The offering of non-fungible tokens (NFTs) through the Magic Eden platform will undergo a major change for the listing of new collections. After suffering two recent scams, the marketplace built on the Solana network has decided to implement new rules to prevent other rug pulls.
To guarantee more security and transparency in the development and commercialization of NFTs, Magic Eden implemented a KYC registration system with data from users who wish to launch token collections on the platform.
Thus, with information from the creators of NFTs collections, Magic Eden hopes to offer more security and avoid scams known as rug pulls, when the user abandons the project running away with the amount collected in cryptoassets.
Considered the largest trading platform for non-fungible tokens on the Solana network, Magic Eden has halted the launch of new collections of NFTs after a project stole about 5 thousand solana units (SOL).
For two weeks, the non-fungible token platform has suspended the launch of new projects until it releases new rules to prevent scams. Before that, the “Balloonsville” collection of NFTs was responsible for running a US$ 600,000 scam on solana.
In addition to the scam that stole 5 thousand solana recently, Magic Eden suffered another fraud related to releasing a supposed chess game called “King of Chess”.
With a collection of NFTs launched on Solana’s platform, the fraudulent game racked up 645 solana units in 2021, valued at US$ 58,000. These two scams caused Magic Eden to modify the launchpad on the platform, providing more security against scams.