Magic Square Raises $3 Million in Seed Funding, led by Binance Labs and Republic Capital
- Magic Square markets itself as a community-owned Web3 solution with clear earning metrics, and SQR token rewards to incentivize the ecosystem’s participation.
Binance through its venture arm has announced it co-led a $3 million seed funding round with Republic capital for magic square. According to the announcement, the funding will be channeled towards community growth, talent acquisition, and product development.
Binance Labs co-led the seed funding round with the help of GSR, IQ Protocol, Kucoin Labs, Alpha Grep, Angel Investors, and Gravity Ventures.
Mia Mai, Investment Director at Binance Labs, said, “Binance Labs sees the potential in Magic Square, especially in its user-friendly designs and business model as a Web3 dapp store. We believe that the product suites that Magic Square supports, such as Magic ID, Magic Store, Magic Community, and Magic Affiliates can potentially be driving forces of Web3 ecosystem mass adoption and implementation.”
Magic Square Wins Binance’s Attention
Notably, the Magic Square ecosystem consists of the Magic store, Magic connect, and Magic Spaces components. It is the Magic store where users can access Web3 applications.
Magic Store markets itself as a community-owned Web3 solution with clear earning metrics and SQR token rewards to incentivize the ecosystem’s participation. The platform now enjoys support from the largest crypto exchange by daily traded volume, Binance among other notable investors.
According to Magic Square’s whitepaper, the platform is an interoperable space for users to discover and experience community-vetted crypto applications. Additionally, it is useful for crypto app developers to market and monetize their best applications.
Worth noting, that for an application to be registered for validation, the developers are expected to send a smart contract with 10,000 SQR Tokens. Whereby 35% goes to validators, 15% is paid out to Magic Square, and the rest is staked for the duration of the app’s listing on the Magic Store.
For comparison, Apple Inc. (NASDAQ: AAPL) takes almost 30 percent of developers on its App Store.
Notably, Magic Square ensures the security of the ecosystem and filters scam projects through the staked assets. A feature that lacks in the App Store or the Android counterpart.
The company won investors’ attention even though there are other similar projects in the market. Perhaps the vibrant community was the major contributing factor.
Nonetheless, Binance has been making spontaneous investment in the recent past as a way to flex its muscles and scare competitors.