Magic Eden, an NFT marketplace, has put in place new safety features to help prevent future scams. This comes after two weeks ago, two high-profile rug pulls scammed investors out of hundreds of thousands of dollars. Magic Eden’s safety feature includes the know-your-customer (KYC) requirements.
It should be noted that Magic Eden operates on the Solana blockchain. The platform has racked up 411,425 users and more than $704 million in trading volume since its launch in September 2021.
But recently, Magic Eden had to relook at its business processes because of the rug pulls by King of Chess and Balloonsville on its Launchpad platform. Now, Magic Eden has relaunched the Launchpad with improved and transparent vetting policies. The NFT marketplace’s team, in an official blog, said they have previously refunded and derugged projects because the policies were unclear and so were the community’s expectations.
With the relaunch, Magic Eden is making its policies clear and believes it will protect the quality of projects on the platform. However, it does not guarantee the outcome of any Launchpad project. The platform will only refund projects that rug within the escrow period after the completion of the mint. Magic Eden expects the projects to hold their funds in escrow for at least 24-hours. Funds will be returned from the escrow account to the users.
It will verify all Launchpad projects on two levels – safety signals and project quality signals. The projects will be evaluated by two members of Magic Eden’s business development team.