NFT Marketplace Magic Eden Secures $27 Million Series A

NFT Marketplace Magic Eden Secures $27 Million Series A

Magic Eden, a Solana-based NFT marketplace, announced a $27 million Series A funding round on Monday. The round was led by Paradigm with participation from Sequoia Capital, Electric Capital, Greylock Partners, Kindred Capital, Variant Fund and Solana Ventures.

The increase will go toward staff expansion, future partnerships and product development.

Jack Lu, CEO and co-founder of Magic Eden, told Blockworks that the funding “will help [them] expand as a company, including hiring the best talent, improving [their] product and infrastructure, and investing in community initiatives.”

These initiatives include MagicDAO, a recent attempt to create a decentralized autonomous organization (DAO) governed by the startup's NFT (non-fungible token) collection Magic Ticket. The project distributed 30,602 such tickets, which provide access to the group's Discord channels, to community members and plans to involve these members in governance decisions in the future.

Magic Eden has recorded over $736 million in total trading volume since its launch last year, establishing itself as the largest Solana marketplace, according to its data dashboard DappRadar.

However, trading volume for Magic Eden has fallen by 85.76% to around $41 million over the past month - mirroring the performance of the broader NFT market.

The trading and transaction volume of the NFT marketplace OpenSea also fell 22.4% and 11.61% each in the past month. Unlike Magic Eden, OpenSea auctions NFTs on Ethereum and Polygon.

Paradigm, which launched a $2.5 billion crypto fund last November, is also an investor in OpenSea. Benjamin Cohen, managing partner of crypto fund Web 3 Equities, previously told Blockworks that when a market is as fast as OpenSea, it's "reasonable to assume that [it] is going to see big swings and corrections."

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