Magic Square, a company backed by Binance Labs, has announced the launch of its new initial DEX offering (IDO) platform. This platform, built on a decentralized exchange (DEX), aims to provide retail access for Web3 investors with limited funds. According to Michael Landsberger, the chief operating officer of Magic Square, the platform seeks to democratize investment opportunities by implementing unique allocation strategies that favor users with fewer funds. Factors such as user activity and ecosystem contributions are taken into consideration.
To participate in investment rounds, users must first stake Magic Square (SQR) tokens to earn SQR points, which will determine their allocation size for certain projects. Additionally, users can accumulate points by participating in the “Road-to-IDO” campaign before each project’s IDO launch. This campaign rewards users based on their activity within the platform’s community.
The platform aims to offer more than just financial support for emerging Web3 protocols. It provides post-IDO and community-building support as well. Magic Square claims to be the first community-driven Web3 app store, addressing user acquisition and engagement challenges. The project currently has over 4.5 million registered users and more than 1,300 applications listed on its platform.
Landsberger attributes the protocol’s popularity to its focus on organic growth and quality partnerships.
Decentralized crowdfunding is a rapidly growing industry, and Magic Square is joining this space as an emerging protocol. Currently, there are 109 IDO launchpads in the market, with the largest one, DAO Maker, having a market cap of over $2 billion. Oxbull is the dominant IDO launchpad in terms of investor returns, with an average return on investment (ROI) of over ninefold. In comparison, ApeTerminal has an average ROI of over sevenfold, according to CryptoRank data.
IDOs have become a popular funding source for crypto protocols. For example, MerlinSwap DEX raised 6,599 Bitcoin (BTC), worth $480 million, during its IDO in April, attracting over 52,000 participants.
Overall, Magic Square’s new IDO platform aims to provide retail access and support for emerging Web3 protocols, attracting investors with limited funds and offering unique allocation strategies.