With the rise of GameFi, Initial Game Offering (IGO) is gaining popularity among crypto investors. IGO allows you to pre-purchase a blockchain game’s NFTs or tokens at its early development stage. Initial game offerings (IGOs) provide individuals with an opportunity to invest in gaming projects at an early stage that have the potential to offer huge returns after their launch.
IGOs are usually organised through launchpad platforms. Typically, investing through launchpads requires participants to lock the platform’s native token for a certain period of time. Depending on the project, participants can gain early access to the game’s tokens or NFTs.
In some cases, the tokens and NFTs acquired from IGOs can be traded outside of the gaming ecosystem on decentralised exchanges and NFT marketplaces.
Continue reading to learn more about IGO, how it functions, IGO in NFTs, and how to participate in its launchpads! But first, let’s quickly discuss GameFi.
What Exactly is GameFi?
An initial game offering (IGO) is a form of video game crowdfunding. IGOs make it easier for retail investors to get involved and provide them the chance to get their hands on in-game items and tokens before the general public.
GameFi mixes decentralised finance (DeFi) and gaming. The phrase refers to both the initiatives and the play-to-earn games that comprise the crypto gaming industry. In virtual environments created by GameFi projects, users can complete objectives in blockchain-based games to win in-game tokens.
Native tokens for the games are fully cryptocurrencies in and of themselves. They are not merely virtual goods with no real-world market value. These cryptocurrency tokens are obtained by players, among other things, by completing in-game quests. Then, the tokens can be traded on a decentralised cryptocurrency exchange (DEX) or a centralised exchange.
All GameFi projects have DeFi at their core. DeFi elements are frequently included into blockchain gaming projects’ gameplay. In the GameFi ecosystem, functions like token exchanging, yield farming, staking, and mining are ubiquitous. For this specific purpose, a percentage of the total token supply for the games is frequently set aside in a treasury.
What is an Initial Gaming Offering?
The financial success of crypto gaming projects has increased significantly. A few well-known blockchain games have been valued at millions of dollars. Because of the low entrance barrier and financial rewards, developers keep raising the bar for the quality of blockchain gaming projects they publish.
As previously indicated, a blockchain game team may use an IGO to raise money for an early-stage game. Early backers might get valuable in-game items and tokens at a significant discount before the general public sale in exchange.
Launchpads for Initial Game Offerings (IGOs) are the newest buzz in the crypto space, and the idea is similar to that of Initial Coin Offering (ICO). Only in IGOs are gaming projects hosted on the platform that use NFTs or tokens as their in-game currency and awards.
Investors can expect a high return on their investment (ROI) after the gaming projects supplied by IGO launchpads are listed on significant cryptocurrency exchanges or become well-known in the expanding gaming community.
IGOs are distinct from initial coin offers (ICOs) because they are primarily geared toward the gaming sector. IGOs allow developers to directly approach their audience for money for their video game ideas. The blockchain gaming industry has expanded significantly as a result of the increased interest in this kind of launchpad.
How an IGO Works
In order to raise money, blockchain gaming projects use the Initial Game Offering (IGO) approach. Similar to an Initial Coin Offering (ICO), an IGO also allows participants to assist the early development of the game while receiving early access to in-game assets. Mystery boxes, characters, skins, accessories, weapons, and other objects are frequently supplied as assets by IGO. Most frequently, they are NFTs needed to access or engage in the game.
Several IGO launchpads are available right now, including Binance NFT, BSCPad, TrustSwap, and EnjinStarter. IGO arrangements vary amongst launchpads, but often investors must buy the native token of the launchpad platform in order to participate. For instance, in order to engage in IGOs on Binance NFT, investors must have a particular quantity of BNB in their Binance Wallet.
Participants must lock their required tokens in a pool for a predetermined amount of time after purchasing them. Then, based on the number of tokens locked and the allocation method, they will receive the project’s token or NFTs.
Binance NFT chooses award winners by a subscription system so that everyone has an equal chance of receiving NFT assets from the IGO. Participants occasionally have to hang onto their purchased gaming tokens or NFTs for a while before they can sell them on the open market.
