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Magic Eden partners with MoonPay amid layoffs

TL;DR

  • Magic Eden’s partnership with MoonPay intends to simplify acquiring digital assets
  • Magic Eden lays off 22 employees amid restructuring plans
  • NFT marketplaces suffer the same fate as crypto exchanges as a result of the crypto winter

Magic Eden, a non-fungible token (NFT) marketplace, has partnered with Web3 payment provider MoonPay to provide new payment methods for purchasing digital items.

According to a press release, Magic Eden users can use a credit or debit card, Apple Pay, or Google Pay to purchase NFTs across chains. The strategic partnership’s purpose is to simplify the process of onboarding new users.

Magic Eden’s partnership with MoonPay set to offer credit card payments

One of the most common complaints in the crypto community is that the technology is difficult to use. Transferring cash from one location to another or purchasing an NFT often requires users to download a crypto wallet, which many find so difficult to access that they simply don’t bother.

As the ecosystem evolves, multiple major companies are attempting to relieve the problem by introducing new entry points or payment alternatives. For example, on Monday, MoonPay, a web3 infrastructure business, announced a partnership with Magic Eden, one of the largest NFT marketplaces, to make NFTs more accessible through old-school techniques.

Bree Blazak, vice president of worldwide sales at MoonPay, noted that the web3 ecosystem “benefits from an increasing number of active users that engage the technology.” Traditional payment methods enable non-crypto native people to participate in the space.

Zhuoxun Yin, COO and co-founder of Magic Eden, noted that navigating the web3 environment can be difficult for many consumers, hence:

That’s why we’re working closely with brands, creators, and ecosystem builders to integrate tools that make it easier for users to navigate web3 and bring new use cases for NFTs that will attract new users to the space […] Our goal is to make NFTs accessible to everyone, enabling individuals to own and control their digital assets.

Zhuoxun Yin

Yin added that Magic Eden is also developing training resources and content with partners to demystify the onboarding process. Moreover, it highlights areas of trust and safety that users should be aware of when it comes to self-custody and making certain NFT purchasing decisions.

MoonPay, which has processed about $3.5 billion in transactions in over 160 countries, will provide the NFT platform with multichain onboarding payment options. So, Magic Eden users may purchase NFTs using credit cards, debit cards, Apple Pay, Google Pay, and other methods.

This integration, according to Blazak, extends the universe of people who can buy these assets from the hundreds of millions who hold cryptocurrencies to the many billions who use debit and credit cards.

Magic Eden restructures and begins layoffs

Monday, Magic Eden stated it would be laying off 22 employees as part of a “company-wide restructuring.” In a tweet, the CEO and co-founder of the company, Jack Lu, indicated that the team needed to be restructured in order to achieve new targets in 2023.

DappRadar reports that upon its launch in September 2021, Magic Eden immediately became one of the most popular NFT marketplaces on the Solana blockchain. Magic Eden entered the Ethereum ecosystem in September 2022, adding support for Bored Ape Yacht Club, Pudgy Penguins, and Otherside.

Just fifteen months ago, we were searching for product-market fit on Solana. Since then, our business has grown significantly, and the nature of our challenges has evolved. Our focus areas for 2023 include growing traction across chains, developing services for NFT creators, and exploring new use cases like rewards and social experiences. As we established these priorities for the year, we had to take a hard look at what structure and roles are needed.

Jack Lu

In a letter published in the thread, Jack Lu states that in order to assist employees affected by the layoffs, Magic Eden will provide two months of severance pay, suspend the one-year vesting requirement for stock options, allow them to keep their computers, and continue to provide six months of healthcare.

The largest Solana-based NFT marketplace has suffered as the price of SOL has plummeted in the past year. In response, it has expanded support for Ethereum and Polygon-based NFTs in order to remain competitive with OpenSea and other marketplaces.

Late in the previous year, the company became entangled in the dispute over creator royalties and adopted a royalty-optional business strategy, causing a brief decline in trading volumes.

Several other NFT platforms have scaled back in recent months as the crypto winter continues to cool market activity. For example, SuperRare, an NFT marketplace, cut 30% of its workforce last month, while OpenSea laid off around 20% of its workforce in July 2022.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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