Magic Square Debuts New IDO Platform to Democratize Web3 Retail Access
Summary:
Magic Square, backed by Binance Labs, has launched a new initial decentralized exchange offering (IDO) platform named Magic Launchpad. It's designed to democratize retail access for smaller Web3 investors. The platform's services extend beyond financial support, offering post-IDO and community-building support. Already hosting over 4.5 million registered users and 1,300 applications, Magic Square aims to be the first community-driven Web3 app store. The protocol's growth is attributed to fostering robust partnerships and delivering actual value to the community.
Magic Square, a project supported by Binance Labs, has unveiled its brand new initial decentralized exchange (DEX) offering (IDO) platform, Magic Launchpad. Set up on a decentralized exchange, the crowdfunding utility is designed to level the playing field for smaller Web3 investors, according to Magic Square's COO, Michael Landsberger. The platform accomplishes this by introducing allocation methodologies that prioritize less wealthy investors based on variables like user engagement and ecosystem input.
Landsberger asserts that this equitable method ensures wider community involvement as opposed to favoring a privileged few. Participation in investment rounds requires staking of Magic Square (SQR) tokens to accrue SQR points, dictating the allocation magnitude for certain projects that require such points. The "Road-to-IDO" campaign prior to each project's IDO launch is another means for users to accumulate points.
Landsberger characterizes the new platform as more than a financial lifeline for emerging Web3 protocols. It provides post-IDO and community growth support. “An IDO is not merely a fundraising device. Overly focusing on fundraising overlooks the true potential of an IDO. We see it as a potent tool to nurture a robust community and gain a user base, guaranteeing ongoing project success beyond just securing operating capital," he explained.
Boasting over 4.5 million registered users and 1,300 applications, Magic Square aims to be the first community-driven Web3 app store addressing user acquisition and engagement hurdles. The protocol’s rapid growth is attributed to an emphasis on organic growth and quality collaborations by Landsberger. He believes that striking a balance between forming high-quality alliances and offering real value has underpinned the protocol’s present growth and will steer its future success.
Decentralized crowdfunding is a rapidly expanding industry that Magic Square is now joining. Already 109 IDO launchpads are on the market with the largest, DAO Maker, worth over $2 billion in total market capitalization, which represents all projects that raised funds on the platform.
Oxbull, founded in 2021 and with an average investment return exceeding nine times, leads the way among IDO launchpad in terms of return on investment (ROI). IDOs are proving to be a popular capital-raising method for protocols. For instance, in early April, MerlinSwap DEX, a Bitcoin-based protocol raised around $480 million from 6,599 Bitcoin during its IDO, attracting in excess of 52,000 participants.
Published At
5/17/2024 4:13:56 PM
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