$SOL: Solana’s Largest NFT Marketplace Responds to Critics Over Security Risks

$SOL: Solana’s Largest NFT Marketplace Responds to Critics Over Security Risks

Solana’s largest non-fungible token (NFT) marketplace Magic Eden recently responded to its critics.

Speaking with Decrypt, Magic Eden has pushed back on the growing list of criticisms over the platform’s security and custody practices.

Magic Eden, which launched last fall and now accounts for roughly 90% of Solana’s trading volume, was valued at $1.6 billion in a VC funding round in June. 

The platform has come under criticism by members in the Solana NFT community over its centralization. In particular, developers and users have griped over the platform’s limitation of third-party tools and the way the marketplace handles NFT custody. Some critics say the platform has security flaws that could put user assets at risk for an attack. 

“Marty”, the pseudonymous founder of Web3 studio Zion Labs told Decrypt that users should be made aware of the significant security risks:

People should be 100% aware that a hacker could get the keys to Magic Eden and ‘rug’ everyone of their NFTs. This wouldn’t happen if it was decentralized and if their code was open-source. 

Magic Eden responded to its critics, telling Decrypt that the marketplace intends to transition to an escrow-less system in the future. However, the NFT platform says that the current technology is not “secure enough yet.”

The report highlights a recent tweet thread by NFT marketplace OpenSea that attempts to explain why OpenSea, unlike Magic Eden, does not “require sellers to custody their listed NFTs.”

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