Hi reader! Welcome back.
For our first-timers, this is your #1 source of information on anything crypto.
In today’s post, as usual, I am here to dissect yet another hot and exciting topic in the crypto space.
(Tip – something about raising funds for GameFi projects)
Cool right? 😎
With blockchain-based gaming gaining popularity daily, Initial Game Offering (IGO) is fast becoming a hot topic in the space.
You will learn what it means, how it works, and every other information about IGO.
Let’s quickly go over the major points I will be covering in this post.
Key Points
- What is Initial Game Offering (IGO)?
- How IGO Works
- IGO Launchpad
- Things to Consider Before Investing in IGOs
- Conclusion.
1. What Is Initial Game Offering (IGO)?
Initial Game Offering (IGO) is one of the ways blockchain-based gaming (GameFi) projects raise funds in their early stage.
GameFi – this combines the terms: gaming and decentralized finance (DeFi). It describes the integration of blockchain applications in the gaming sector for monetization purposes.
IGO can simply be said to be a crowdfunding approach for video games.
IGOs provide individuals with an opportunity to invest early in gaming projects that have the potential to offer huge returns after their launch.
As a reward, early investors may receive lucrative in-game assets and tokens at a considerable discount before the public sale.
The concept of Initial Game Offering (IGO) is similar to Initial Coin Offering (ICO), as they are both mediums for raising capital for new projects.
The only difference between IGO and ICO is that IGOs offer NFTs or tokens as their in-game currency and rewards instead of coins.
Offering gaming projects through an IGO enable developers to request funding from their audience directly.
Let’s go deeper into the workings of IGOs.
2. How Does IGO Work?
IGOs allow investors to pre-purchase a blockchain game’s NFT or token at its early development stage.
IGO participants have early access to game assets and in-game benefits as a reward for supporting the game’s early stage of development.
Assets offered during an IGO range from characters to skins, weapons, accessories, and mystery boxes.
Some of these assets offered during IGO are necessary items required to access or play the game.
Investors in blockchain games are rewarded for their investment with tokens that can be traded directly on a cryptocurrency exchange.
These assets and digital items like weapons and skins are saved as NFTs, with their information permanently printed on the blockchain.
Apart from the fact that Nonfungible tokens (NFTS) help keep track of in-game assets, they also provide gaming projects with considerable financial value.
Both the GameFi project’s in-game tokens and its NFTs can be bought or exchanged on an external marketplace or DEX.
Players can then swap their in-game currency and assets for established cryptocurrencies like Ethereum (ETH) or Bitcoin (BTC).
The tokens can also be swapped for stablecoins or a player may choose to trade a token for fiat currency.
With the information you’ve gotten so far, I know you’re already excited about exploring more.
Let’s now look at the platforms where these GameFi projects are hosted in the next section.
3. IGO Launchpad
An IGO launchpad, just like a crypto launchpad, is a platform that hosts a number of early-stage blockchain gaming projects.
It provides a medium whereby fundraising projects and investors can interact.
IGO launchpads provide their native tokens which interested investors can purchase and use to fund projects on the launchpad.
Investors can invest in gaming projects offered by IGO launchpads, with the hope of getting returns once the gaming project is launched on major crypto exchanges.
Typically, for any participant to qualify, they are required to lock the platform’s native token for a certain period of time.
Examples of IGO launchpads include:
The above list will be expanded in one of my future posts, so be on the lookout.
Click on any of the launchpads below to head to their official site.
Now that you have an understanding of IGOs, it might interest you to invest in one.
Below are a few things to consider to help guide your investment decisions.
4. Things to Consider Before Investing in IGOs
Investing in IGOs might seem like a great idea right now, but as with every investment, there are things to consider before committing your resources.
You should:
- Research and compare holder benefits of the native token with other IGOs
- Evaluate the ROI of the active IGOs offered on the platform. Launchpads with a history of good projects are likely to provide major returns on most of their upcoming projects
- Check for the value of the launchpad’s holder – a high holder’s value equates to a higher token valuation
- Find out the number of token generation events (TGE) of an IGO launchpad – the higher the better
- Check whether the IGO launchpad is providing guaranteed allocation.
- Look into any reputable investors or partners backing them
- Research the gaming project’s website or social platform for any clear plan or developmental structure.
Before making any investment, remember to always do your own research (DYOR) and consider the potential risks.
Let us summarize below, as we take a break for today.
6. Conclusion
We have come to the end of this post.
I believe you now have a fundamental idea of what Initial Game Offering (IGO) is and how it works.
You have learned that IGOs are one of the ways early crypto-based gaming projects raise funding.
Also, I listed several things to consider as a potential investor before investing in any IGO.
As we round up for today, it’s time to hear from you:
Have you participated in any IGO? How did it go?
Do you see more upcoming gaming projects adopting the IGO method?
Let me get your replies in the comment box below.
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Thanks for reading!!
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