The Launchpad, once popular on crypto exchanges, was borrowed from the NFT trading platform.
On September 20, OpenSea officially announced the upcoming SeaDrop feature, which supports NFT projects to be launched and cast 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 to publish NFTs on the new OpenSea homepage, in addition to dedicated Drop pages (including storytelling, images, videos, etc.), coinage using SeaDrop, support for whitelisting, and decentralized storage of information. From the SeaDrop model, it can be seen that this is the initial product of the Launchpad.
The founder of the NFT trading platform X2Y2 also revealed on social media that the upcoming launch of Launchpad was also available. Whether it is an FT or NFT trading platform, the launch of high-quality assets is the embodiment of the core competitiveness of the platform. Trading platforms that occupy the high ground of traffic have the potential to incubate quality projects, and exchanges such as Binance already provide a good model. Judging from the previous competition on the exchange, the Launchpad battle of the NFT trading platform will also be a battle.
Solana on-chain highest-volume NFT trading platform Magic Eden is the forerunner of Launchpad, has been online for more than two months, this article PANews will sort out the Magic Eden Launchpad market, for users to interpret the NFT Launchpad operating model, returns, and optimization direction.
What is Magic Eden?
A year ago, Sidney, who had worked as engineers at Uber and Facebook, and his friend Jack started their second venture in the crypto space, and the platform built by this venture was Magic Eden. Subsequently, Zhuoxun, the No. 2 employee of dYdX, and Sidney’s colleague Zhuojie at Uber also joined in.
On March 14, 2022, Magic Eden completed a $27 million financing round with Sequoia Capital, Paradigm, Greylock and others. On June 21, 2022, Magic Eden completed a $130 million Series B funding round at a $1.6 billion valuation, co-led by Electric Capital and Greylock.
Magic Eden’s trading volume continues to grow as the NFT market has seen a wave of migration to the SOL chain this year. According to Magic Eden’s official website, its total trading volume exceeded 1 billion US dollars on May 17 this year, and on July 3, the total transaction volume was 1.5 billion US dollars, and the number of traders reached 800,000. This means a 50% increase in trading volume in less than two months.
In addition to the NFT marketplace, Magic Eden’s core products include Launchpad, Eden Games, Magic Ventures, and Magic DAO. Launchpad provides convenience for creators and project parties, as well as a channel for users to discover quality assets, and is an important part of Magic Eden’s growth flywheel. Eden Games is a content hub for game publishers, pre-emptively laying out the way for games to become the user’s entry to Web3. Magic Ventures is Magic Eden’s venture capital division, which focuses on investing in the gaming sector. Magic DAO is Magic Eden’s exploration of decentralized governance, and members can currently purchase Magic Ticket to become a member of Magic DAO. Tickets are divided into three levels: OG, Degens, and Normies, where each holder can vote, get a whitelist of NFT projects on the SOL chain, participate in the platform’s internal beta, and more.
In addition, Magic Eden announced in August that it will launch the Ethereum ecosystem and is currently in the private beta phase.
Magic Eden Launchpad Market Operation Status
Since July, the Magic Eden Launchpad market has launched a total of 46 projects, covering the fields of clothing, music, sports, art, culture and so on. Among them, there are 2 membership card projects, 16 games, 9 NFT and other tools, 7 communities, 2 entertainment, 3 art, and 7 traditional brands entering the NFT category. The following table applies:
Combined with the data in the above table and the current operation of the Magic Eden Launchpad market, the main features are as follows:
Paper hands have a higher winning rate and diamond hands have a higher rate of return
From the perspective of return on investment alone, 23 of the 46 projects currently online have a positive yield of paper hands that are sold immediately at the opening, accounting for 50%; There are 17 projects with positive yields of diamond lots, accounting for 36%.
The items with the highest increases were, in order: the brand sector WADE Friends & Family rose 115 times, the game sector Liberty Square rose 18.43 times, the game plate KikiVerse rose 3.2 times, the brand plate Anybodies rose 3 times, and the brand plate POG Digital rose 1.66 times.
The projects with the highest losses were, in order, the community Loop Benders zero, the NFT investment tool DreamersNFT zero, the clothing brand Internet Foxes zero, the golf membership card MDC Heritage fell by -85%, and the art Baked Berserk fell by -80%.
In projects with positive yields, the paper hand yield is between 0-1000%, of which the median is about 30%; Diamond lot yields range from 10% to 11500%. In projects with negative yields, the median paper lot yield is around -50%, and the diamond lot yield ranges from -6% to zero.
