With all the bubble talk and speculation recently (of which I have no real opinion either way) - to me, this is the biggest evidence I've seen of a bubble. The day after Magic posted on HN, someone posted how to make an identical service with only a couple hours (tops) of configuration. Per user, this valuation seems insane. You could launch an identical service for free, essentially instantly, and for tremendously less than $12 million you could get the same number of users and same brand recognition. I have no idea how this can be justified.
I also think Magic is going to be hard to be sustainable due to fraud. Get Magic to buy you thousands of dollars worth of something and then do a chargeback on the card (or use a stolen credit card). There's nothing they can really do about that other than try to detect fraud before it happens.
I also think Magic is going to be hard to be sustainable due to fraud. Get Magic to buy you thousands of dollars worth of something and then do a chargeback on the card (or use a stolen credit card). There's nothing they can really do about that other than try to detect fraud before it happens.