The NFT marketplace Magic Eden, once valued at $1.6 billion during the peak of the NFT boom, is making a bold move beyond digital collectibles. The Solana-based platform has acquired Slingshot Finance, a cross-chain cryptocurrency trading application, signaling its intent to directly compete with centralized exchanges.
This strategic acquisition marks a significant evolution in Magic Eden’s ecosystem, transforming it from a niche NFT marketplace into a comprehensive, multi-chain crypto trading hub.
A Strategic Bet on Token Trading
Jack Lu, CEO of Magic Eden, described the acquisition as “a major bet on the token trading space.” Slingshot brings advanced chain abstraction technology that enables seamless trading across more than 10 blockchains—including Solana, Ethereum, and the upcoming Bitcoin integration—without requiring users to manage bridges, gas fees, or complex approval workflows.
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“Slingshot allows people to trade millions of tokens effortlessly,” Lu told The Block, emphasizing that the integration will support over 50,000 tokens and dramatically expand Magic Eden’s utility.
By absorbing Slingshot’s technology and user base, Magic Eden is positioning itself as a full-stack Web3 platform capable of serving both NFT enthusiasts and active crypto traders.
Strengthening the Full-Chain Experience
Slingshot’s user-friendly interface and robust cross-chain infrastructure offer what many DeFi platforms lack: simplicity without sacrificing functionality. With approximately one million users and backing from top-tier investors like Coinbase Ventures, Ribbit Capital, and Electric Capital, Slingshot has already proven its market fit.
Now integrated into Magic Eden, these capabilities unlock a “full-chain” experience—enabling users to swap tokens across ecosystems with minimal friction. This leap forward aligns perfectly with Magic Eden’s vision of becoming a unified gateway for all digital assets.
Even as the NFT market has cooled since its 2021 highs, Magic Eden remains committed. The platform generated $75 million in revenue in 2023 alone. Lu remains confident in the long-term potential of NFTs, believing the industry is still in its infancy and awaiting a breakout moment driven not by speculation, but by real-world utility.
“The next chapter of NFTs will be driven by actual use cases—gaming, collectibles, and digital identity—not just hype,” said Lu.
Why Now? Market Timing and Regulatory Shifts
The timing of this acquisition is no accident. As centralized exchanges face increasing regulatory scrutiny worldwide, traders are actively seeking decentralized alternatives that offer greater control and transparency. Magic Eden sees this shift as a prime opportunity to scale its services beyond NFTs.
With Slingshot’s team—numbering between 11 and 50 members—joining Magic Eden in full, the combined expertise strengthens the platform’s engineering and product development capacity. Notably, Slingshot co-founder Clinton Bembry is no stranger to successful exits; his previous venture, Astro Wallet, was acquired by Coinbase in 2019.
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While financial terms of the deal were not disclosed, the move underscores Magic Eden’s ambition to build an all-in-one Web3 super app. The company has raised $147 million from prominent investors like Paradigm and Sequoia and launched its native token last year. Currently trading around $0.82, the token saw a modest uptick following news of the acquisition.
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Frequently Asked Questions (FAQ)
What is Magic Eden's new focus after acquiring Slingshot?
Magic Eden is expanding beyond NFTs to become a full-service decentralized trading platform. With Slingshot’s cross-chain technology, it now supports seamless token swaps across multiple blockchains, positioning itself as a competitor to centralized exchanges.
How does Slingshot enable cross-chain trading without bridges?
Slingshot uses chain abstraction technology to hide the complexity of blockchain interactions. Users can trade assets across chains without manually handling gas fees, approvals, or bridge protocols—making DeFi accessible even to beginners.
Will Magic Eden continue supporting NFTs?
Yes. Despite expanding into token trading, Magic Eden remains committed to the NFT ecosystem. It generated $75 million in NFT-related revenue in 2023 and continues to invest in utility-driven use cases like gaming and digital identity.
Who owns Slingshot now?
Slingshot Finance has been fully acquired by Magic Eden. All team members have joined Magic Eden, ensuring continuity in product development and technical innovation.
Is Magic Eden launching a new token?
No new token is being launched. Magic Eden previously released its native token in 2023, which currently trades around $0.82. The acquisition is expected to enhance the token’s utility within the broader ecosystem.
Can I use Magic Eden to trade Bitcoin?
While direct Bitcoin trading isn’t live yet, Magic Eden confirmed that Bitcoin integration is “coming soon” via Slingshot’s infrastructure. This will allow users to access BTC-related trading pairs across supported chains.
The Road Ahead: Building a Unified Web3 Gateway
Lu emphasized that Magic Eden doesn’t plan large-scale hiring post-acquisition. Instead, growth will come through strategic integrations and product expansion. The goal? To offer every service available on global exchanges—deposits, swaps, staking, lending—and deliver it all through a decentralized, user-first interface.
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“This is just the beginning,” Lu said. “Any product offered by a global exchange—we want to provide it.”
As Web3 adoption accelerates and users demand more integrated experiences, Magic Eden’s pivot could set a new standard for what a decentralized platform can achieve. By combining NFT leadership with powerful trading tools, it’s building the infrastructure for a truly open financial system.
With strong funding, experienced teams, and a clear vision for utility-driven growth, Magic Eden is no longer just an NFT marketplace—it’s emerging as a major player in the future of decentralized finance.