Magic Square IDO Platform powered by Binance to democratize access for retail investors
Magic Square, backed by Binance Labs, has announced the launch of its new Initial DEX Offering (IDO) platform.
Magic Square CEO Michael Landsberger said the new crowdfunding platform is built on a decentralized exchange (DEX) and aims to democratize access to retail for Web3 investors with limited funds.
Magic Launchpad achieves this through unique allocation strategies that support users with minimal investment while considering factors such as user activity and ecosystem contributions. Landsberger told Cointelegraph:
“This inclusive approach ensures that more members of the community can participate, rather than limiting opportunities to a select few.
Users who wish to participate in investment rounds must first issue Magic Square (SQR) tokens to earn SQR points, which determine their allocation amount for certain projects that require participation points.
Users can accumulate points by participating in the “Road-to-IDO” campaign before the launch of each project's IDO, which rewards users based on their activity in the new protocol community.
The new platform aims to provide support beyond funding for new Web3 protocols such as post-IDO and community building support, Landsberger explained.
“We believe that IDO should not be just a means of fundraising. If the focus is only on raising money, the true potential of the IDO is missed. Our approach sees IDO as a powerful tool for building a strong community and user base, ensuring long-term project success rather than operational funding.
Magic Square claims to be the first community-driven Web3 app store that aims to address user acquisition and engagement challenges. The project has more than 4.5 million registered users and more than 1,300 applications listed on the platform.
Landsberger attributes the protocol's popularity to its focus on organic growth and quality partnerships. he said:
We have built strong partnerships and consistently delivered significant value to both projects and users in our ecosystem. Our dual approach of fostering high-quality partnerships and delivering real value has been critical to achieving our current growth and will continue to drive our success going forward.
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IDOs are becoming a popular source of funding for crypto protocols.
Magic Square is joining the rapidly growing industry of decentralized crowdsourcing as the latest emerging protocol.
There are already 109 IDO launchpads on the market, the largest being DAO Maker, with a combined market value of more than $2 billion, which measures all the projects that have raised money on the platform.
Oxbull remains the dominant IDO launch pad in terms of investor returns. In the year Founded in 2021, the protocol has an average return on investment (ROI) of more than nine times, compared to the second most profitable ApeTerminal, which has an average ROI of more than seven times, according to CryptoRank data.
IDOs are becoming a popular way for protocols to raise funds. In early April, Bitcoin's native MerlinSwap DEX raised $480 million worth of 6,599 bitcoins (BTC) during the IDO, which attracted more than 52,000 participants.
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