NFT platform Magic Eden has announced a surprising decision by temporarily suspending Bitcoin BRC-20 trading on its platform.
Magic Eden, an NFT marketplace built on the Solana blockchain, is known for being a community-focused platform that has been operational since September 2021.
It has recently made the decision to stop trading in BRC-20. The platform has emphasized that this suspension will not affect other trading activities on its platform.
Magic Eden’s decision is based on the need to protect its users until complete consensus is achieved regarding all BRC-20.
We’ve temporarily paused BRC-20 trading to best protect users until full ord consensus across all BRC-20
All other trading remains live on Magic Eden in the meantime!
— Magic Eden on Bitcoin 🟧 (@MEonBTC) October 22, 2023
The platform’s official notification explicitly mentions that this measure is temporary and that other forms of trading on Magic Eden will continue to function normally.
The news has left the crypto community wondering about the reasons behind this suspension.
WHY HAS MAGIC EDEN TAKEN THIS MEASURE?
Some experts have speculated about the possible reasons behind this decision. One of the reasons that has been mentioned is the reduction of activity in BRC-20.
According to cryptocurrency expert Colin Wu, activity on BRC-20 has decreased significantly, with the daily number of transactions accounting for less than 3% of transactions on the Bitcoin blockchain according to official data pulled from Dune.
Magic Eden announced that it will temporarily pause Bitcoin BRC-20 trading to best protect users until full ord consensus across all BRC-20.
Since the finishing of sats mint, BRC-20 activity has dropped significantly, and the number of daily transactions accounts for less than…
— Wu Blockchain (@WuBlockchain) October 22, 2023
This decrease in activity could have led Magic Eden to take this measure to protect its users.
Furthermore, it has been mentioned that competition, particularly from RUNE, a Bitcoin UTXO protocol, could have influenced Magic Eden’s decision.
RUNE has been presented as an alternative to BRC-20, and its introduction could have raised concerns about the usefulness and security of BRC-20 in the cryptocurrency market.
The suspension of BRC-20 on Magic Eden has raised concerns among users regarding the security of their investments on the platform. Social networks and crypto forums have been filled with debates about this measure and its long-term implications.
In addition to these possible reasons, other challenges have been mentioned that could have influenced Magic Eden’s decision, such as smart contract vulnerabilities, scalability issues, and regulatory concerns.