Magic Eden has shifted its focus from NFTs to the casino platform.
Magic Eden is moving resources from NFTs to its casino platform Dec. 15, after a closed beta saw $15 million held by 200 users in two months.
Solana-based virtual token (NFT) marketplace Magic Eden is expanding its Ethereum and Bitcoin NFT operations as it moves to online casino and sportsbook platform Dice.
In a post on X, CEO and co-founder Jack Lu said support for the Ethereum Virtual Machine (EVM) and Bitcoin-based Runes and Ordinals marketplaces will end on March 9, followed by the Bitcoin API on March 27 and its Bitcoin wallet on April 1.
He added that the platform will end its NFT return program and “double down” in December, saying there is a “huge opportunity” in iGaming, or online gambling.
“It's clear that we're entering a new era where finance and entertainment are converging,” Lu said of December's two-month closed beta, which saw 200 users pay more than $15 million, “and it was incredibly bullish.”
Dicey offers a chain casino and plans to launch a sportsbook in a similar fashion to other gambling sites such as Stack.
Magic Eden cutting NFTs to lead to gambling
The changes will significantly reduce Magic Eden's focus on NFTs, one of the most popular NFT marketplaces.
According to Lu, the platform will “uniquely” focus on NFT bundles, which bundle random NFTs from different collections similar to physical trading card bundles.
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According to Lu, the transition ultimately led to the majority of platform products not contributing significantly to revenues.
“80% of our costs are associated with products that generate 20% of our revenue. By eliminating these products, we focus on our Solana roots.” [and] Keeping our most profitable products, betting on crypto entertainment and positioning our products for long-term growth.
The NFT market has been heavily impacted by the broader crypto market downturn over the past few months, with major players such as Nifty Gateway announcing its shutdown in January.
In early February, the total NFT market cap fell below $1.5 billion, returning to levels not seen before the 2021 boom.
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