The Matthew effect is significant: a small number of projects account for the vast majority of trading volume and market capitalization
The total historical transaction volume of the 46 projects currently launched is 706654 SOL, of which the top five projects in terms of historical transaction volume are: WADE Friends & Family, Liberty Square, Rakkudos, Bounty Hunters, Utility APE, a total of 398980 SOL. These five projects generated more transactions than the remaining 41 items combined.
The total market capitalization of the 46 projects currently online is 669660 SOL, of which the top three projects by market capitalization are: Liberty Square, WADE Friends & Family, and Helio, with a total of 343783 SOL. The combined market capitalization of the three projects exceeds the market capitalization of the remaining 43 projects.
Improve the transparency of project information and reduce information asymmetry
The transparency of projects launched in the Launchpad market has been continuously improved, from the previous project does not disclose the details of the use of fundraising information to the community now, from the previous project team information can not be verified, to now disclose the LinkedIn and Twitter of team members. Users and communities are exposed to more verifiable information and a more comprehensive understanding of the project, both in terms of investment decisions and the extent of participation in community building. At the same time, the project side gains more trust and members who are interested in participating in the construction of the community.
The frequency of on-line is high, and the types of projects are diverse and innovative
Magic Eden Launchpad projects are launched frequently, basically maintaining 5 projects 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 games of NFTs, accounting for 34%, but the homogenization is also more serious, mostly for the market has a serious NFT pledge to earn coins, play games to earn coins. NFT tools or third-party services ranked second, accounting for 19%, of which projects have been innovated. Both the community and brand categories accounted for 15%, providing a market experiment for the combination of brands and Web3.
Representative or innovative projects include Crowdsurf, which makes credentials for NFT diamonds, WADE Friends & Family and Anybodies: Tay Keith, Watch2Earn-type KikiVerse, Wear2Earn’s EZU, Women of Mars in the gaming section, Utility APE and Helio, development tools and third-party services.
PANews attaches an introduction to these innovative projects in the last section of this article.
The quality of projects is uneven, and platforms need to balance quality and quantity
Judging from the overall quality of the current online projects, the Magic Eden Launchpad market has not set too high a threshold for online projects. This operation method is maximized to expose projects with ideas, so that more projects have the opportunity to be seen by users, helping low-profile projects complete cold starts, and also attracting a wider group of users for the platform.
However, the disadvantages of this method are also extremely obvious, and the hidden danger is that the quality of the project is uneven. According to the statistics of the table above, at least more than half of the current online projects make the participating users in a state of floating loss, and as far as the investment itself is concerned, betting and participating is a conscious behavior of the user, and the platform can be released.
However, the market defaults that all projects that can launch Launchpad are projects after the platform competition and screening, if the project investment expectation has been lower than the market expectation, what motivation and confidence do users have to support the Launchpad market. Therefore, for the platform, it may lose users in the long run. And in this way, the significance of the Launchpad market to provide exposure for more high-quality projects and tap high-quality projects no longer exists.
In addition, the few high-quality projects mentioned above create more trading volume and market capitalization, 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, it cannot only take the project side to pay and the quantity as the only criterion, but should control the quality of the online project, and be more strict and cautious about the project competition to achieve a win-win situation for users, project parties and trading platforms.
Take stock of the innovative projects launched by Launchpad
The pain point solved by Crowdsurf of NFT Diamond Hand Done Credentials is to set standards for NFT loyal users. So far, NFT holders have not been rewarded for their diamond hands, and projects don’t have an easy way to identify their most loyal investors. Crowdsurf sets a new standard for diamond hand investors to be the most loyal holders recognized by the community. This is done by allowing users to increase their Crowdsurf Investor Rating (CIS) by staking their Diamond Hands NFT on the Crowdsurf platform, and subsequently gain access to new projects, whitelists and other rewards.
At the same time, Crowdsurf’s Pledge Analytics data product provides partners with analytics about their communities and shares a percentage of B2B revenue with all Crowdsurf NFT holders. 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 the completion of company milestones. Its founder, Matt, spent 8 years at the Big Four Audit and Consulting firms before leading finance teams in the crypto startup space. Responsible for Crowdsurf’s vision and drive in finance, operations and production. Dan is its co-founder and CTO, a senior software engineer, and served as COO of Arweave in the early days.
