Users Slam NFT Marketplace Magic Eden After Domain Changes

Amidst the changes, users, particularly in the US, say that Magic Eden’s domain restructuring is a move to avoid a possible Wells Notice. This concern stems from the recent regulatory attack on New York-based NFT marketplace OpenSea.

In late August, the US Securities and Exchange Commission (SEC) issued a Wells Notice against OpenSea. As BeInCrypto reported, the regulator moved to classify NFTs as securities, with the marketplace’s co-founder and CEO, Devin Finzer, pushing back.

Given OpenSea’s heft in the NFT market, tension has arisen in the space, prompting players like Magic Eden to restructure. Other users in the US are concerned about a possible clampdown on Magic Eden, hence the move to separate businesses.

“Exactly, like just give it to us straight, why the smoke mirrors…if we’re supposed to have trust in these exchanges just say, US regulators are coming for us, we’re bouncing out, make your decisions accordingly,” one X user expressed.

Notably, the SEC continues to restrict services like airdrops, commonly offered by NFT projects, in the US by classifying all digital assets as securities. This was evident in the case involving Texas-based Beba LLC and the DeFi Education Fund (DEF).

Meanwhile, amid regulation woes, scams, and other reasons, the NFT boom is steadily dissipating. BeInCrypto reported that 96% of NFT projects are considered dead.