Magic Eden, once one of the most popular NFT marketplaces, is winding down its Ethereum and Bitcoin NFT operations as it pivots toward crypto gambling.
CEO Jack Lu announced that support for Ethereum Virtual Machine and Bitcoin-based Runes and Ordinals marketplaces will end in March. The platform will also shut down its Bitcoin API and crypto wallet services in the following weeks. Its NFT buyback program is also being discontinued.
The company is now doubling down on Dicey, its online casino and sportsbook platform. Lu said Dicey’s closed beta has already seen 200 users wager more than $15 million in just two months. He believes there is a “massive opportunity” in iGaming, where finance and entertainment increasingly overlap.
NFT packs, which combine random NFTs in a manner akin to actual trading card packs, will still be available from Magic Eden. However, amid the broader cryptocurrency decline, the NFT market has suffered. Due to declining sales and decreasing demand, several significant firms have scaled back their operations.
According to Lu, 80% of the company’s costs were tied to products generating only 20% of revenue. By cutting underperforming segments, Magic Eden aims to return to profitability and focus on long-term growth in crypto entertainment.
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