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Magic Eden’s $5B Token Airdrop Raises Crypto Wallet Security Questions

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Early traders of NFT marketplace Magic Eden’s new token ME had a lot to be thankful for – if they could access their airdrops, that is.

In the first minutes of trading Tuesday, the token’s fully diluted valuation hit $15 billion. But as more claimants managed to process their airdrops – and in some lucky cases, sell – that valuation began to crater. It eventually settled at an FDV around $5 billion.

ME’s rocky rollout stood in sharp contrast to other recent token launches. Hyperliquid’s HYPE token immediately went parabolic after launching in late November. And Move’s days-old MOVE token had a far more stable rollout – even shooting up at times.

Some observers saw ME’s down-only price action as comeuppance for a crypto project whose airdrop processing procedure was highly atypical, and, according to three industry insiders, threatened to breach security best practices.

Magic Eden did not respond to CoinDesk’s questions.

Traders who managed to claim thousands of dollars-worth of ME publicly shunned anyone badmouthing their “free money.” Others bemoaned apparently getting their wallets drained while wading through Magic Eden’s convoluted process.

It was a mixed day for Solana’s best-known NFT trading platform, which has partly weathered the hollowing-out of crypto’s digital collectibles economy by supporting newer, flashier and more highly-traded NFTs on the Bitcoin blockchain too.

Security concerns

The same wallet issues that complicated ME’s launch also could threaten user privacy, according to one industry source who asked not to be named.

Magic Eden earmarked ME tokens for NFT traders as a reward for their past business. To get their airdrop, those traders had to either import the private keys from their qualifying wallets into Magic Eden’s wallet app or create a new wallet on Magic Eden’s app and link it to their old ones. The latter action potentially creates a privacy-busting link between previously unaffiliated wallets.

Usually, crypto apps are content to let their users claim airdrops within their wallet of preference. Of course, most apps don’t pair their token launch with an in-house wallet. The process doubtless boosted adoption of Magic Eden’s new wallet.

Nevertheless, CoinDesk found a number of atypical security practices within the Magic Eden wallet. It keeps a backup of users’ recovery phrases and private keys on-app with no clear route to delete that information. While this makes the service more user-friendly, it also goes against established norms in wallet design and security.

“It’s a very bad idea to store this stuff” anywhere digitally, be it locally on one’s own device or – even worse – remotely on a company’s servers, said Ogle, a pseudonymous crypto-security sleuth. It’s not clear exactly where Magic Eden is storing the wallet recovery information.

The process also opened up airdrop claimants to attack from bad actors who might pretend to be Magic Eden.

Wallets created within Magic Eden’s app cannot easily be transferred to other wallet applications. CoinDesk attempted to recover a Magic Eden-created wallet on Phantom by using the Magic Eden-provided 12-word recovery phrase. This process resulted in the control of a completely different address.

An industry source said it had to do with Magic Eden’s reliance on a different tech setup than other leading wallets. It can be overcome by importing the private key, which is nestled deeper in Magic Eden’s app settings.

Not-so-savvy users might attempt to move their Magic Eden wallets to a different app using the 12 word recovery phrase alone.

“They are not going to be finding any money in there,” the insider said, predicting such users would panic, and perhaps incorrectly assume their money was gone for good.





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Shiba Inu Exec Shares Vital Updates On SHIFU Coin Airdrop, Here’s All

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Shiba Inu’s marketing lead Lucie sparked a flurry of discussions across the broader market on Wednesday, revealing vital updates on the SHIFU coin airdrop. Notably, the marketing lead revealed key opportunities for LEASH and BONE holders as the airdrop approaches while also highlighting the benefits for SHIB gamers and NFT enthusiasts in light of the looming airdrop. Here’s a brief report on some of the key details highlighted by Lucie regarding the airdrop in a recent social media post on X.

Shiba Inu’s Lucie Highlights Key Details On SHIFU Coin Airdrop

According to Lucie’s X post on December 11, the SHIFU airdrop is primed to mark a milestone for the Shiba Inu community. Notably, this optimistic statement is primarily attributable to token allocations in the upcoming airdrop, which are specially tailored to benefit LEASH and BONE holders, SHIB gamers, and NFT enthusiasts in the meme coin’s community.

First off, Lucie revealed that the upcoming airdrop will reward LEASH holders based on their token holdings. “Hold 0.01 LEASH for every 1 allocation slot,” the marketing lead added. Intriguingly, both staked and unstaked LEASH holders remain eligible to partake in the allocation. Further, the announcement revealed that tokens on both Ethereum and Shibarium networks qualify. A snapshot date will be announced shortly ahead, offering a clear view of eligibility.

Simultaneously, in a thread shared along her post, the marketing lead also highlighted airdrop opportunities for BONE holders. Holding 1 BONE allows for every 1 allocation slot, the announcement revealed. Similar to LEASH, both staked and unstaked BONE tokens are eligible for partaking in the endeavor. Moreover, tokens on Ethereum and Shibarium qualify whilst the snapshot date announcement remains imminent.

