Solana-Based NFT Marketplace Magic Eden Raises $130M At $1.6B Valuation

Solana-Based NFT Marketplace Magic Eden Raises $130M At $1.6B Valuation

2022-06-23 | Selina Mathew

Solana-Based NFT Marketplace Magic Eden Raises $130M At $1.6B Valuation

Introduction

The company had previously raised $24 million in a March round led by Polychain Capital.

Magic Eden had previously raised $24 million in a March round led by Polychain Capital. Since then, it's raised another $133 million from investors including Blockchain Capital and Pantera Capital. The company is now valued at over $1.6 billion.

This is significant because Magic Eden is the largest nonfungible token marketplace for the Solana blockchain by market share, according to its founder and CEO, Yorgos Lanaras. He told CoinDesk: "The goal of our technology is to ensure that all digital assets are treated equally."

Magic Eden is similar to other NFT marketplaces, such as Crypto.com and Opensea, that also host collectibles and digital art from artists on the blockchain.

Magic Eden is similar to other NFT marketplaces, such as Crypto.com and Opensea, which also host collectibles and digital art from artists on the blockchain.

Magic Eden's advantage is that it charges less than a penny to create an NFT, compared with the blockchain gas fees required on other marketplaces.

A Magic Eden token is worth 1/10th of a cent at present and can be bought through either fiat currency or cryptocurrency.

One difference is that Magic Eden charges less than a penny to create an NFT, compared with the blockchain gas fees required on other marketplaces.

You pay gas fees when you create an NFT.

Gas fees are also paid when transferring an NFT, which can be a problem if you need to make multiple transfers back and forth between yourself and friends while testing out your new collection of digital collectibles.

If you sell an NFT on Magic Eden's marketplace, the buyer will have to pay additional gas fees in order for the transaction to go through—even though Magic Eden already charged the seller a fee upfront.

Finally, if someone else buys any of your digital assets off of Magic Eden's marketplace (which they most certainly will), then you'll have to pay yet another round of gas fees again!

Magic Eden’s success is a good sign for Solana.

Magic Eden has been an active participant in the blockchain space since it launched back in 2019.

The company’s co-founder, Juan David Mendez, serves as a board member at Solana—and was instrumental in helping to develop the project’s innovative consensus algorithm and NFT-based marketplace framework.

As such, Magic Eden was one of the first projects to use Solana’s platform.

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Conclusion

The company raised $130M at a valuation of $1.6B during its Series A funding round earlier this year — and now has more than 1000 users who buy and sell digital art via their platform every day.

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