Comprehensive interpretation of Magic Eden's Launchpad operation status and innovative projects
Original Author: Fog Sea
The once-popular Launchpad of encrypted exchanges was borrowed by NFT trading platforms.
On September 20, OpenSea officially announced that it will soon launch the SeaDrop function, which will support NFT projects to be launched and minted directly on the platform. SeaDrop is a new, secure open-source contract that powers the Drop experience so creators don't need to create custom smart contracts.
SeaDrop supports creators publishing NFTs on the new OpenSea home page, in addition to dedicated Drop pages (including storytelling, images, videos, etc.), minting with SeaDrop, supporting whitelists, storing information in a decentralized manner, and more Function. It can be seen from the model of SeaDrop that this is the initial product of Launchpad.
The founder of the NFT trading platform X2Y2 also disclosed on social media that Launchpad will be launched soon. Whether it is an FT or NFT trading platform, the first launch of high-quality assets is the embodiment of the core competitiveness of the platform. Exchanges such as Binance have provided a good model for the potential of high-traffic trading platforms to incubate high-quality projects. Judging from the previous competition of exchanges, the Launchpad battle of the NFT trading platform will also be a fierce battle.
Magic Eden, the NFT trading platform with the highest trading volume on the Solana chain, is the pioneer of Launchpad. It has been online for more than two months. In this article, PANews will explain the NFT Launchpad operation model, rate of return, and optimized direction.
What is Magic Eden?
A year ago, Sidney, who worked as an engineer at Uber and Facebook successively, and his friend Jack started their second venture in the encryption field. The platform built by this venture is Magic Eden. Then dYdX's No. 2 employee Zhuoxun and Sidney's Uber colleague Zhuojie also joined in one after another.
On March 14, 2022, Magic Eden completed a financing of US$27 million. Participating investors include Sequoia Capital, Paradigm, Greylock, etc. On June 21, 2022, Magic Eden completed a $130 million Series B round of financing at a valuation of $1.6 billion, co-led by Electric Capital and Greylock.
With the upsurge of migrating to the SOL chain in the NFT market this year, the transaction volume of Magic Eden continues to grow. According to data from Magic Eden's official website, its total transaction volume exceeded US$1 billion on May 17 this year. On July 3, the total transaction volume was US$1.5 billion, and the number of traders reached 800,000. This represents a 50% increase in transaction volume in less than two months.
In addition to the NFT trading market, Magic Eden's core products include Launchpad, Eden Games, Magic Ventures and Magic DAO. Launchpad provides convenience for creators and project parties, and is also a channel for users to discover high-quality assets. It is an important part of Magic Eden's growth flywheel. Eden Games is a content center for game publishers, and the game has become the entrance layout for users to enter Web3 in advance. Magic Ventures is the venture capital arm of Magic Eden, focusing on investing in the game sector. Magic DAO is Magic Eden's exploration of decentralized governance. Currently, members can purchase Magic Ticket to become a member of Magic DAO. Tickets are divided into three levels: OG, Degens, and Normies. Each holder can vote, obtain a whitelist of NFT projects on the SOL chain, and participate in platform internal testing, etc.
In addition, Magic Eden announced in August that it will launch the Ethereum ecosystem and is currently in the internal testing phase.
Magic Eden Launchpad Market Operation Status
From July so far, a total of 46 projects have been launched on the Magic Eden Launchpad market, covering fields such as clothing, music, sports, art, and culture. Among them, there are 2 membership card projects, 16 games, 9 NFT and other tools, 7 community, 2 entertainment, 3 art, and 7 traditional brands into NFT. As shown in the following table:
Combined with the data in the above table and the current operation of the Magic Eden Launchpad market, the main features are as follows:
The paper hand has a higher winning rate, and the diamond hand has a higher return rate
From the perspective of return on investment alone, among the 46 projects currently on the line, 23 projects have a positive return on paper hands that are sold immediately after opening, accounting for 50%; 17 projects have a positive return on diamond hands that have been held so far , accounting for 36%.
The projects with the highest increase are: WADE Friends & Family in the brand sector increased by 115 times, Liberty Square in the game sector increased by 18.43 times, KikiVerse in the game sector increased by 3.2 times, Anybodies in the brand sector increased by 3 times, and POG Digital in the brand sector increased by 1.66 times.
The projects with the highest losses are: community Loop Benders to zero, NFT investment tool DreamersNFT to zero, clothing brand Internet Foxes to zero, golf membership card MDC Heritage fell by -85%, and art Baked Berserk fell by -80%.
Among the projects with a positive rate of return, the rate of return for paper hands is between 0-1000%, with a median of about 30%; the rate of return for diamond hands ranges from 10% to 11500%. Among projects with negative returns, the median rate of return for paper hands is around -50%, and that for diamond hands ranges from -6% to zero.
