- Magic Eden will end support for its Ethereum, Bitcoin, and wallet services by early April.
- The platform is pivoting from most NFT offerings to focus on its new online casino, Dicey, and NFT packs.
- CEO Jack Lu cited unprofitable products, stating 80% of costs were tied to just 20% of revenue.
Magic Eden, a once-dominant NFT marketplace, is dramatically shifting its business model away from digital collectibles to embrace online gambling, according to a statement from CEO Jack Lu. The platform will wind down support for its Ethereum and Bitcoin-based marketplaces, along with its crypto wallet and NFT buyback program, throughout March and April. Consequently, the company plans to exclusively focus on its “crypto entertainment” venture, Dicey, which is currently in a closed beta.
In an X post on Friday, Lu explained the strategic refocus was driven by financial inefficiency. “80% of our cost are tied to products generating only 20% of our revenue,” he stated. Meanwhile, the two-month-old Dicey platform has already seen 200 users wager over $15 million, which Lu called a “massive opportunity” in iGaming.
The move reflects broader challenges in the NFT sector, which has seen a significant downturn from its 2021 peak. However, Magic Eden will retain its Solana NFT marketplace and shift its remaining collectibles business toward NFT packs. This pivot underscores how some crypto-native firms are adapting to changing market demands and revenue streams.
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