Also, SHIB gamers, primarily in games like Shiba Eternity and Agent Shibosh, remain primed to leverage this opportunity. Per Lucie, 1 game point earned will offer participants 1 SHIFU point. The total points earned will determine the airdrop allocation, whereas the snapshot date for the same is to be announced shortly ahead.

Lastly, the community’s NFT holders will benefit from the upcoming airdrop. Holding 1 Sheboshi NFT will offer 1 allocation slot. Further, holding 1 Shiboshis NFT will offer 5 allocation slots.

Altogether, the upcoming airdrop appears to be highly beneficial for the Shiba Inu community members. Notably, the coin’s lead developer, Shytoshi Kusama, also highlighted the SHIFU coin launch earlier this month, adding to investor curiosity on the matter.

How is SHIB Performing?

Meanwhile, SHIB price gained nearly 4% intraday and is currently trading at $0.00002806. Its intraday low and high were $0.00002434 and $0.00002838 at the time of reporting. Notably, the coin rises in tandem with soaring optimism amid recent community developments.

Also, it’s noteworthy that the Shiba Inu burn saga has further supported the coin’s upside momentum. CoinGape reported the meme token’s burn rate to have substantially reduced the circulating supply, aligning with the recent upside movement. Crypto market traders and investors continue to eye the coin as optimistic ecosystem advancements unfold.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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SynFutures announces F token airdrop

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SynFutures, a decentralized exchange for perpetual derivatives trading on Base, has introduced SynFutures Foundation and announced an airdrop of its native token, F.

The SynFutures Foundation will collaborate with the community to oversee the DEX platform’s development and secure key partnerships. As a community-led governance initiative, the foundation aims to ensure the success of grants, project collaborations, and funding programs.

The F token is an Ethereum (ETH)-based mainnet asset, will grant holders governance rights, staking rewards, and fee discounts. The airdrop will distribute 10 billion F tokens to the community, with additional airdrops planned in the future.

SynFutures noted in a press release that the airdrop will benefit the community, the DEX’s backers and advisors, the foundation treasury, and core contributors. F is also reserved for liquidity and protocol development.

The community will receive 28.5% of the total F token supply, with 7.5% available for distribution during the Season 1 Airdrop on December 6, 2024. Eligible participants include users who have interacted consistently with SynFutures from v1 to v3.

Several crypto exchanges, including Bybit, Gate.io, Bitget, and KuCoin, have expressed support for the F token airdrop. Bybit will host a launchpool initiative between Dec. 2 and Dec. 5, allowing participants to earn F ahead of its listing. Gate.io is offering a similar program with 75,000 F tokens available.

SynFutures is backed by prominent venture capital platforms such as Pantera, Dragonfly, Polychain, Standard Crypto, and SIG.

The platform recently unveiled a Perp Launchpad, offering a $1 million grant to support tokens deemed under the radar. In September, SynFutures rolled out two perpertual contracts with 10x leverage that allowed traders to bet on the U.S. election.



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DOGS pre-market price hints at $550 million FDV on launch: Bitget

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Before the DOGS listing on Aug. 23, Bitget recorded over $4 million in pre-marketing trading for the Telegram-based TON memecoin.

Pre-marketing trading is becoming increasingly popular in the crypto space. Platforms list derivatives of yet-to-launch tokens, allowing speculative investors to trade ahead of the main listing. DOGS has enjoyed similar hype, with several platforms like Bitget, KuCoin, and Gate launching pre-market products for the coin.

Volumes nearly surpassed $4 million in Tether (USDT) on Bitget alone, a Bitget representative told crypto.news via email on Aug. 19. Many believe the token may instantly achieve a $550 million fully diluted valuation at launch. On Bitget’s pre-market facility and other venues, DOGS traded for less than a cent and around $0.001.

Meanwhile, BinanceDog On Sol (DOGS) defied a broad market dip, surging over 60% as airdrop activity spiked. The coin should not be confused with the TON-based DOGS.

DOGS pre-market price hints at $550 million FDV on launch: Bitget - 1
BinanceDog on Sol coin pumps on TON-based DOGS hype | Source: CoinMarketCap

Over 6m verified DOGS users claim 30% of 440b airdrop

According to the DOGS community on Telegram, more than six million verified mini-app users have requested to receive the airdrop via supported exchanges. Telegram’s in-built wallet app is primarily focused on The Open Network (TON).

Claimants have until 6 pm UTC on Aug. 21 to queue for airdrop deposits on exchanges and the Telegram Wallet. DOGS has set an 8 am UTC deadline on Aug. 23 for non-custodial wallet claims, with the token scheduled to be listed by noon UTC on the same day.

DOGS is a mini-app token inspired by Spotty, a mascot created by Telegram founder Pavel Durov. The project launched last month and has gathered over 53 million users, of which 42.2 million are eligible for the airdrop.

Just shy of 82% of the 550 billion DOGS token supply was allocated to users, with 10% earmarked for the team and future updates. A 12-month lockup period means the project can’t liquidate tokens until August 2025. Additionally, 8.5% was reserved for liquidity purposes.

DOGS is one of many TON-powered Telegram mini-games making waves in the web3 industry. Projects like Notcoin (NOT) distributed billions to early users, and other teams like Hamster Kombat have vowed to deliver “the largest airdrop in crypto history.”



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