Magic Eden is a decentralized app built on the Solana blockchain that allows users to mint, buy, and sell NFTs. Its business model is based on a low fee structure and a simple, feature-rich, community-based interface.
Understanding Magic Eden’s business model
Magic Eden has experienced a meteoric rise in popularity since it was launched in September 2021. In an industry dominated by Ethereum-based NFT marketplaces, the Solana-based Magic Eden has somewhat of a competitive advantage.
The platform’s flat 2% transaction fee is popular with traders and the recent launch of prized tokens has only increased its appeal.
Magic Eden also describes itself as a community-centric company that works hard to be responsive to community needs and to serve the best interests of its collections.
To prove its commitment, it airdropped over 30,000 “Magic Tickets” to users which granted them access to a discord-based MagicDAO where P2P interconnectivity is delivered via social programs and rewards.
These programs include AMAs with top Solana members, artist networking events, and exclusive IRL events for members in New York and Los Angeles.
In addition to the modest transaction fee, NFT listing and offer (bid) fees are waived. Magic Eden also respects the royalties set by creators. This fair and equitable structure makes the platform popular with NFT creators and traders alike.
Magic Eden’s user experience
Magic Eden is often touted as one of the most user-friendly decentralized applications on the market.
The user interface is simple to navigate and there are multiple ways to search its system for popular NFT collections, launches, drops, projects, and auctions.
There is also a content hub for newbies where the fundamentals of NFTs, blockchain, and cryptocurrency are explained clearly and concisely.
The Magic Eden Launchpad offers full-service NFT minting for those who find the minting process confusing.
Co-founder Jack Yu once noted in an interview that Magic Eden was intentionally made to be simple to use and understand.
This, he believed, would allow artists to devote more energy toward creative output and be less concerned with the complexities of the tech underpinning their work.
- Magic Eden is a decentralized app built on the Solana blockchain that allows users to mint, buy, and sell NFTs. Its business model is based on a fair and reasonable fee structure and a simple but versatile interface.
- Magic Eden’s business model is also community-centric. Company representatives are responsive to community needs and serve the best interests of the platform’s collections.
- Magic Eden’s simple and intuitive user interface is another contributing factor to its success. Numerous features and support options allow artists to focus on what they do best and in the process, grow the platform.
Connected Business Concepts
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