Magic Eden Acquires Slingshot to Enter Crypto Trading Arena

Magic Eden, once valued at $1.6 billion during the height of the NFT boom, is expanding beyond digital collectibles. The Solana-based NFT marketplace acquired Slingshot Finance, a cross-chain crypto trading app, in a move that allows the company to compete directly with centralized exchanges.

Magic Eden CEO Jack Lu called the acquisition a “big bet into the token trading space,” pointing to Slingshot’s advanced chain abstraction technology, which enables trading across over 10 blockchains—including Solana, Ethereum, and soon Bitcoin—without users needing to interact directly with bridges, gas fees, or complex approvals.

“Slingshot lets people trade millions of tokens with a seamless experience,” Lu told The Block, adding that the integration would support over 5 million tokens and greatly expand Magic Eden’s capabilities.

Although the NFT market has cooled, Magic Eden says it’s not backing away from the space. The platform still generated $75 million in revenue in 2023, and Lu remains confident in the long-term promise of NFTs. He believes the sector is in its early stages and is awaiting a breakthrough moment to attract new users—something he says will come from utility rather than speculation.

“The next chapter for NFTs will be driven by practical uses—gaming, collectibles, and digital identity—not just hype,” Lu said.

Slingshot’s integration brings advanced trading tools and an “all-chains” user experience, extending Magic Eden’s reach well beyond NFTs. The app, which has about one million users, was founded in 2020 and raised $33 million from investors including Coinbase Ventures, Ribbit Capital, and Electric Capital.

While financial terms of the deal were not disclosed, Lu confirmed the acquisition has been completed and includes Slingshot’s full team, which falls between 11 and 50 members. Slingshot co-founder Clinton Bembry also noted that this marks his second startup exit—his earlier project, Astro Wallet, was acquired by Coinbase in 2019.

Magic Eden, which raised $147 million from investors including Paradigm and Sequoia, launched its own token last December. The ME token is trading around $0.82, with a modest bump following the acquisition news.

Lu says the company isn’t planning a hiring spree post-acquisition, but the Slingshot deal is a strategic move to establish Magic Eden as more than just an NFT platform. With centralized exchanges facing regulatory pressure and traders exploring decentralized alternatives, Magic Eden sees an opening.

“Any product that a global exchange offers, we want to offer too,” Lu said. “This is just the beginning.”