Magic Square, a web3 app store backed by Binance Labs and others, has acquired token launch platform TruePNL for an undisclosed amount.
“The acquisition was financed entirely with cash,” Andrey Nayman, founder and CEO of Magic Square, told The Block. Nayman said that as part of the deal, Magic Square acquired TruePNL’s entire front-end and back-end infrastructure, “but excluding the brand name, domains, social media accounts, and TruePNL (PNL) tokens.”
MagicSquare began talks with TruePNL last month to initially explore white label solutions for its future staking and Launchpad platforms, but those discussions ultimately ended in a deal, Nayman said. “The acquisition was completed this week and there are no pending approvals,” he added.
What is Magic Square?
Founded in 2021, Magic Square is a cryptocurrency app store where users can find a variety of web3 apps in one place. Nayman said the store is employing a “community-driven verification system.” This means that all projects must be verified by the community before being listed.
Magic Store rewards users who interact with the platform with SQR tokens. “Users earn ‘karma points’ for their actions, with the potential to win daily rewards from a 10,000 SQR rewards pool,” Nayman said. He added that users who participate in the store’s advertising campaigns also receive rewards.
Magic Square has distributed more than 11 million SQR tokens to users to date, Nayman said. According to CoinGecko data, one SQR token currently costs about $0.50 and has a fully diluted value of about $520 million.
Since its launch, Magic Square has registered more than 1,100 apps and helped create more than 3.6 million unique wallets, according to Nayman. Magic Store has raised $11 million in total funding to date, with support from multiple investors including Binance Labs, Huobi Global, and Crypto.com. Magic Square’s value was estimated at $75 million in 2022. The company is not yet profitable, but it generates revenue through advertising campaigns, Neiman said.
What is TruePNL?
Founded in 2020, TruePNL is a Singapore-based token launch platform that helps projects list their tokens before they are released on cryptocurrency exchanges.
Since launching 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, which is currently priced at around $0.025 each and has a fully diluted value of around $740,000, according to CoinGecko data.
Users can stake PNL and earn APY rewards as well as earn points, which can be used to guarantee token offering allocations on the TruePNL Launchpad platform, Abdullin said.
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Abdullin said that as part of the acquisition, TruePNL will continue to operate as an independent platform. He also added that the PNL token will retain all its current utilities.
Regarding Magic Square’s SQR token, Nayman said the company will enhance its utility by introducing staking and an internal launchpad in the coming weeks. “Magic Square will introduce SQR staking for APR rewards using the TruePNL code,” he said. About the in-house Launchpad, Nayman said, “Our goal is to provide a more flexible Launchpad solution that fits the specific needs and objectives of a project.”
As part of the deal, TruePNL’s head of technology, Vyacheslav Tyurdenev, will join Magic Square, and the rest of TruePNL’s 12-person team will remain with the company, Abdullin said.
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