Initial Game Offering (IGO) is a fundraising initiative that sprung forth from the onset of Web3 gaming platforms. 

Surely you have read or heard about Initial Coin Offerings (ICO). Crypto start-ups use ICO to attract investors and receive funds from them. The funds garnered from the limited tokens’ sale go to the further development of the new crypto coin or token. 

In similar fashion, the Initial Game Offering (IGO) uses the same principle. 

Let’s learn more about this new kind of digital fundraising event.

Initial Game Offering Mechanism Explained

Initial Game Offerings (IGO) raises capital for a new blockchain game. It involves not only crypto but in-game assets as well. IGO grants their investors early access to special in-game assets. This early pass is special because the assets given have higher value compared to the native token. 

The new game entices people to put in a lot of money because then, they will gain limited edition skins, collectibles, mystery boxes, weapons, and a whole lot more. 

These items act as rewards for buyers who become early stage supporters of the said project. 

Participating in an IGO Launchpad

A hosting platform called ‘launchpad’ holds many IGO events. This is where crypto and game projects connect with potential investors. If you want to join the launchpad platform, you need to register first and wait to be part of their shortlist. Then, after confirming your name on the shortlist, you’ll need to create a wallet and link it to the launchpad. 

After these two steps, you will choose a tier that corresponds to the value you want to invest. Lastly, you will select the IGO you want to invest in.

Each launchpad has their own instructions on how to participate. Furthermore, they have their respective criteria in accommodating new projects and distinct ways in receiving new investors. 

Some of the well-known launchpads are GameFi, Binance NFT, Enjinstarter, and Seedify Fund.

Read more CCB Blogs here. 

Initial Game Offering Investment Precautions

For gamers, NFT and crypto enthusiasts, IGOs can really be an exciting venture. But as with any other investment made in the crypto space, you need to be careful. Here are some tips to help you stay safe while exploring the fun world of blockchain games.

Research, research, and research. 

Nothing beats checking out something on the Internet. Just like Sherlock Holmes, you should have a keen eye for details and scrutinize every aspect of a blockchain-based game. Check the history of the company, the launchpad they’re using, if there are claims against them, and if they have positive reviews. 

Game Developer’s Credibility

The team behind the project should have legit credentials. Check if they have completed any projects in the past and which other ventures they were part of. This is an assurance that they will pursue the IGO as intended. 

Guaranteed Allocation

Pay attention to the allocation of an IGO. If there is no predetermined allocation then they follow a lottery model. Investors who receive the tokens and game assets are random at best. Not everyone who signed up gets to fully participate.

Launchpad Holder Value 

If a launchpad has a high holder value, it translates to a higher value for the token. This is a good metric for an investment. 

Initial Game Offering Inner Workings

The tokens earned in an Initial Game Offering will later become cryptocurrencies that can be traded or sold via crypto exchanges.

A successful IGO increases value over time and gives substantial gains to its investors. Consequently, developers can enhance the game using funds raised from the IGO. 

Summary

Initial Game Offerings are another creative way to promote the use of cryptocurrency while capturing the interest of both crypto and gaming enthusiasts. This proves that crypto is not just for finance-savvy people. It is flexible enough to take a new form and reach out to people with a different sphere of interest. 

However, remember that it is still not safe from scams and attacks. Practice DYOR (Do Your Own Research), invest only what you can lose, and manage your expectations. Crypto investing can now be fun through blockchain gaming projects but always prioritize financial safety.