Greylock partner Mike Duboe told Forbes.
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- Magic Eden Builds What the Community Wants – Magic Eden COO.
- The OpenSea Challenge to Magic Eden
- Solanabased nft magic eden series1
- Solanabased nft magic eden series-03
- Valuation surge
- Solanabased nft magic eden series5
- $1.6B Magic Eden Valuation Validates the NFT industry and Market – Magic Eden COO.
Magic Eden Builds What the Community Wants – Magic Eden COO.
The funds raised will expand Magic Eden’s primary and secondary marketplaces. Furthermore, the team will look into opportunities beyond Solana and improve its products and other facets of its operations.
Mr. Yin also added that they would keep building what the community wants.
When we started, we weren’t the first movers on Solana. We had to play catch-up.
The OpenSea Challenge to Magic Eden
As the embrace of NFTs and the innovations around them continue to grow, the competition amongst outfits in these spaces has also soared in recent times.
OpenSea, arguably the biggest NFT trading platform around, has integrated Solana protocol, posing a direct threat to Magic Eden. While this may sound worrisome, Magic Eden co-founders Jack Lu and Zhouxun Yin are excited to continue building and are committed to exploring avenues to develop the right solutions that will make the platform a gateway to the Web3.0 world.
With respect to NFTs, Magic Eden is built on the ideology that “They’re the fun, the social, the cultural, and the very emotionally relatable aspects of a blockchain or Web3 use case,” says CEO and co-founder Jack Lu.
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The Solana-based NFT marketplace Magic Eden, launched in September of 2021, recently raised $130 million in a Series B funding round co-led by Greylock Partners and Electric Capital, raising its total value to $1.6 billion.
Previous investors in Magic Eden such as Sequoia Capital and Paradigm also participated in the funding round, along with newcomer Lightspeed Venture Partners. The Series B round follows a $27 million Series A round for Magic Eden that occurred in March of this year.
Magic Eden’s secondary marketplace boasts over 7,000 NFT collections and is responsible for over 95% of all Solana-based NFT volume.
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Investors were attracted by Magic Eden’s fast growing share of the market on Solana, co-founder and CEO Jack Lu told The Block in an interview.
According to The Block’s Data Dashboard, Magic Eden is currently the third-largest NFT marketplace by trading volumes. It was launched less than a year ago in October.
Another reason investors wanted to take part in Magic Eden’s round is the firm’s recent expansion in gaming NFTs, said Lu. “Investors were very optimistic about our expansion in this area given our strong start in this category,” he said.
Magic Eden says its games discovery portal, Eden Games, has launched 45 games and seen 90% of all gaming NFT volume on Solana since its launch in March of this year.
Notably, Magic Eden managed to close the round in the current market downturn.
Solanabased nft magic eden series5
NFTs use blockchain technology to represent the ownership of virtual items such as digital art, collectibles, videogame items and music.
Since its inception, Magic Eden’s platform has become the leading platform for Solana NFTs, receiving an average of 22 million sessions per month and more than 44,000 NFTs traded daily. Launchpad is a platform that allows creators to “launch” their collections and has been successful in supporting the creation and launch of more than 250 projects to date.
“We know that NFTs are the best way to bring people onto the blockchain,” said Jack Lu, chief executive and co-founder of Magic Eden. “NFTs are exciting social and cultural experiences that bring connectivity to the world. Since our inception, we’ve made the conscious decision to support both our creators and users through this tremendous era of growth for both the company and the industry.
We were the first to innovate in a number of areas, such as pairing NFT minting capabilities via Launchpad with a secondary marketplace and embedding gameplay with NFT games directly on the platform.”
With this new funding, Magic Eden intends to branch out from Solana and build its marketplace to support other blockchains. The company has not given any details on which other blockchains the company intends to support. The dominant blockchain for NFTs by the numbers is Ethereum, followed by Dapper Labs’ Flow, Wax and Polygon, so it’s most likely these chains will be somewhere on that list.
The funding round for Magic Eden comes at a time that crypto markets, and global tech stocks more broadly, are in a downturn.
Magic Eden, the largest nonfungible token marketplace for the Solana blockchain by market share, today announced that it has raised $130 million in new funding to expand its operations.
Electric Capital and Greylock co-led the Series B round, with Lightspeed Venture Partners, Paradigm and Sequoia Capital also participating. The funding also raised the company’s valuation to $1.6 billion since its last round in March, which makes it the latest crypto “unicorn.”
Magic Eden launched in September 2021 with the goal of defining the future of nonfungible tokens by providing a place for creators to introduce creators and users to the assets.
- Solana-based NFT marketplace of Magic Eden has raised $130 million in a Series B round at a $1.6 billion valuation.
- The funds will expand Magic Eden’s primary and secondary marketplaces.
The Solana-based NFT marketplace of Magic Eden has raised $130 million in a Series B round led by Electric Capital and Greylock Partners. The new round of funding brings Magic Eden’s valuation to $1.6 billion and comes less than three months after closing a $27 million Series A funding.
$1.6B Magic Eden Valuation Validates the NFT industry and Market – Magic Eden COO.
Zhuoxun Yin, COO of Magic Eden, told TechCrunch that the valuation validated the NFT industry and market. He explained:
[This valuation] more than ever validates the industry and market we’re in.
They are one of the fastest moving and most user-centric companies in Web3.”
Magic Eden currently occupies the top spot as the NFT marketplace on the Solana blockchain, processing as much as 97% of daily NFT purchases on the platform, perDune Analytics. While Solana is highly regarded as a scalable and highly functional Layer-1 protocol, it hascontinued to face outagesof which it has recorded at least 4 this year.
This is a major impediment to the growth of Magic Eden which is now looking at avenues to explore a multi-chain solution. The accrued funds will be diverted towards achieving this goal.
Magic Eden is an NFT Marketplace that holds projects of all kinds, but with a few distinctions that make it stand out from others.
It has become the go-to NFT marketplace on Solana, where celebrities such as Reid Hoffman’sDall-e-2, Lonzo Ball (joining with Michael Jordan and his son Jeffrey on HEIR), and “born-again Solano (SOL) proponent” Mike Tyson have joined in on the run on Ethereum-based projects during a time when collectors are looking for NFT alternatives with lower transaction fees.
While other marketplaces stayed laser-focused on building the Ethereum community, Magic Eden’s founders were anticipating the need for lower-cost NFTs.
Magic Eden’s Australian-born co-founders Jack Lu and Zhuoxun Yin jumped on this and created their own wave before the $2 trillion crypto bear market hit that started decimating NFT trade volume in June.