Hype Marred by ME Claim Failures

The highly anticipated ME token airdrop from Magic Eden NFT marketplace made waves in the cryptocurrency community on December 10, 2024.

Valued at over $700 million, the event drew tens of thousands of participants eager to claim their share of the ME tokens. However, a convoluted claim process and technical glitches left many users frustrated and cost a significant number of them the chance to capitalize on peak token prices.

Complicated Claims and Missed Opportunities

Before the airdrop, market speculation was rampant, with analysts predicting an initial ME token price of $4.50. This translated to a distribution value of $562 million. On Whales Market, interestingly, pre-launch trading saw the token’s price climb from $6.40 to $7.00. Meanwhile, BeInCrypto reported that the ME token was trading at between $3 and $4 pre-market in the days leading up to the airdrop.

“The ME token is currently trading in pre-markets at $3-4 USD per ME. Pre-markets should always be treated with caution, but give an initial indication of where the value might be heading,” Azuki researcher wale.moca said.

At launch, however, Magic Eden’s ME exceeded expectations with an opening high of $17 recorded on CoinGecko. Within minutes, ME’s capitalization soared to $1.6 billion but plummeted below $1 billion in just 20 minutes, stabilizing at $700 million by the end of the day.

This rapid price action came on the back of a wave of selling pressure from users claiming their ME tokens. Some managed to cash out significant profits, with one trader making $586,800 through three swift sell orders, according to DEX Screener. Others, however, were unable to capitalize due to the challenging claim process and system errors.

“My app is stuck, can’t claim, people dumping ME like hot cakes,” one X user shared.

To claim ME tokens, users had to download the Magic Eden Wallet app, scan a QR code, connect to a computer, and maintain a minimum wallet balance of $10. Many encountered the dreaded “something went wrong” error or received claim confirmations without the actual tokens being credited. This delay proved costly as ME’s price dropped rapidly, leaving some unable to sell at peak values between $15 and $20.

“I’ve done everything as documented. My eligible wallet is MetaMask which can’t have SOL in it. I sent SOL to cover fees to my new ME wallet – but cannot claim it because it says I do not have SOL in my MetaMask wallet. I can’t be the only one,” one user lamented.

“It’s telling me to update IOS but I have the latest version,” said wale.moca, adding to the list of complaints that users shared.

“…I got that error at $11 billion market cap … Now I’m getting something went wrong message. I think it’s referring to the chart,” another user shared.

69 Million ME Tokens Claimed In First Hour

According to the ME Foundation, however, over 70,000 users successfully claimed 69 million ME tokens within the first hour. Despite the aforementioned challenges, some users devised novel strategies. One trader, known as @nfttim on X, used Magic Eden’s Dynamic Liquidity Market Making (DLMM) fee mechanism to earn $4,400 in fees within five hours.

“Whilst everyone around me was panicking to dump as quickly as possible, I was convinced I could make at least 50% of my drop in fees without selling a penny within 24 hours. My drop is still worth $17k. Think smart, not fast,” they stated.

The event reflects the massive interest in ME, making it one of the most significant airdrop events of 2024. Jack Lu, co-founder and CEO of Magic Eden, addressed the turnout and acknowledged the overwhelming traffic.

“If you are a long-term companion, we welcome you to join the ME community. If not, thank you for using Magic Eden,” Lu said.

Meanwhile, Magic Eden’s airdrop came on the heels of Hyperliquid’s HYPE token distribution, which set new DeFi standards with its seamless claim process and striking allocation. However, HYPE’s post-airdrop performance serves as a cautionary tale. After an initial surge, the token’s price dropped significantly, mirroring the fleeting nature of airdrop hype.

Magic Eden may face a similar trajectory if it cannot build sustained utility and trust for the ME token. While the airdrop displayed the platform’s popularity, the technical issues and missed opportunities could deter future participants.