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 sum.

"The acquisition was financed entirely with cash," Andrey Nayman, founder and CEO of Magic Square, told The Block. As part of the deal, Magic Square has acquired TruePNL's entire front and backend infrastructure, Nayman said, but "excluding the brand name, domain, social media accounts, and the TruePNL (PNL) token."

Magic Square began talks with TruePNL last month to initially explore a white-label solution for its upcoming staking and launchpad platforms, but those discussions ended up in the deal, Nayman said. The acquisition "concluded this week, and there are no pending approvals," he added.

What is Magic Square?

Founded in 2021, Magic Square is a crypto app store that lets users discover various web3 apps in one place. The store employs a "community-driven validation system," Nayman said, meaning that every project must be validated by the community before being listed.

Magic Store rewards users for interacting with the platform in its SQR tokens. "Users earn 'Karma points' for actions, with the potential to earn daily rewards from a 10,000 SQR rewards pool," Nayman said. Users who engage with the store's ad campaigns also get rewarded, he added.

Magic Square has distributed over 11 million SQR tokens to users to date, Nayman said. One SQR token is currently priced at about $0.50 with a fully diluted valuation of about $520 million, according to CoinGecko data.

Since its launch, Magic Square has listed more than 1,100 apps and helped create over 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 $11 million in total funding to date. Magic Square was valued at $75 million in 2022. The firm is not yet profitable but generates revenue through ad 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 hit crypto exchanges.

Since releasing 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 about $0.025 each, and has a fully diluted valuation of about $740,000, according to CoinGecko data.

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

The deal

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

As for Magic Square's SQR token, Nayman said it will have enhanced utility with the introduction of staking and an in-house launchpad in the coming weeks. "Using the TruePNL code, Magic Square will introduce SQR staking for APR rewards," he said. For 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 technical lead, Vyacheslav Tyurdenev, has joined Magic Square, while the rest of TruePNL's 12-member team will stay with the firm, Abdullin said.