Metaroids

    Subscribe to the Metaverse Newsletter

    Join me as we build a network of metaverse and web3 pioneers.

    What's Hot

    Retrieval Augmented Generation to Replace Google Search, Not ChatGPT

    January 30, 2023

    OpenAI Hired Developers to Train AI to Replace Developers

    January 28, 2023

    Ex-Google SVP Launched AI-Powered Search Engine

    January 28, 2023
    Twitter
    Metaroids
    • Home
    • News

      Retrieval Augmented Generation to Replace Google Search, Not ChatGPT

      January 30, 2023

      OpenAI Hired Developers to Train AI to Replace Developers

      January 28, 2023

      Ex-Google SVP Launched AI-Powered Search Engine

      January 28, 2023

      BuzzFeed Plans to ‘Hire’ ChatGPT as Newest Content Creator

      January 28, 2023

      Lawyer Could Face Jail Time for Bringing AI in Court

      January 26, 2023
    • Learn

      Midjourney Mastery: A Guide to Using Image Prompts

      January 22, 2023

      Design UI Like a Pro: 5 Advanced Midjourney Tricks

      January 13, 2023

      Reddit Moons: An Ultimate Guide

      January 12, 2023

      The ChatGPT Era: How Creatives Can Ensure Longevity & Thrive

      January 7, 2023

      Google Translate vs ChatGPT vs DeepL: Translator Ultimate Showdown

      January 6, 2023
    • Others
      1. Feature
      2. Press Release
      3. Opinion
      4. Lists
      5. View All

      ChatGPT: How AI Can Potentially Impact the World’s Religions

      January 27, 2023

      Humans’ Quest to Decode Animal Languages Through AI

      January 25, 2023

      ChatGPT + Wolfram Alpha: A Super Powerful Assistant

      January 22, 2023

      AI-Powered Sexbots and the Risks They Could Trigger in the Future

      January 21, 2023

      Hyped NFT Trippin’ Ape Tribe to Launch on Solana in Mid-Late May

      May 6, 2022

      Microsoft’s VALL-E May Trigger an Avalanche of Cyber Crimes

      January 18, 2023

      Why Web3 Gaming is Failing & How to Turn the Tide

      December 23, 2022

      Can the Metaverse Work Without Blockchain?

      August 17, 2022

      NFTs are 100% Sustainable: Here’s Why Critics are Wrong

      August 8, 2022

      Best Solana Wallets for NFTs, DeFi, & Security

      October 27, 2022

      Top Move-to-Earn Crypto Apps That Pay You to Exercise

      August 31, 2022

      Top 13 Blockchains for NFTs (Choose Wisely)

      August 16, 2022

      Top Selling NFT Collections of August 2022

      August 9, 2022

      Retrieval Augmented Generation to Replace Google Search, Not ChatGPT

      January 30, 2023

      OpenAI Hired Developers to Train AI to Replace Developers

      January 28, 2023

      Ex-Google SVP Launched AI-Powered Search Engine

      January 28, 2023

      BuzzFeed Plans to ‘Hire’ ChatGPT as Newest Content Creator

      January 28, 2023
    • Contact
    Twitter Discord LinkedIn
    Metaroids
    Home » Magic Eden Is Losing its Web3 Status, Could This Be Its Downfall?
    Magic Eden Is Losing its Web3 Status, Could This Be Its Downfall
    Magic Eden Is Losing its Web3 Status, Could This Be Its Downfall
    News

    Magic Eden Is Losing its Web3 Status, Could This Be Its Downfall?

    By DamoclesJuly 26, 2022Updated:July 27, 2022No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Email Reddit Telegram

    Magic Eden (ME) appears to have allegedly abandoned its permissionless ethos by quietly upgrading its smart contracts to require its signature for every transaction that occurs on the platform, which could cause adverse network effects across the Solana web3 ecosystem, according to NFT analyst Pland.

    Magic Eden's Two Signers
    Magic Eden’s Two Signers

    The move has stirred controversy that rippled throughout the web3 space, as it basically drives ME closer to web2. The marketplace that once carried the banner of decentralization is now under threat with this new policy, which may very well introduce a single point of failure.

