Magic Eden Pivots to Gambling as CEO Bet on ‘Speculation Supercycle’
Magic Eden CEO Jack Lu announces ‘Dicey’ betting platform, betting on a ‘Speculation Supercycle’ as $ME token slides 10%.
Jack Lu calls speculation the new fundamental as NFT marketplace launches betting platform ‘Dicey’.
Magic Eden CEO Jack Lu stated on Monday that the crypto market is entering a “speculation supercycle,” signaling a major strategic pivot for the Solana-based platform. The announcement coincides with the reveal of Dicey, a crypto-native casino and prediction market, as the company moves to capture capital flowing into high-risk, entertainment-based finance.
The market reacted coldly. The native token $ME slid to $0.25 (-10%) in early Tuesday trading, continuing a steep decline from its post-launch highs.
Stepping back: we’re heading into a speculation supercycle, where finance merges with entertainment. Prediction markets are all over Emmys and the Super Bowl. Speculation is mainstream now. And Magic Eden is building for this world. Jack Lu
The Pivot: Survival or Evolution?
Lu’s thesis rests on a harsh reality: traditional NFT volumes are dead. The NFT market cap collapsed 68% in 2025, forcing infrastructure players to find new liquidity. Magic Eden’s answer is to institutionalize degenculture.
The data supports the “gambling thesis.” Prediction market volumes on platforms like Polymarket and Kalshi hit a record $814.2 million this week. By launching Dicey, Magic Eden attempts to convert its existing user base—already comfortable with high-volatility assets—into active bettors.
Tokenomics vs. Market Sentiment
To align incentives, Lu announced that 15% of all net revenue (including Dicey) would be funneled back to $ME stakers via buybacks and USDC yields starting in March. Despite the revenue-share model, the token remains under pressure, down over 20% on the weekly chart.
The disconnect suggests investors are wary of the execution risk. While the “Speculation Supercycle” narrative aligns with current on-chain behavior, pivoting from a creator-focused marketplace to a casino invites regulatory scrutiny and alienates the “art-first” cohort of their user base.
