Magic Eden temporarily suspends BRC-20 asset trading due to declining exchange volume
The suspension of BRC-20 token trading will not affect other activities on the platform.
This suspension aims to protect Magic Eden users.
Magic Eden, a non-fungible token (NFT) marketplace built on the Solana (SOL) network, has recently made the decision to temporarily suspend trading of BRC-20 assets.
According to the official announcement posted on Twitter, this decision was made to ‘protect users’ of the platform. The suspension of BRC-20 tokens will remain in effect until ‘complete consensus’ is reached for these particular assets.
However, Magic Eden has clarified that this decision will not impact other forms of trading on the platform, which will continue to operate normally.
For those who missed out, BRC-20 tokens are a new (experimental) standard of fungible assets that reside exclusively on the Bitcoin blockchain. Their creation was made possible through the Ordinals protocol. But unlike other token types, such as the ERC-20 standard, BRC-20 assets do not use smart contracts but rely on files stored directly on Bitcoin.
A short-lived success for BRC-20 tokens?
BRC-20 tokens were first introduced in March 2023 by someone named ‘Domo,’ and they quickly gained popularity in just a few months. This is why Magic Eden decided to introduce these assets on its marketplace.
However, while BRC-20 tokens were initially met with enthusiasm, it seems that the initial excitement has started to wane, at least for now. In fact, the majority of BRC-20 tokens are either projects with no real value or ‘memes coins.’
As a result, this has naturally led Magic Eden to make the bold decision to pause the trading of these assets, a measure that appears to be a direct response to the decrease in trading volume. Now, the question remains, how long will this suspension last, and more importantly, how will it impact the Ordinals protocol on Bitcoin?
