Magic Eden Introduces Exclusive US Domain, Segregating NFT Services in US

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2024-09-06 02:58:47

Magic Eden NFT NFT Marketplace

The decision likely stems from increasing regulatory scrutiny. Last updated:

September 6, 2024 06:58 EDT

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto…

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Last updated:

September 6, 2024 06:58 EDT

Why Trust Cryptonews With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews Leading non-fungible token (NFT) marketplace Magic Eden has unveiled plans to launch a separate domain exclusively for its U.S. users.

In a recent post on X, the platform said it will offer U.S.-based services through a dedicated domain, while the platform’s international .io site will continue introducing new features and innovations.

The decision to segregate U.S. services likely stems from increasing regulatory scrutiny in the country.

Magic Eden’s move may be a preventive step in response to recent actions by the U.S. Securities and Exchange Commission (SEC), including a Wells notice sent to the NFT marketplace OpenSea.

Crypto Community Criticizes Magic Eden’s Move

The move also sparked a backlash from the crypto community, with many voicing concerns over the segregation of services.

Several users took to social media, particularly on X (formerly Twitter), to express frustration over the limitations the new U.S.-exclusive domain may impose.

Among the concerns is the fact that certain features, such as airdrops, will no longer be available to U.S. residents.

Critics claim that this shift represents a form of restriction for U.S. users, with some arguing that Magic Eden is becoming too centralized.

One user remarked that the platform was effectively barring U.S. users from participating fully in the NFT market, impacting their ability to make money.

“In other words we are about to restrict everyone in the USA from using our services & making money since we are a centralized entity,” one user wrote.

In other words we are about to restrict everyone in the USA from using our services & making money since we are a centralized entity.

Services like (Airdrops) are not available in your area but is available for everyone else in the world who don’t have hostile regulations.
🤨

— AlphaGamer.Sats_🛡_(510.Sats)_(💙,🧡) (@AlphaGamer_sats) September 5, 2024

Meanwhile, Magic Eden is also focusing on expansion.

In August, the platform introduced the ME token through the Magic Eden Foundation, aiming to enhance cross-chain trading and drive the growth of decentralized applications (DApps).

The ME token is expected to play a central role in the platform’s future eco, particularly as it seeks to establish a decentralized autonomous organization (DAO).

CryptoPunks NFT Sold at 80% Discount

While the NFT market has slightly recovered lately, it is still at the bottom compared to the 2021 highs.

Just recently, a CryptoPunk NFT sold for $23.2 million in 2022, was resold at an 80% discount for 1,500 ETH, worth around $3.9 million.

The original owner, Deepak Thapliyal, who purchased the NFT for 8,000 ETH, bid farewell to the token on X.

The new buyer, VOMBATUS, later confirmed the purchase, equating the low price to getting a “free” token.

Meanwhile, there has been a trend of companies discontinuing their involvement in the NFT space.

Back in March, Starbucks, the renowned multinational coffee chain, made the decision to terminate its NFT rewards program.

In January, gaming retailer GameStop announced the closure of its NFT marketplace after scaling back its crypto services over the past two years.

More recently, X, under the ownership of Elon Musk, discontinued a feature that allowed premium users to use NFT images as their profile pictures.

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