The NFT marketplace may have created a new website for United States residents because of the recent regulatory crackdown on OpenSea.
Magic Eden, a prominent non-fungible token (NFT) marketplace, announced its plans to launch a separate domain for United States investors. This update was posted on X, revealing that the new website (magiceden.us) will cater to users based in the U.S. The firm noted that the international site (magiceden.io) will continue to roll out new features and innovations.
Possible Reason for US-Exclusive Domain
Recently, there have been regulatory tensions in the U.S., and decentralized finance (DeFi) platforms have not been excluded. For example, the Commodity Futures Trading Commission (CFTC) has charged Uniswap Labs with offering illegal transactions on its platform and ordered them to pay a $175,000 fine.
Last week, Magic Eden’s competitor, OpenSea, received a Wells notice from the U.S. Securities and Exchange Commission (SEC). This suggests that the regulatory body may also take legal action against rival platforms like Magic Eden, Rarible, and Nifty Gateway.
With all these legal developments in the country, Magic Eden’s new update might be a response to the growing regulatory pressure in the United States. The firm’s move may be to comply with the legal and regulatory requirements for digital assets like crypto and NFT marketplaces stipulated by the authorities.
Community Criticize New Announcement
The firm’s new update has resulted in a negative response from most community members. Users are voicing concerns on social media, particularly on X, about the limitations this new domain may impose. They fear that certain features, such as airdrops, will no longer be available to U.S. residents, effectively restricting their access to services.
Some also argued that Magic Eden is becoming too centralized. The community is pushing back against what they see as an overly restrictive move, clamoring for a more open approach that doesn’t segregate services based on geographical location.
Several companies have recently withdrawn from NFTs, suggesting a decline in interest or confidence in the tech. Artificial intelligence (AI) and Decentralized Physical Infrastructure Network (DePIN) projects seem to be the current trends in the crypto market.