WADE Friends & Family
WADE Friends & Family, a brand collaboration, is a collaboration between IPX and CRIPCO. CRIPCO is the IEO project of the exchange FTX, CRIPCO builds an ecosystem around NFT in IP branding, aiming to create an ecosystem where NFT issuers and their holders can work together to build IP brands, so as to help “consumers” complete the transformation to “creators”, change the development mode of NFT IP brands, and promote “creator economy” innovation. IPX dominates the IP business online and offline (formerly LINE Friends) and is the world’s first emoji ownership company, with annual sales of $200 million. At the same time, in addition to the existing retail field, through its own IP brands Brown & Friends, BT21, WDZY, etc., and global partners Netflix, Tencent, Big Hit, etc., to launch a variety of media and entertainment content, expand the unlimited possibilities of brand IP.
Users who hold WADE F&F FT will have the opportunity to receive a limited edition Fashion Partnership NFT at the monthly Global Top Brand Partnership, which will always be available to redeem physical fashion goods services, with the winner choosing to retain or destroy to redeem physical goods. WADE F&F holders will also receive airdrops and whitelists from multiple NFT projects planned to work with. There are also invitations to IRL music and fashion events (Wade is a musician with an extensive network of fashion/music in Web2).
KB, CEO of WADE F&F FT, and Creative Director and Program Host of WADE Project, launched “Emotionally UnAvailable” with Chen Guanxi, a brand that partnered with Nike and was introduced by Kwon Ji-yong “PEACEMINUSONE”. WADE F&F will use 30 percent of the proceeds from the sale of NFTs for collaboration, 50 percent for marketing, and 20 percent for staffing and teams.
Featured brand Anybodies: Tay Keith partnered with Anybodies to launch a limited edition collection, inspired by Tay Keith’s iconic DOA brand. By casting and redeeming physical sweaters, users get exclusive Tay Keith drops by tapping on the NFC chip in the sweater, such as 3D avatars, free live event tickets, Tay Keith Beats and more.
Anybody uses a combination of NFT, NFC, and blockchain technologies to create unique products that provide true physical to digital experience, ownership, and utility. To unlock digital experiences and airdrops, holders must interact with the NFC built into the sweater through a smartphone device. All holders can unlock and receive monthly airdrops on a first-come, first-served basis by tapping on the NFC chip built into the sweater; Free VIP or backstage tickets for live events by co-artists; Enjoy drinks, gifts, etc. for free at certain venues and events
Anybodies plans to work with traditional brands, individuals, and more to help bridge the gap between Web 2 and Web 3. The Tay Keith x Anybodies airdrop is a partnership in itself. Anybodies has partnered with traditional brands like NIKE and local Web 3 brands like DeGods, and many others are ready to go.
80% of the funds raised through NFTs are used for sweaters and technologies needed to manufacture products, and 20% is used for development and indirect marketing costs.
KikiVerse, which focuses on the Watch2Earn concept, is a multi-chain project that is currently based on the SOL and ETH ecosystems. It used ThreePointZero Studio to develop the watch2earn animated series. Beginning in December 2021, Kiki combines art and music with over 1,200 hand-drawn features and over 100 fully hand-drawn animated characters. KikiVerse’s purpose is based on the concept of KikiVerse as a decentralized entertainment brand, open to collecting and adopting the opinions and ideas of the community, and building together with the community.
Cyborg is the founder of KikiVerse, and she is well 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, a former founder of The OpenDAO and one of the most experienced investors in the NFT space, having invested in more than 1,000 projects.
EZU, which focuses on the Wear2Earn concept, is the first ETH chain Launchpad project on Magic Eden and is a sister project to Psychedelics Anonymous, built by Voltura Labs. Psychedelics Anonymous has traded more than 39,000 ETH since December 2021. The wear2earn model created by EZU rewards consumers for wearing products with NFC chips and is associated with smart contracts with AR capabilities, so that EZU will be able to understand when and where users are wearing the dress.
The data privacy obtained by EZU is controlled by the user, and each user can set whether they want to share the data or not, and the level of data they want to share, which will correspond to the number of tokens that the user receives as a reward. Similar to Psychedelics Anonymous, all holders of EZU will have free access to mental health treatment, guidance, educational resources and crisis support from third parties as part of Voltura Lab’s philanthropic mission to people with mental health conditions.
Lewis Gale is the strategy officer for the project; Megan Kaspar, responsible for product strategy and lead advisor, is a member of the Red DAO and a director of Firstlight. Ann McFerran, a product consultant, is an entrepreneur of innovation and entrepreneurship in the beauty industry, a Forbes 100 female founder under the age of 30, founded Glamnetic with $50 million in revenue in its first year and partnerships with Ulta, Sephora, Nordstroms and Urban Outfitters.
