What is Metaplex (MPLX)? Project and Token Analysis

Coin: Metaplex
Ticker: MPLX
Date Deployed: Tues Nov 29, 2022

Origin of the Project

Metaplex is a powerful platform that provides no-code tools for Solana users to easily create custom NFT marketplaces, attach metadata to both fungible and non-fungible tokens, and mint new NFT collections. Founded by Stephen Hess, Bartosz Lipinski, Austin Federa, and Nikhil Kumar, the team originally planned to develop a decentralized finance protocol on Solana. However, recognizing the rapidly growing potential of the NFT sector, they pivoted to create a solution that would empower users to manage NFT projects seamlessly in a web3 environment, eliminating the need for intermediaries.

The first version of Metaplex was rapidly built in under six weeks to debut at the 2021 Bitcoin Miami event. Despite initial challenges, such as the platform breaking during the launch of the “Degenerate Apes” NFT collection, this experience led to the creation of the Metaplex Candy Machine, a customizable smart contract designed for NFT launches. The success of Metaplex continued to grow, especially after Opensea announced Solana integration powered by Metaplex in early 2022, expanding the reach of Solana NFTs. Additionally, Magic Eden integrated the Metaplex Collection Standard, enhancing NFT authenticity verification with on-chain data. Metaplex has also made significant strides in philanthropy and funding, raising over $1 million in support of Ukraine and securing $46 million in a strategic funding round in January 2022, all while planning to expand NFT adoption across multiple blockchains.

Products

Metaplex Storefront:

A self-hostable NFT marketplace allowing users to create and sell NFTs via Metaplex contracts.
Provides a decentralized, customizable alternative to centralized marketplaces like Magic Eden.

Candy Machine v2:

An on-chain generative NFT distribution tool that streamlines minting and sales.
Introduces features like unpredictable mint index, whitelist support, Captcha for bot prevention, and support for larger collections.

Gumdrop:

A tool for low-cost Solana airdrops that uses off-chain redemption links.
Supports various token drops, including token airdrops and Candy Machine pre-sales, using a merkle tree for fast whitelist verification.

AuctionHouse:

An on-chain, escrow-less NFT sale program enabling seamless auctions and sales.
Simplifies the auction process by automating transactions and offering customizable sale parameters.

Sugar:

A simplified alternative to the Candy Machine v2 CLI, enhancing performance and usability for Solana NFT developers.
Offers better error handling, input validation, and a more user-friendly interface.

Hydra:

A “wallet of wallets” enabling large-scale fund distribution, tokenized royalties, and token membership.
Supports complex distribution needs within NFT and token ecosystems.

Amman:

A toolkit for testing Solana SDK libraries and apps with a local validator, enhancing the development experience.
Provides a reliable, fast, and offline environment for testing and deploying complex Solana programs.

Metaboss:

A comprehensive toolset for developers working within the Metaplex ecosystem.
Offers functions for decoding metadata, minting NFTs, taking snapshots of NFT holders, and updating metadata fields.

Should MPLX Be in Your Portfolio?

Before you decide whether or not to add MPLX to your portfolio, click here to scan the contract on Solsniffer. Solsniffer is the number one blockchain intelligence tool to detect security risks on Solana. Security risk analysis on Solana has never been easier, make sure to be aware of potential DeFi wallet scams and other crypto security concerns before investing.

Due Diligence Tips Before Investing or Trading MPLX

Analyzing MPLX as a token is important for understanding its potential. Review its whitepaper, community engagement, development team, and long-term roadmap. Is the project solving a real problem and has a clear plan for the token in its ecosystem?

Perform in-depth research before trading any Solana-related project, including MPLX. Understanding the project’s whitepaper, the use case, and the founding team’s goals will give you insight into the coin’s potential.

The orderbook can leave clues too, when there are more buy orders than sell orders, MPLX’s price is likely to rise, while an excess of sell orders could lead to a price drop. It can also help identify past market manipulation.

Develop a Safe Trading Strategy

Having a structured trading strategy prevents making emotional mistakes. If you cover multiple aspects, such as considering market conditions, clear trading goals, and determining entry and exit points, it can improve your chances of success. Your risk tolerance can make a great plan if you follow it and if the market agrees with your strategy.

In crypto, it’s easy to get caught up in the excitement and make impulsive decisions, especially when seeing how many others are making loads of profits. Avoid rushing into buying MPLX during a price pump, as a correction can follow.

An effective risk management strategy is a great differentiator as a trader, and that includes MPLX. Use stop-loss and take-profit orders to limit losses and lock in profits automatically. Also, position-sizing is smart to not risk too much of your capital on a single trade, protecting your portfolio from significant losses.

How to Scan MPLX on Solsniffer

Copy the MPLX contract address: METAewgxyPbgwsseH8T16a39CQ5VyVxZi9zXiDPY18m
Open the Solsniffer website and paste the address in the search bar.
Within seconds, a detailed analysis of MPLX on-chain data is generated.
A security score called Snifscore also ranks the project out of 100 to determine the authenticity of the project.

MPLX Tokenomics

Total Supply: 1,000,000,000
Max Supply: 1,000,000,000
Market cap: $263,267,601

Snifscore Analysis

Snifscore: 84/100
High-risk factors: 2
Medium-risk factors: 1
Low-risk factors: None

Summary of (5) Contract Passed Indicators

No scams linked to owner’s wallet
Balanced ownership in top 10 wallets
Sufficient liquidity confirmed
Recent user activity confirmed
No custom fees applied

Find Out if MPLX Is a Fraudulent Token

Detecting a scam project requires a combination of caution, research, and vigilance. Fraudsters come up with numerous ways to trick investors, staying awake to the warning signs before falling victim.

One of the first red flags is an offer that guarantees high returns with little to no risk. Rug pulls are the most common scam at the moment, the project creators build hype around a new Solana project and then disappear with the profits. If the team of a project stops providing updates, it could be a sign of trouble.

A few tips to protect yourself is to research the team behind a project, see how well they execute their roadmap, use secure wallets, enable 2FA and avoid giving your personal data to social media giveaways.