Fast take:
The corporate will help buying and selling throughout hundreds of thousands of tokens, placing it able to rival fashionable centralised exchanges.
Regardless of the declining transaction volumes within the NFT sector, Magic Eden co-founder and CEO Jack Lu mentioned his firm stays “extremely bullish” on NFTs.
Lu mentioned Magic Eden generated $75 million in income final yr, including that the subsequent section of the NFT business will likely be pushed by usefulness.
Magic Eden has introduced the acquisition of the mobile-first on-chain buying and selling platform Slingshot. The acquisition is a part of the NFT platform’s enlargement technique and places it able to compete with centralised exchanges.
The corporate is seeking to increase its product choices past non-fungible tokens because it pushes into broader token buying and selling. This acquisition allows Magic Eden to help buying and selling throughout hundreds of thousands of tokens.
The announcement comes again on what regarded like a profitable yr for the corporate after registering $75 million in income in 2024. And despite the fact that NFT transaction volumes have fallen considerably, Magic Eden co-founder and CEO Jack Lu mentioned his firm stays “extremely bullish” on NFTs.
“The Slingshot acquisition is Magic Eden’s massive wager into the token buying and selling house,” Jack Lu, co-founder and CEO of Magic Eden, informed The Block. “Slingshot’s chain abstraction know-how lets individuals commerce hundreds of thousands of tokens on 10+ chains while not having to understand how blockchains work (e.g. bridging, gasoline tokens, approvals). These chains embrace Solana, Ethereum, Bitcoin (coming quickly) and lots of others. We imagine this know-how represents the way forward for all crypto buying and selling and can enable Magic Eden to compete instantly with centralized exchanges.”
In response to Lu, the present decline in NFT transaction volumes doesn’t signify an finish however an evolution.
“To us, NFTs are nonetheless of their early innings, and like every rising know-how, the trail to mainstream adoption contains waves of experimentation and refinement,” Lu mentioned. “They’re nonetheless a brand new digital primitive that may energy the way forward for gaming, artwork, collectibles, and many others.”
The Slingshot acquisition represents a major shift to a diversified class of belongings and in addition doubtlessly expands Magic Eden’s consumer base with its 1 million customers.
Although the small print of the acquisition weren’t disclosed, Lu confirmed the deal had already been accomplished, with no pending approvals.
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