Significant Matthew effect: a small number of projects account for the vast majority of transaction volume and market value
The total historical transaction volume of the 46 projects that are currently online is 706,654 SOL, of which the top five historical transaction volume projects are: WADE Friends&Family, Liberty Square, Rakkudos, Bounty Hunters, Utility APE, with a total of 398,980 SOL. The sum of transactions generated by these five projects exceeds the sum of transactions generated by the remaining 41 projects.
The total market value of the 46 projects currently on the line is 669,660 SOL, of which the top three projects are: Liberty Square, WADE Friends&Family, and Helio, with a total of 343,783 SOL. The sum of the market value of the three projects exceeds the sum of the market value of the remaining 43 projects.
Improve project information transparency and reduce information asymmetry
The transparency of the projects launched on the Launchpad market has been continuously improved. From the previous projects that did not disclose the details of the use of fundraising information to the public now, from the previous project team information that could not be verified to the current disclosure of team members’ LinkedIn and Twitter. Users and the community have access to more verifiable information and a more comprehensive understanding of the project, both in terms of investment decision-making and the degree of participation in community building. At the same time, the project party gains more trust and members who are willing and able to participate in community building.
The frequency of online is relatively high, and the types of projects are diverse and innovative
The frequency of Magic Eden Launchpad projects is relatively high, basically keeping 5 projects online in a single week. The types of online projects are also rich and diverse to meet the hobbies and needs of different users.
Among them, there are more game NFTs, accounting for 34%. However, the homogeneity is also serious, and most of them are NFTs that have been seriously involved in the market to earn coins by staking and playing games. NFT tools or third-party services ranked second, accounting for 19%, and the projects were innovative. Community and brand categories both accounted for 15%, providing a market experiment for the combination of brands and Web3.
Representative or innovative projects include Crowdsurf for NFT diamond hands, WADE Friends & Family and Anybodies: Tay Keith, the main brand cooperation, KikiVerse of Watch2Earn type, EZU of Wear2Earn, Women of Mars in the game section, and development tools Utility APE and Helio for third-party services.
PANews attaches an introduction to these innovative projects in the last part of this article.
The quality of projects is uneven, and the platform needs to balance quality and quantity
Judging from the overall quality of the currently launched projects, the Magic Eden Launchpad market does not set too high a threshold for the launched projects. This mode of operation maximizes the exposure of projects with ideas, allows more projects to be seen by users, helps low-profile projects complete the cold start, and also attracts a wider group of users for the platform.
However, the disadvantage of this method is also extremely obvious, and the hidden danger is that the quality of the project is uneven. According to the statistics in the table above, at least half of the projects currently on the line have left participating users in a state of floating losses. As far as investment itself is concerned, betting participation is a conscious behavior of users, and the platform can be liberalized as much as possible.
However, the market defaults that all projects that can be launched on Launchpad are projects that have been screened by the platform. If the project investment expectations are always lower than market expectations, what motivation and confidence do users have to support the Launchpad market. Therefore, as far as the platform is concerned, there may be a loss of users in the long run. And in this way, the significance of the Launchpad market providing exposure to more high-quality projects and discovering high-quality projects will no longer exist.
In addition, as mentioned above, a small number of high-quality projects create more transaction volume and market value, and 20% of the projects bring 80% of the value to the platform. Therefore, from the perspective of long-term development, as an NFT trading platform, we should not only use the payment of the project party and the large quantity as the only standard, but should control the quality of the online project, and be more strict and cautious in project competition, so as to achieve the goal of users, project parties, and transactions. Three wins for the platform.
Inventory of innovative projects launched on Launchpad
Crowdsurf
The pain point solved by Crowdsurf, which uses NFT diamond hands as certificates, is to set standards for loyal NFT users. So far, NFT holders have not been rewarded for their diamond hands, and projects have not had an easy way to identify their most loyal investors. Crowdsurf sets a new standard for diamond hand investors to be recognized by the community as the most loyal holders. The specific method is that users can improve their Crowdsurf Investor Score (CIS) by staking their diamond hand NFT on the Crowdsurf platform, and then gain access to new projects, whitelists and other rewards.
Meanwhile, Crowdsurf's Pledge Analytics data product provides partners with analytics about their community and shares a percentage of B2B revenue to all Crowdsurf NFT holders. In the future, QualityDAO, an investment intelligence platform, will be launched to provide investors with tools and content to evaluate Web3 projects and venture capital, including financial statements, financial reports, and completion of company milestones. Its founder, Matt, spent 8 years at a Big Four auditing and consulting firm before leading a finance team in the crypto startup space. Responsible for the vision and drive of Crowdsurf in terms of finance, operations and production. Dan is its co-founder and CTO, a senior software engineer, and served as COO at Arweave in its early days.
