Magic Square, a crowdfunding platform backed by Binance Labs, has announced the launch of its new initial DEX offering (IDO) platform. This decentralized exchange (DEX) platform aims to provide retail access to Web3 investors with limited funds in a more democratic manner. Michael Landsberger, the chief operating officer of Magic Square, explained that the platform achieves this by implementing unique allocation strategies that prioritize users with fewer funds. These strategies consider factors such as user activity and contributions to the ecosystem.
To participate in investment rounds, users are required to stake Magic Square (SQR) tokens in order to earn SQR points. The allocation size for projects that require participation points is determined by these points. Additionally, users can accumulate points by participating in the “Road-to-IDO” campaign prior to the launch of each project’s IDO. This campaign rewards users based on their activity within the community of the new protocol.
The purpose of the new platform extends beyond providing financial support to emerging Web3 protocols. Landsberger explained that Magic Square aims to address user acquisition and engagement challenges, positioning itself as the first community-driven Web3 app store. With over 4.5 million registered users and more than 1,300 applications listed on its platform, Magic Square has gained popularity through its focus on organic growth and quality partnerships.
Magic Square is entering the decentralized crowdfunding industry, which is experiencing rapid growth. There are already 109 IDO launchpads in the market, with DAO Maker being the largest, valued at over $2 billion in terms of the total market cap of projects that have raised funds on the platform. In terms of investor returns, Oxbull is currently the dominant IDO launchpad, boasting an average return on investment (ROI) of over ninefold. ApeTerminal follows closely behind with an average ROI of over sevenfold, according to data from CryptoRank.
The popularity of IDOs as a fundraising method for crypto protocols is increasing. In April, MerlinSwap DEX, which is native to Bitcoin, raised 6,599 Bitcoin (BTC) worth $480 million during its IDO, attracting over 52,000 participants.
Overall, Magic Square’s new IDO platform aims to revolutionize retail access for Web3 investors with limited funds, providing not only financial support but also post-IDO and community-building assistance to emerging protocols.