    Who Will Be Affected The Most?

    For third parties, ME’s new policy means that the only option they can do to allow collectors to purchase listed NFTs is to acquire an application programming interface (API) key. While the policy isn’t illegal, this scheme doesn’t sit well in a web3 environment, which, in the first place, was built to counter this centralized system.  

    Aggregators, which help collectors buy or compare NFT prices from different platforms in one place, were the first casualties of ME’s new policy. CoralCube, one of the most popular aggregator platforms, is now prohibited from sweeping ME’s digital items and, as a result, has already removed its migrate listing button. 

    Coral Cube's tweet

    The aggregator platform further explained that when NFT creators list their digital assets on ME, they also transfer their creations’ ownership. Moreover, artists will now need ME’s signature to retrieve their NFTs. But what’s more concerning is that they can also be potentially locked out from their creations when they lose their API key, or sudden technical issues arise in the marketplace. 

    Magic Eden’s Envelopment Strategy Might Be the Reason

    Apart from its signature policy, Magic Eden is now also providing tooling for its users, which made a severe impact on its analytics solutions providers, especially Solsniper. This move heavily incentivizes ME users to use its built-in tools and stay within the platform instead of using third-party services. 

    In business terminologies, this move is called “envelopment strategy,” which involves combining one’s functionality into a competitor’s market. Standalone services are prone to this “attack” and often have no choice but to play by the rules of the business “attacker.” But while this decision gives ME a ton of leverage, it can potentially drag down builders’ confidence in the platform as it directly competes with its solutions providers. 

    ME Running Out of Lock-In Advantages 

    When Magic Eden launched, it almost had all the advantages of an NFT marketplace, including having the best platform and sought-after engineers. These were ideal pieces to wield a “lock-in effect,” where users would have no choice but to stay in the platform (rather than switching services) because of its advantages. 

    But today, with the rise of new competitors such as Yawww, Coral, and Hyperspace, the only lock-in power left for ME is its liquidity, which may explain the marketplace’s recent (and drastic moves) to protect itself from the growing competition. Despite ME’s aggressive moves, other platforms still have options to compete, such as paying NFT projects to be their launch partners, which can be an enticing offer for many NFT developers. 


    Join our newsletter as we build a community of AI and web3 pioneers.

    The next 3-5 years is when new industry titans will emerge, and we want you to be one of them.

    Benefits include:

    • Receive updates on the most significant trends
    • Receive crucial insights that will help you stay ahead in the tech world
    • The chance to be part of our OG community, which will have exclusive membership perks

    Subscribe to the Metaroids Newsletter

    * indicates required

    By signing up, you agree to our Privacy Policy agreement.
    Magic Eden NFT marketplace Solana
    Share. Facebook Twitter LinkedIn Email Reddit Telegram
    Damocles
    • Website
    • Twitter

    Damocles is a self-imposed web3 nomad with a background in journalism and education. Having served as a freelance writer for three years, he decided to focus on one area he loves: the blockchain industry. He enjoys the drama, controversies, and pleasant surprises of this growing arena, pumping him to write more daily. To this day, he still considers himself a newbie who is dead set on honing his skills and being more involved in web3 projects.

    Related Posts

    Retrieval Augmented Generation to Replace Google Search, Not ChatGPT

    January 30, 2023

    OpenAI Hired Developers to Train AI to Replace Developers

    January 28, 2023

    Ex-Google SVP Launched AI-Powered Search Engine

    January 28, 2023

    BuzzFeed Plans to ‘Hire’ ChatGPT as Newest Content Creator

    January 28, 2023
    Add A Comment

    Comments are closed.

    Latest Articles
    News

    OpenAI Hired Developers to Train AI to Replace Developers

    By Evan Ezquer
    News

    Ex-Google SVP Launched AI-Powered Search Engine

    By Stark
    News

    BuzzFeed Plans to ‘Hire’ ChatGPT as Newest Content Creator

    By Damocles
    Metaroids
    Twitter
    • Home
    • About
    • Contact
    • Our Authors
    • Privacy Policy
    • Sitemap
    Privacy Policy and Terms of Services
    Copyright © 2023 - All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.