In an advanced communication, the California-based non-fungible token (NFT) marketplace, Magic Eden, has indefinitely halted the buying and selling of the BRC-20 token. The announcement was conveyed in an October 22 X post explaining the need to safeguard the customer’s interest.
The X update revealed that the trading of the BRC-20 assets remains disabled until the Magic Eden community attained the complete consensus ordinance inscription in all the BRC-20-oriented assets.
Magic Eden Suspend BRC-20 Trading
The ordinance inscription was first incepted in 2021 after the Taproot upgrade that streamlined the Bitcoin transaction process. Unlike other digital tokens that rely on smart contracts, the BRC-20 assets depend on the ordinance inscription to operate effectively.
The suspension of the BRC-20 trading on the Magic Eden platform mirrors the preventive measures undertaken by Singaporean crypto exchange Bitget in June. The Bitget team suspended the withdrawal and deposit of BRC-20 tokens after the system failed to overcome node technical challenge.
In the report, the Magic team apologized for the inconveniences caused by the suspension of the BRC-20 token. However, the NFT marketplace assured the customers that the platform will continue supporting all other trading activities during the downtime.
Initially, Magic Eden launched the Bitcoin Ordinals in March of this year. During the launch, the Magic Eden team collaborated with 13 crypto and blockchain firms, including Taproot Wizard, Bitcoin Bandits, and Inscribed Pepes.
In an earlier report, the BRC-20 token was powered on the JavaScript Object Notation (JSON) ordinal inscription. The JSON technologies support the BRC-20 in minting new tokens and facilitating the token’s buying and selling.
Magic Eden Takes Preventive Measures to Protect the Users
The official launching of the launching of the BRC-20 tokens sparked a growing demand among Bitcoin enthusiasts. An earlier report demonstrated that the high demand for the BRC-20 enabled the Bitcoin miners to generate considerable revenue.
In Q2, the BRC-20 tokens generated revenue totaling $184 million. At the end of Q2, the BRC-20 token emerged as the most hyped token with a growing demand. The increased demand for the BRC-20 inspired fast-growing crypto firms, including Magic Eden, to list the token on its NFT marketplace.
Demand for BRC-20 Dwindles
A revisit of Dune Analytics September report indicates that investors engaged in 400,000 BRC-20 transactions. The Dune Analytics estimates revealed that total Bitcoin transactions constituted 60% of BRC-20 transactions.
The surge in BRC-20 transactions impacted the rise of Bitcoin transaction fees. In the meantime, the demand for the BRC-20 token has declined by 2%. Consecutively, the demand for the inscription ordinal has dropped by 6,000 in the past few months. The decline in demand for BRC-20 tokens and inscription ordinal has created speculation among the Bitcoin community.
Editorial credit: Maurice NORBERT / Shutterstock.com
All trademarks, logos, and images displayed on this site belong to their respective owners and have been utilized under the Fair Use Act. The materials on this site should not be interpreted as financial advice. When we incorporate content from other sites, we ensure each author receives proper attribution by providing a link to the original content. This site might maintain financial affiliations with a selection of the brands and firms mentioned herein. As a result, we may receive compensation if our readers opt to click on these links within our content and subsequently register for the products or services on offer. However, we neither represent nor endorse these services, brands, or companies. Therefore, any disputes that may arise with the mentioned brands or companies need to be directly addressed with the respective parties involved. We urge our readers to exercise their own judgement when clicking on links within our content and ultimately signing up for any products or services. The responsibility lies solely with them. Please read our full disclaimer and terms of use policy here.