Binance Labs-backed Web3 app store Magic Square acquires token launchpad TruePNL

Magic Square, a web3 app store backed by Binance Labs and others, has acquired TruePNL, a token launch platform, for an undisclosed amount.

“The acquisition was financed entirely in cash,” Andrey Nayman, founder and CEO of Magic Square, told The Block. As part of the deal, Magic Square acquired TruePNL’s entire front-end and back-end infrastructure, Nayman said, but “excluding the brand name, domain, social networks and the TruePNL token (PNL)”.

Magic Square began discussions with TruePNL last month to initially explore a white-label solution for its upcoming staking and launchpad platforms, but those discussions resulted in an agreement, Nayman said. The acquisition “was completed this week and no approvals are pending,” he added.

What is the Magic Square?

Founded in 2021, Magic Square is a crypto app store that allows users to discover various Web3 apps in one place. The store uses a “community-driven validation system,” Nayman explained, meaning each project must be validated by the community before being listed.

Magic Store rewards users who interact with the platform in its SQR tokens. “Users earn ‘Karma Points’ for their actions, with the opportunity to earn daily rewards from a 10,000 SQR rewards pool,” Nayman said. Users who participate in the store’s advertising campaigns are also rewarded, he added.

Magic Square has distributed more than 11 million SQR tokens to users to date, Nayman said. An SQR token currently costs around $0.50 with a fully diluted valuation of around $520 million, according to CoinGecko. data.

Since its launch, Magic Square has listed more than 1,100 apps and helped create more than 3.6 million unique wallets, according to Nayman. Magic Store is backed by several investors, including Binance Labs, Huobi Global and Crypto.com, having raised a total of $11 million in funding to date. Magic Square was valued at $75 million in 2022. The company is not yet profitable but generates revenue through advertising campaigns, Nayman said.

What is TruePNL?

Founded in 2020, TruePNL is a Singapore-based token launch platform that helps projects list their tokens before they reach crypto exchanges.

Since hitting its launchpad in 2021, TruePNL has helped raise more than $6 million for 62 projects, founder and CEO Russell Abdullin told The Block.

TruePNL also has its own token called PNL, currently priced at around $0.025 each, and has a fully diluted valuation of around $740,000, according to CoinGecko. data.

Users can stake on PNL, earn APY rewards, as well as earn points, which could then be spent on guaranteed allocations in token offerings on the TruePNL launch platform, Abdullin said.

The agreement

As part of the acquisition, TruePNL will continue to operate as an independent platform, Abdullin said. The PNL token will also retain all of its current utilities, he added.

As for Magic Square’s SQR token, Nayman said it would have improved utility with the introduction of staking and an internal launchpad in the coming weeks. “Using TruePNL code, Magic Square will introduce SQR staking for APR rewards,” he said. Regarding the in-house launchpad, Nayman said: “Our goal is to provide projects with a more flexible launchpad solution, tailored to their specific needs and objectives. »

As part of the deal, TruePNL’s CTO Vyacheslav Tyurdenev joined Magic Square, while the rest of TruePNL’s 12-member team will remain with the company, Abdullin said.

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