WADE Friends & Family
WADE Friends & Family, which focuses on brand cooperation, is a cooperation project between IPX and CRIPCO. CRIPCO is an IEO project of the exchange FTX. CRIPCO builds an ecosystem around NFT in terms of IP branding, aiming to create an ecosystem in which NFT issuers and holders can collaborate to create IP brands, thereby helping "consumers" to complete the "consumer" The transformation of "creator" will change the development mode of NFT IP brand and promote the innovation of "creator economy". IPX occupies a dominant position in the global online and offline IP business (formerly LINE Friends), and is also the world's first emoticon package property rights company, with annual sales of 200 million US dollars. At the same time, in addition to the existing retail field, through its own IP brands Brown & Friends, BT21, WDZY, etc., it cooperates with global partners such as Netflix, Tencent, Big Hit, etc., to launch various media and entertainment content, and expand the infinite possibilities of brand IP .
Users who hold WADE F&F NFT will have the opportunity to obtain a limited edition fashion cooperation NFT in the monthly cooperation with the world's top brands. These brands will always open the service of exchanging physical fashion goods, and the winners can choose to keep or destroy them to exchange for physical goods. WADE F&F holders will also receive airdrops and whitelists from multiple NFT projects that are planned to cooperate. There are also invitations to IRL music, fashion events (Wade is a musician and has a great fashion/music network in Web2).
KB is the CEO of WADE F&F NFT, as well as the creative director and program host of WADE Project. He launched "Emotionally Unavailable" with Edison Chen, a brand that cooperated with Nike and introduced "PEACEMINUSONE" by Quan Zhilong. WADE F&F will use 30% of the proceeds from the sale of NFTs for partnerships, 50% for marketing, and 20% for staffing and teams.
Anybodies
Anybodies of the flagship brand: Tay Keith has partnered with Anybodies for a limited-edition collection inspired by Tay Keith's signature DOA branding. By minting and redeeming physical sweaters, users tap the NFC chip in the sweater to get exclusive Tay Keith drops such as 3D avatars, free tickets to live events, Tay Keith Beats and more.
Anybody uses a combination of NFT, NFC and blockchain technologies to create unique products that deliver a true physical-to-digital experience, ownership and utility. To unlock the digital experience and airdrop, the holder must interact with the NFC built into the sweater via a smartphone device. All holders can unlock and receive monthly airdrops on a first-come, first-served basis by tapping the NFC chip built into the sweater; free VIP or backstage tickets to live events with partner artists; free drinks, gifts etc.
The Anybodies program works with legacy brands, individuals, and more to help bridge the gap between Web 2 and Web 3. This Tay Keith x Anybodies airdrop is a partnership in itself. Anybodies is already working with traditional brands like NIKE and Web 3 native brands like DeGods, with many others on the way.
80% of the funds raised through NFT are used for the sweaters and technology needed to manufacture the product, and 20% are used for development and indirect marketing costs.
KikiVerse
KikiVerse, which focuses on the concept of Watch2Earn, is a multi-chain project currently based on SOL and ETH ecology. It uses ThreePointZero Studio to develop watch2earn animation series. Starting December 2021, Kiki combines art and music with over 1,200 fully hand-drawn characters and over 100 fully hand-drawn animated characters. The purpose of KikiVerse is to openly collect and adopt the opinions and ideas of the community based on the concept of KikiVerse as a decentralized entertainment brand, and build together with the community.
Cyborg is the founder of KikiVerse and is known to the community for her contributions to The OpenDao and 721DAO. FourLeafClover is the creator of Kikiverse and the artist behind the rebranding of Squishiverse and Sappy Seals. HGE is an advisor to KikiVerse, he was the founder of The OpenDAO, one of the experienced investors in the NFT field, and has invested in more than 1,000 projects.
EZU
EZU, which focuses on the concept of Wear2Earn, is the first ETH chain Launchpad project on Magic Eden and is a sister project of Psychedelics Anonymous built by Voltura Labs. Psychedelics Anonymous has traded over 39,000ETH since December 2021. The wear2earn model created by EZU rewards consumers for wearing a product with an NFC chip, linked to an AR-enabled smart contract, so that EZU will be able to know when and where the user is wearing the item.
The data privacy obtained by EZU is controlled by the user. Each user can set whether they want to share data and the level of data they want to share, which will correspond to the number of tokens rewarded by the user. Similar to Psychedelics Anonymous, all holders of EZU will receive free access to mental health treatment, mentoring, educational resources and crisis support provided by third parties as part of Voltura Lab's philanthropic mission to those living with mental health disorders.
