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NFT Marketplace Magic Eden Raised $130M to Expand Beyond the Solana Ecosystem

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Solana’s leading NFT marketplace Magic Eden has become a unicorn in less than a year since its launch last September. The latest fundraising round increased his valuation to $1.6 billion. The founders have vowed to speed up recruitment despite the downsizing trend that has hit crypto firms amid market downturns.

Multi-chain ambition

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Magic Eden, the NFT marketplace that accounts for more than 90% of Solana’s NFT volume, has announced that it has raised an additional $130 million and its valuation has reached $1.6 billion. That’s about ten times more than his estimate three months ago, the source said. acquired from Bloomberg.

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The news comes in the context of a growing wave of pessimism overshadowing the crypto industry as exchanges like Coinbase and Gemini cut their headcount en masse to survive a months-long bear market. The company decided to go against the wind, poised to almost triple its headcount to 140 from its current 50 employees.

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Jack Lu, co-founder of Magic Eden, said NFT transaction volume on his platform has continued to rise in recent months, even though the price of SOL has declined by more than 80% compared to ATH. He added that the company posted $7.5 million in revenue in May and has been profitable since launch. The goal of the platform is to reach $100 million in annual revenue.

The dominant platform on Solana is reportedly set to use the newly raised capital to expand its primary and secondary marketplaces and support NFT creators.


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Zhuoxun Yin, COO of Magic Eden and former product manager of Coinbase, revealed that the market plans to serve noteworthy NFT projects outside the Solana network and support multiple blockchains in the future. However, Yin did not specify which blockchain other than Solana would be launched first on the market.

Its main competitor, OpenSea, currently supporting Solana, Ethereum, Klaytn, and Polygon, was valued at $13.3 billion by January of this year. Founded less than a year ago, Magic Eden has become one of the top three NFT marketplaces, according to Dapradar. It has over 250 projects on its main platform, Launchpad, and over 7,000 collections on the secondary market.

Solana or Ethereum

Sequoia Capital, the famed venture capital firm behind Magic Eden, has previously raised concerns about OpenSea’s dominance in the NFT market, saying the platform could take advantage of the Solana ecosystem before OpenSea expands its services to the blockchain.

Solana attracted primarily retail investors due to the notable advantage of Solana’s low gas fees for processing NFT transactions. However, the network is also notorious for its frequent outages due to technical issues causing temporary suspensions of block production and transaction processing. Thus, security is the main concern of the Solana network.

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Credit : cryptopotato.com

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