Key Highlights
- Jack Lu says crypto is entering a “speculation supercycle” where finance, gaming, and entertainment are coming together.
- Magic Eden will send 15% of its revenue to the ME ecosystem through buybacks and USDC rewards for stakers, under new buyback plans.
- Magic Eden is moving beyond NFTs and plans to launch Dicey, a new crypto casino and sportsbook platform.
Magic Eden’s CEO and Co-Founder Jack Lu, has announced a new variant in their token buyback program; they will split 15% of their revenue within straight buybacks and USDC yield. He also stated that the crypto industry is moving into what he describes as a “speculation supercycle,” where finance, gaming, and entertainment increasingly blend.
“Prediction markets are all over Emmys and the news. Betting is the second fastest growing industry in the US after AI,” Lu emphasized. “Sportsbook sponsorships are all over everyone’s favorite sports broadcasts. Hyper casual games + real-money gaming are converging.”
The comment came at a time when prediction markets hit record activity, with $814.2 million in trades placed in a single day across platforms such as Kalshi and Polymarket, according to Dune Analytics.
Revenue sharing changes
Lu’s X post highlighted Magic Eden’s announcement on changes to the protocol’s buyback program. Starting February 1, the firm said 15% of all revenue from its products will be directed into the ME token ecosystem. Half of that amount will go toward token buybacks, while the other half will be distributed as USDC rewards to users who stake ME tokens.
The company said the new system replaces its earlier marketplace-only buyback program and expands revenue sharing across the broader business.
Staking rewards will depend on both the amount of ME staked and how long it is held. USDC rewards are expected to be claimable monthly, with the first claims opening in March for February revenue.
Magic Eden’s shift beyond NFTs
Lu said Magic Eden’s product roadmap reflects this change in user behavior. The company first built its name around non-fungible tokens (NFTs), which he described as “fun and degen ways to trade and collect.”
Since then, Magic Eden has added new products such as Lucky Buy and digital packs tied to tokenized collectibles, aimed at attracting a wider group of collectors and speculators.
He also confirmed that Magic Eden plans to launch a new crypto casino and sportsbook platform called Dicey later this quarter. According to Lu, the platform is designed to allow users to create games, place wagers, and interact socially in a decentralized environment, as the company expands further into gaming and prediction-style products.
The shift following market downtrend
The announcement follows a sharp downturn in the NFT market last year. CoinGecko data shows the total NFT market capitalization fell 68% in 2025, dropping from about $7.95 billion to $2.5 billion, before showing early signs of recovery in 2026.
Despite the slowdown, Lu said Magic Eden generated about $24 million in revenue last year, describing the marketplace business as healthy even during weaker market conditions.
Magic Eden said the changes reflect shifting trends in the crypto industry. “Cycles change. Narratives shift. Revenue is real,” the company said.
Also Read: NYSE Prepares Tokenized Platform As 24/7 Trading Moves Closer
