<p><span data-contrast="auto">Crypto app store Magic Square is in constant fundraising mode, despite the bear market. </span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">To date, the early-stage startup has raised $4 million at a $75 million valuation, all from token rounds, Andrey Nayman, co-founder and CEO of Magic Square, told The Block in an interview.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The startup first closed an oversubscribed $3 million seed round </span><a href="https://www.binance.com/en/blog/ecosystem/binance-labs-leads-$3-million-seed-funding-for-magic-square-421499824684904080"><span data-contrast="none">co-led by Binance and Republic Capital</span></a><span data-contrast="auto"> in July. Since then, </span><a href="https://cryptoslate.com/press-releases/huobi-ventures-invests-in-magic-square-to-transform-the-future-of-crypto/"><span data-contrast="none">Huobi Global</span></a><span data-contrast="auto">, </span><a href="https://www.gate.io/blog_detail/1594/Gate.io-Labs-Invests-in-Magic-Square-World-s-First-Crypto-App-Store"><span data-contrast="none">Gate.io</span></a><span data-contrast="auto"> and most recently Crypto.com have joined the cap table as strategic investors.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">So, why does Nayman keep raising funds?</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span><span data-contrast="auto">“The answer is very simple: uncertainty,” Nayman said. “Because I don't know when the crypto winter is over, so it's very important for us to be sustainable.”</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The fundraising isn’t stopping with Crypto.com's contribution. Magic Square plans to raise an additional $4.4 million at a $120 million valuation in another strategic token round, Nayman said.</span></p> <p><span data-contrast="auto">“We're raising more from strategic partners that can assist us to grow, assist us to build the brand promise,” he added. “For us, the perfect timing to raise money is when you can, not when you need.”</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <h2>What is Magic Square?</h2> <p><span data-contrast="auto"><a href="http://www.magicsquare.io/">Magic Square</a> is a one-year-old platform that wants to help the crypto industry garner one billion users with improved discovery tools.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Users can use <a href="https://magic.store/">Magic Square's Magic Store</a> desktop application to easily find new crypto projects and applications.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“YouTube is a discovery channel, the app store is a discovery channel,” Nayman said. “In the crypto space, somehow people think that exchanges are discovery channels. They are not. They are good for tokens, liquidity but not for the discovery of the product.”</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p>There are currently 40 people working to build what Magic Square hopes will be a decentralized community.</p> <p><span data-contrast="auto">To get listed on the store, apps and projects must go through a community validation process, which includes a review of the project’s litepaper, audit reports and more. This process is managed by Magic Square validators.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <h2>Why so many strategic investors?</h2> <p><span data-contrast="auto">Backers of Magic Square include Binance, GSR, Republic Capital, Gravity Ventures, and more recently strategic investors Crypto.com, Huobi Global, and Gate.io.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">The strategic investors play a vital role in helping build out the discovery platform by enabling partnerships with portfolio companies.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">“This is something that was really helpful for us to grow our community, because we barely invested any budget on marketing or to promote the product,” Michael Landsberger, Magic Square's COO, said.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Around 95% of the projects on the platform came from an introduction by one of the company’s investors, Landsberger said.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <h2>Plotting a Series A</h2> <p><span data-contrast="auto">All the funding raised by Magic Square so far has been secured via token sales. Pure token sales are becoming a less favored fundraising method in crypto, with investors instead </span><a href="https://www.theblock.co/post/171609/why-equity-plus-token-warrants-is-the-new-go-to-formula-for-crypto-vcs"><span data-contrast="none">choosing equity plus token warrant</span></a> structures,<span data-contrast="auto"> due to regulatory fears and depressed token markets.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">Despite raising funds via tokens, Magic Square won't be launching the token on exchanges until market conditions improve.</span></p> <p><span data-contrast="auto">After the Token Generation Event (TGE), which will occur alongside the launch of the live version of the Magic Store, t</span><span data-contrast="auto">he startup will look to secure a Series A round that will involve selling equity to investors, Nayman said.</span><span data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}"> </span></p> <p><span data-contrast="auto">A public beta version of the Magic Store is expected to launch by the end of this year. </span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>