Women of Mars
The Women of Mars in the Game section is the second-generation collection of Miners of Mars, hand-drawn by world-renowned Marvel cartoonist Aleksa Gajic. Women of Mars play an important role in the Miners of Mars ecosystem because Women play an important role in the game’s ecological model, and Women hold a variety of roles and positions: police, botany, politics, flight control, mechanics, medical personnel, robotics, teachers, etc., which are critical to future reproductive mechanisms.
Both Miner and Women of Mars can use OSM tokens to mint Kid of Mars (only 3,000 in total). Holding Miner, Women, Kid of Mars and OSM tokens at the same time, there will be a chance to summon SemiGodz, and only 700 SemiGodz will rule the Mars universe with 7 kings.
Aleksa Gajic is a world-renowned cartoonist and film director, and the illustrator of Marvel Comics Scourge of the Gods. Tomo Vukasovic aka is responsible for UX design. Uros Petrovic is an author, speaker, and NFT collector who has sold more than 450,000 books worldwide.
Utility APE builds practical and secure tools in Web3 that provide enhanced gameplay and security services for Illuvium, Nekoverse, Cheddar Block Games, Kikiverse, and more. Holding a Utility APE on its servers can implement a discount on Utility APE. Gen1 Elite holders can get an additional 1-week free trial and a $450/month pass. Based on the rarity of NFTs, holders earn 2-3 times more from buying real items like NFTs and tokens in stores than non-holders. Full access to all Utility APE robot features, including NFT sniper tools and price alerts. It is currently under development.
50% of the proceeds from the sale of NFT funds are used for product development: including robot features, ease of implementation and ease of use; 30% for marketing, partners and community; 20% for project strategy and supervision, as well as the management of implementation; 10% of this is for team development.
Onyx, CEO of Crypto-native since 2015, is also an entrepreneur with experience in more than 20 successful project launches, leading teams of more than 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 for top consulting firms, raising over $10 million in funding and serving as an advisor to several successfully exited web2 and web3 technology startups. VmpyreSol is the CTO and 10 years of software development experience, a qualified cybersecurity expert with expertise in social tools, and the founder of BotsOnDisplay. Nicolo is a design executive with over 14 years of experience in the entertainment industry, working on projects at Disney, Sesame Street, Tisto and Deadmau5. Tyler is a product manager with 15 years of product owner and project manager experience in financial software, crypto investments, and gaming products, with expertise in managing large remote delivery teams. The official Twitter followers are 25K and the Discord users are 15K.
NFT tool Helio is a Web3 payment platform that currently has more than 1,000 projects, builders and users using Helio to accept e-commerce, subscriptions, Discord payments, plugins and other features. Its mission is to accelerate the adoption of Web3 payments and reduce the cost of online payments to zero. The utilities of holding Helions NFTs are:
HelioX subscription: Hold HelioX NFT in your wallet to access HelioX, including 0% Tx fees, APIs, brand checkouts, plugins, Discord bots, token payments, and more. Any future customer of Helio will either subscribe to 2 SOL/month to access HelioX or purchase Helions NFT on the secondary market, expanding the long-term, incremental demand for NFT as Helio grows.
Rewards for Helions DAO: The holder is a member of Helions DAO and it generates rewards (10% royalty, transaction, and subscription fee credits) from the operations of the NFT and Helio. Helions DAO pays 75 percent of the rewards to HODlers quarterly, and the remaining 25 percent of the rewards and about $50,000 in seed funding from Helio to the DAO are used to acquire treasury assets and organize community events to drive the value of the NINT
Helions plans to expand the platform to ETH in the fourth quarter of 2022 and launch the Web3 content creator paid platform to continue building more partnerships. NFT fundraising purposes: 50% for Helio R&D: team expansion, product development (9-month cycle), 30% for Helions marketing, art, content development and LP expenses, 15% for Helio SG&A expenses (sales, marketing, etc.), 5% for DAO funding and community events.
Jim is a co-founder and CTO with 25 years of experience building SaaS platforms and scaling engineering organizations to more than 200 people. He recently discovered a 1:1 NFT collector vulnerability and is one of the leading investors behind ExchangeArt. Stijn is CEO, a technology entrepreneur with 20 years of experience building B2B SaaS product and sales teams, and a record of revenue growth from $0 to $35 million. Jim and Stijn built, expanded, and exited two B2B SaaS companies for $600 million (ScanSafe: sold to Cisco for $2009 million, Wandera: $400 million in 2021).
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