Magic Eden, a popular cross-chain marketplace for non-fungible tokens (NFTs) officially announced the launch of its governance token ME through the recently established Magic Eden Foundation.

However, before the final version of the digital asset goes live, the Foundation is performing a test with a token named TestME that is designed to evaluate and optimize the platform’s infrastructure.

The window to claim the TestME token for eligible users was opened today at 11 a.m. PST and will remain open until October 31 at 5 p.m. PSFT. After that, the token’s entire supply will be burned, the official FAQs page from the project indicates.

The only eligible users who will have the chance to claim the TestME token will be those who have actively engaged with the Magic Eden platform in the past six months and completed transactions valued at over $100.

Residents in the United States and the United Kingdom will not be able to participate in any of the two airdrops – the test and official airdrop – due to regulatory issues. The move positions Magic Eden alongside well-established marketplaces like Blue, LooksRare, and X2Y2 and would leave OpenSea as the only NFT marketplace without a native token.

Eligible Users Need to Create an ME Wallet to Claim Their Share of the Airdrop

Magic Eden aims to take advantage of the event to position its native crypto wallet as users must create one by downloading the Magic Eden app to claim the official token ME once it goes live.

Those who already have a Magic Eden wallet will just have to scan a QR code with the app’s built-in tool to claim their share of the distribution.

The Magic Eden Foundation has warned users that they should not actively trade the TestME token as it has no intrinsic value. The token will only be used for the platform’s ability to integrate it into its systems.

The team seems to be taking notice of past incidents where test tokens like MockJUP ultimately became meme coins and deviated from their intended purpose as users started to trade despite the team’s warnings.

Magic Eden Has Emerged as a Strong Player in the Bitcoin-Based NFT Segment

Magic Eden’s token launch signifies a broader strategic pivot beyond the NFT sector. The platform has processed approximately $2.9 billion (24%) of total NFT trading volumes across all chains in the past year and dominates Bitcoin NFT secondary trading with an 80% market share.

The launch immediately expands the platform’s reach beyond the NFT sector as now users can actively participate in the protocol’s governance for the benefit of the community.

Since its launch on Solana in 2021, Magic Eden has expanded to multiple chains including Polygon and Base. The platform’s integration of Bitcoin NFTs during the Ordinals and Runes hype significantly boosted its market presence.

Also read: Magic Eden Review : Is this NFT Platform Trustworthy?

In the past year, the platform processed nearly $3 billion, accounting for approximately 24% of the total NFT volume across all chains. Meanwhile, ME dominated the secondary market for Bitcoin NFTs with an 80% market share.

The app reportedly has 250,000 monthly active users on its mobile wallet and is pursuing a mobile-centric approach that allows investors to easily trade both fungible and non-fungible digital assets from their phones.

Its expansion comes at a point when the market cap of NFTs is standing above $42 billion. Although this seems like a huge number, it pales in comparison to the $617 billion market cap it boasted in May 2022.

The Tokenomics of ME Have Not Been Disclosed Yet

Jack Lu, the CEO of Magic Eden, indicated that the ME token serves as an incentive to help onboard, engage, and reward users for their continuous effort to raise awareness and create a strong community.

The token allows holders to cast votes for major proposals, provides incentives to trade assets across major networks, and encourages the adoption of the Magic Eden open-source protocol.

The Foundation is aiming to perform a methodical rollout. The specific details of the project’s tokenomics have not yet been disclosed, such as the total supply, the percentage that will go to the community, and how much the developing team will receive.

These are all aspects of the airdrop that can either help it succeed or doom it from the get-go as controversies abound lately when it comes to crypto airdrops.

Magic Eden’s ME token launch represents a significant milestone in the platform’s strategic evolution beyond NFTs into the wider cryptocurrency trading landscape. The platform’s cautious approach to the TestME trial demonstrates a commitment to fostering a stable environment while also complying with regulatory demands in certain countries.

The platform’s emphasis on mobile accessibility and cross-chain functionality suggests a vision for broader market participation and increased user engagement.

As Magic Eden continues to expand its services and capabilities, the ME token could play a crucial role in facilitating platform governance, incentivizing user participation, and driving the adoption of its open-source protocols across the cryptocurrency ecosystem.

This strategic expansion, coupled with the platform’s existing market dominance in NFT trading, particularly for Bitcoin Ordinals and Runes, positions Magic Eden as a major player in the evolving digital asset landscape.