PANews reported on December 11 that according to CoinDesk, the fully diluted valuation of the new token ME of the NFT trading platform Magic Eden reached $15 billion in the first few minutes of trading on Tuesday. But as more and more claimants successfully processed their airdrops (and even sold them in some lucky cases), this valuation began to fall sharply. In the end, its fully diluted valuation stabilized at around $5 billion. Some observers believe that the fact that the price of the ME token has only fallen and not risen is a punishment for the crypto project because its airdrop processing procedures are very atypical and, according to three industry insiders, may even violate best security practices. Some users seem to have lost funds in their wallets during Magic Eden's complicated process.
An industry insider who wished to remain anonymous said that the wallet issues that caused problems when ME launched could also threaten user privacy. Traders need to import wallet private keys into the Magic Eden app or create a new wallet and link the old wallet to claim the airdrop, but the latter may undermine privacy. The Magic Eden wallet app saves backups of user recovery phrases and private keys, and lacks a clear way to delete them, violating security regulations. The process also makes airdrop claimants vulnerable to attacks by bad actors who may pretend to be Magic Eden. In addition, wallets created within the Magic Eden app cannot be easily transferred to other wallet apps, which is related to the fact that Magic Eden relies on a different technical setup than other mainstream wallets. This can be overcome by importing private keys, which are hidden deeper in the Magic Eden app settings. Less savvy users may try to transfer their Magic Eden wallets to another app using only the 12-word recovery phrase.
