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Preparing for SEC Subpoena? Magic Eden Splits into International and U.S. Platforms

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Preparing for SEC Subpoena? Magic Eden Splits into International and U.S. Platforms

One of the world's largest NFT markets, OpenSea, recently faced a securities investigation by the U.S. Securities and Exchange Commission (SEC), while Magic Eden coincidentally announced its shift to a dual-platform at this time. Is this move in response to potential regulatory risks?

How will OpenSea counter the SEC? Unfair investigations should be equally applied to major brands like Disney.

Magic Eden Splits into International and U.S. Platforms

Magic Eden has announced that it will be divided into two versions: international and U.S., with the U.S. version closely resembling the previous platform:

According to its user terms, the U.S. version restricts users from the U.S. sanctions list and prohibits the use of VPNs, with the platform reserving the right to monitor service access locations.

The international version restricts sanctions lists from various governments.

User Terms for U.S. Version

OpenSea Receives Subpoena, Is Magic Eden Next?

OpenSea, one of the world's largest NFT marketplaces, recently faced a securities investigation from the U.S. Securities and Exchange Commission (SEC). CEO Devin Finzer expressed shock and disappointment upon receiving the SEC notice, calling it a significant attack on the NFT ecosystem.

This typically signals the precursor to formal enforcement action. The notice indicates that the SEC believes some NFTs on the OpenSea platform may be classified as securities, hence requiring regulatory scrutiny.

With Magic Eden coincidentally announcing its shift to a dual-platform approach, one may wonder if there is a connection.

OpenSea CEO Responds to SEC Securities Investigation, Allocates $5 Million to Protect NFT Creators

Magic Eden Emerges as the Top Choice NFT Platform

According to a CoinGecko report, Magic Eden has claimed the top spot as the leading NFT trading platform this year, with a trading volume of $122.47 million in August, capturing a market share of 36.7%. Since March this year, it has held the top position for six months, surpassing the former leader Blur, while the once-dominant OpenSea now holds less than 20% market share.

The market shares in August are as follows:

  • Magic Eden: 36.68%

  • Blur: 25.37%

  • OpenSea: 19.92%

  • Tensor: 7.15%

  • CryptoPunks: 5.63%

  • OKX: 2.41%

However, Magic Eden ranks third in the Ethereum NFT market share:

  • Blur: 68.84%

  • OpenSea: 18.11%

  • Magic Eden: 6.13%

Monthly Market Share of NFT Platforms

Despite the downturn in the NFT market, Magic Eden's achievement of securing the top market share is commendable. In light of this success, the move towards compliance is a natural development, as indicated in the bio of the Magic Eden official Twitter account:

Tweets are only intended for non-U.S. residents.

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