Magic Eden, largest Solana-based NFT platform, makes royalty fees optional

Magic Eden, largest Solana-based NFT platform, makes royalty fees optional

The platform said the move was in line with growing market trends, but some are concerned about what it means for the industry.

Magic Eden, the largest non-fungible token (NFT) marketplace in the Solana ecosystem, has moved to make paying NFT creator royalty fees optional, following in the footsteps of rival marketplaces which have eaten into its market share in recent months.

The platform will also be waiving all platform fees for the foreseeable future, Magic Eden said in a Twitter thread announcing the changes on Saturday.

Anndy Lian, author of the new book “NFT: From Zero to Hero,” told Forkast the attempt to win back users by lowering or removing fees surprised him as he was doubtful of the long-term sustainability of the plan.

“For [an] NFT platform, where the secondary market is at a really bad situation right now, I am doubtful whether the zero fees are going to work very well,” he said.

NFT royalties give the original creator a percentage of the sale price each time that NFT creation is sold.

Magic Eden is a giant in the Solana ecosystem, controlling roughly 90% of all sales, and almost nine times the Solana sales of leading NFT marketplace OpenSea, which added support for Solana NFTs in April 2022.

Magic Eden also raised US$130 in series B fundraising in June, bringing its valuation to US$1.6 billion, and cementing its status as a “unicorn,” a privately held start-up with a valuation over US$1 billion.

“This is not a decision we take lightly,” Magic Eden said in a tweet announcing the move, while also acknowledging the industry has been slowly moving towards optional creator royalties for a while. “We understand this move has serious implications for the ecosystem. We also hope it is not a permanent decision.”

Royalties for NFTs are typically set to between 5% and 10% and are often encoded into the smart contract of the NFT itself. Marketplaces are able to rework the code around the sales of these NFTs, however, effectively allowing them to set the fees to whatever they like.

In the case of Magic Eden now, that fee now will be left up to the user to decide whether or not to pay. However, if users choose not to pay the fee, they risk being excluded from the full utility or perks of owning the NFT, the platform warned.

Removing this structure incentivizes creators to lift their prices in order to compensate for this loss of income, he said, which could add extra pressure to an already struggling market that is currently extremely sensitive to pricing.

The issue is compounded if smaller marketplaces follow Magic Eden’s lead, which Lian said they will be incentivized to do.

“So, it goes back to the whole equation: How long is this bear market going to be and how long can you sustain that kind of strategy?” Lian said, “If I’m not wrong, maybe [Magic Eden] can for the next two, three, four years, maybe. But I’m not so sure about the rest.”

Lian explained this was being done to artificially increase an NFT’s trading volume to give the impression it is more highly sought-after than it actually is. This not only discredits the industry but deceives unwitting buyers into potentially paying inflated prices for NFTs.

The issue has become so prevalent on Magic Eden in the few days since fees were removed that OpenSea has since announced it is in the process of temporarily blocking Solana collections from the Top and Trending list on its homepage to avoid “gaming” those numbers.

Secondary monthly NFT sales in September were only US$550 million, an almost 90% decrease from its high in January 2022. NFT creators, marketplaces and collectors alike have had to make difficult choices about how to respond to the difficult market conditions.

“There’s a lot of uncertainty. Based on the current charts, we should still be going down or going sideways for the next quarter or so,” he said.

 

Source: Magic Eden, largest Solana-based NFT platform, makes royalty fees optional (forkast.news)

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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SudoRare shuts shop, makes off with 519 ETH

SudoRare shuts shop, makes off with 519 ETH

Before any investment, you got to DYOR “Do your own research”. The Sudorare team is fully anonymous and not doxxed anywhere. This is what I warned my community on 18 August 2022 when they came to me about investing in them.

This is not a one-off case. If you remember, Frosties freeze rug pull nets 335 ETH. Big Daddy Ape Club also took around the same amount at 9,136 SOL for NFTs that did not even exist. Evil Ape dupes the Evolved Apes NFT community managed to rug 798 ETH from project investors just one week after the collection’s launch. Their social media and website were also gone almost immediately.

SudoRare’s social media is gone. I cannot find their Twitter and Discord anymore. I would suggest those who have used their wallets on them to revoke your access.

– Anndy Lian, author of the new book NFT: From Zero to Hero, in an interview

 

SudoRare shuts shop, makes off with 519 ETH

SudoRare, an automated-market maker protocol, shut its services and social media accounts and made away with 519 Ether (ETH) worth about $815,000, according to blockchain investigator Peckshield.

A member of the crypto community was the first to draw attention to a suspicious transaction that used LooksRare (LOOKS) and USD Coin (USDC) tokens to siphon a sizable amount of money from SudoRare.

Peckshield then put out an alert about the rug pull of 519 ETH and the diversion of the stolen funds to three new addresses. SudoRare also deleted its social media accounts and all of its services.
Anndy Lian, chief digital advisor for the Mongolian Productivity Organization, said the incident once again highlighted the need for investors to do their own research before making investments in shady projects.

“The SudoRare team is fully anonymous and not doxxed anywhere. This is what I had warned my community on August 18, 2022, when they came to me about investing in them,” he said.

Evil Ape duped the Evolved Apes NFT community in October 2021 and managed to rug pull 798 ETH from investors one week after the collection’s launch. Their social media and website were also gone almost immediately.

Crypto scams

Over $7 billion was stolen in cryptocurrency scams in 2021, according to a report from Chainalysis. This represents an 81 percent rise from figures in 2020.

In 2021, rug pulls accounted for over $2.8 billion stolen, or 37 percent of all cryptocurrency scam revenue. This is a significant increase compared to 1 percent in 2020.

 

Original Source: https://www.moneycontrol.com/news/business/sudorare-shuts-shop-makes-off-with-519-eth-9075501.html

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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