IGOs in NFTs
Players can acquire in-game tokens, get power-ups, and get special things just like in any other video game. When playing blockchain games, players are rewarded with tokens that can be exchanged for real money on a cryptocurrency exchange. For both established and emerging blockchain gaming businesses, non-fungible tokens (NFTs) have significant financial worth.
Assets in games are easier to track with NFTs. Digital objects, such as skins and weaponry, are kept as NFTs, and the information about them is forever recorded on the blockchain. Players who use GameFi NFTs actually own their in-game possessions. Every item acquired, purchased, or created in-game is recorded as an NFT on the blockchain.
The assets can’t be altered by other parties if they are kept as NFTs. These resources are important to the game and can be purchased or traded on a public market just like any other NFT.
Both the in-game tokens and the NFTs of the GameFi project can be exchanged on a DEX. After that, users can exchange their in-game money and items for well-known cryptocurrencies like Ethereum (ETH) or Bitcoin (BTC).
Additionally, stablecoins can be exchanged for GameFi tokens. An alternative is for a player to exchange a token for real money. In any case, the money they acquired while playing the game is now theirs to trade and is not just an item connected to the video game.
Video games with in-game marketplaces have always had tokens. What GameFi modifies is how simple it is to swiftly and legally turn these assets into cash.
These in-game tokens are earned by players, who then spend them on new items like costumes, potions, and weapons. A moment’s notice allows for the sale of GameFi project tokens outside of the game.
Investing in an IGO Platform
In order to give early investors access to gaming assets they can rely on and expect a sizable return on investment in the future, the major goal of giving IGOs is to do just that. IGOs could appear like such a wise investment, but there are some factors to take into account before investing in any IGO platforms or projects that are in the initial game offering (IGO) stage:
- View the native token holder benefits. Compare the benefits % to those of other IGOs.
- Verify the IGO launchpad’s ability to offer guaranteed allocation. This may be more expensive than IGO launchpads that rely on a lottery system, but allocation is guaranteed there.
- Analyse the platform’s active IGOs’ returns on investment. A launchpad with a track record of successful ventures will probably deliver significant profits on the majority of its prospective projects.
- Look at the holder value for the launchpad, which serves as a performance indicator for any IGO launchpad. A greater token valuation results from a high holder value, which suggests that investing in that IGO would be worthwhile.
- Verify the launchpad’s total number of token generating events. A greater number of events suggests that the platform makes an effort to arrange worthwhile events in order to raise its overall rating.
What is an IGO Launchpad?
Investors and innovative fundraising ventures can communicate through launchpads. Many early-stage blockchain gaming initiatives are hosted on an IGO launchpad. Investors buy the native token of the IGO launchpad and use it to finance donations to the selected IGOs.
Participants who want to invest in the project must either stake their tokens or lock them in a pool, depending on the launchpad platform. Following that, participants may obtain in-game tokens or NFTs needed to play the game. GameFi, Seedify Fund, TrustPad, and BinanceNFT are a few well-known IGO launchpads.
How to Take Part in the IGO Launchpads
Each IGO launchpad has a unique procedure. Typically, the launchpad is initially connected to a wallet in the process. The investor must next choose an IGO to invest in and a tier that corresponds to the investment’s value.
The launchpad determines the precise instructions for carrying out these processes. Some launchpads are game-centric. Others provide blockchain games in addition to other initiatives. Any blockchain, including Ethereum, Cardano (ADA), or BNB Chain, can host an IGO launchpad. Each launchpad has unique requirements for new projects and a different application process for prospective investors.
Choosing to invest in IGOs and IGO launchpads is similar to choosing any other investment. IGOs provide a cutting-edge means for game makers to employ blockchain technology to finance their projects. IGOs pose a large financial risk in addition to being a useful means for investors to fund gaming companies at an early stage. You must determine if the IGO launchpad is reputable and intends to support significant gaming ventures in the future.