Lewis Gale is the strategy officer for the project; Megan Kaspar is responsible for product strategy and chief advisor, a member of Red DAO and director of Firstlight. Ann McFerran is a product consultant. She is an innovative and entrepreneurial entrepreneur in the field of beauty. Forbes 100 female founders under the age of 30. Glamnetic created $50 million in revenue in the first year and has partnered with Ulta, Sephora, Nordstroms and Urban Outfitters has formed a partnership.
Women of Mars
The Women of Mars in the game section is the second generation collection of Miners of Mars, hand-painted by the world-renowned Marvel comic artist Aleksa Gajic. Women of Mars play an important role in the Miners of Mars ecosystem, as Women play an important role in the game's eco-model, Women fill various roles and positions: Police, Botany, Politics, Flight Control, Mechanic, Medic Personnel, robotics, teachers, etc., are critical to future reproductive mechanisms.
Owning Miner and Women of Mars at the same time can use OSM tokens to mint Kid of Mars (only 3000 in total). Holding Miner, Women, Kid of Mars and OSM tokens at the same time, you will have the opportunity to summon SemiGodz, only 700 SemiGodz will rule the Mars universe with 7 kings.
Aleksa Gajic is a world-renowned cartoonist, film director, and illustrator for Marvel Comics' Bane of Gods. Tomo Vukasovic aka UX design. Uros Petrovic is an author, speaker and NFT collector who has sold over 450,000 books worldwide.
Utility APE
NFT tool Utility APE builds practical and safe tools in Web3, which provides services such as enhanced gameplay and security for Illuvium, Nekoverse, Cheddar Block Games, Kikiverse, etc. Holding Utility APE on their server can realize the discount of Utility APE. For example, Gen1 elite holders can get an additional 1-week free trial period and a pass worth $450/month. Depending on the rarity of the NFT, holders earn 2-3x more than non-holders buying real items like NFTs and tokens in stores. Full access to all Utility APE bot features, including NFT sniping tools and price alerts. are currently under development.
The details of the use of funds raised from the sale of NFT are 50% for product development: including robot functions, ease of implementation and ease of use; 30% for marketing, partners and communities; 20% for project strategy and supervision, and executive management ; 10% of which goes to team development.
Onyx is the CEO, a Crypto-native CEO since 2015, and an entrepreneur with over 20 successful project launches, leading a team of over 150 people and managing a community of over 1 million active fans. Ertz is the Chief Operating Officer with 15 years of experience in operations and analytics at top consulting firms, having raised over $10 million in funding and serving as an advisor to several successful exits of web2 and web3 technology startups. VmpyreSol is CTO, 10 years experience in software development, qualified cybersecurity expert with expertise in social tools, founder of BotsOnDisplay. Nicolo is a design lead with over 14 years experience in the entertainment industry, having worked on projects for Disney, Sesame Street, Tiesto and Deadmau5. Tyler is a product manager with 15 years of experience as a product owner and project manager in financial software, crypto investing, and gaming products, with expertise managing large remote delivery teams. The number of official Twitter followers is 25K, and the number of Discord users is 15K.
Helio
NFT tool Helio is a Web3 payment platform, currently more than 1000 projects, builders and users use Helio to accept e-commerce, subscriptions, Discord payments, plugins and other functions. Its mission is to accelerate the adoption of Web3 payments and reduce the cost of online payments to zero. The utility of holding Helions NFT is:
HelioX Subscription: Hold a HelioX NFT in your wallet to access HelioX, including 0% Tx fees, API, branded checkout, plugins, Discord bots, token payments, and more. Any future customers of Helio will either subscribe to 2 SOL/month to access HelioX, or purchase Helions NFTs on the secondary market, creating long-term, incremental demand for NFTs as Helio scales.
Rewards from Helions DAO: Holders are members of the Helions DAO, which generates rewards (10% royalty, transaction and subscription fee credits) from the operation of the NFT and Helio. Helions DAO pays 75% of the rewards to HODlers every quarter, and the remaining 25% of the rewards and about $50,000 in seed money Helio donated to the DAO are used to acquire treasury assets and organize community events to drive the value of NFT
Helions plans to expand the platform to ETH in the fourth quarter of 2022, and launch the Web3 content creator payment platform, and will continue to establish more partnerships. Details of NFT fundraising purposes: 50% for Helio R&D: team expansion, product development (9-month cycle), 30% for Helios marketing, art, content development and LP expenses, 15% for Helio SG&A expenses (sales, Marketing, etc.), 5% for DAO funds and community activities.
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