What is Initial Game Offering (IGO)?
An initial game offering is a method of funding used by blockchain game developers. It is a presale of tokens as opposed to an initial coin offering (ICO) because it only focuses on crowdfunding for the video game industry. Before the public auction, investors are given access to game tokens and in-game items at a reduced cost. Offering game assets for less is done so that money can be raised for the following stage, which could include game development, marketing, etc.
By making an early investment, investors can purchase game assets before the public auction for the lowest price, earning significant (5x–50x) returns and even more in the future. IGO is a brand-new concept for crowdsourcing in the blockchain gaming space that has the potential to advance crypto or NFT gaming. The crowdfunding approach aids in giving new game concepts and projects the proper exposure and introduction to cryptocurrency investors. In the past, a lack of funding has forced many excellent ideas to die and go unnoticed.
Key takeaways
An initial game offering is a strategy employed by blockchain game development teams to raise money for an early-stage game.
IGOs are similar to ICOs in that they are both vehicles for raising capital for new projects.
IGO launchpads are made to introduce new game projects built on various blockchains, including Ethereum, Cardano, and others.
How does an IGO work?
An IGO is a way to raise money for brand-new blockchain gaming ventures. IGO members buy-in and get early access to in-game benefits and game assets to support a game’s early development stage. Additionally, before the game is made available to the general public, these players can receive the tokens designed for it.
Skins, weapons, characters, mystery boxes, and accessories are among the items offered during an IGO. On the blockchain, these assets frequently exist as non-fungible tokens (NFTs). To play or access the game, you may need to use some of the IGOs’ resources.
Also Read: What Are NFT Derivatives? How Are They Different From Original NFT?
Difference between IGO and ICO
Emerging cryptocurrency companies have the chance to analyze the market before releasing a particular product through an initial coin offering, or ICO. They also give developers the opportunity to raise funds to support and streamline the startup process.
An ICO is an IGO for emerging cryptocurrency organizations, to put it simply. An IGO, when viewed from a different angle, is essentially a platform ICO for video games.
The ways in which an IGO and an ICO operate are different, despite the fact that they share many similarities:
The product
The item that each of these two companies sells may be the most significant distinction. A typical ICO markets a product with very limited usability. An IGO, on the other hand, offers digital goods that are compatible with the ecosystem of video games.
Investment return
Investors in ICOs receive very little to nothing in the way of early returns. Contrarily, the main goal of offering IGOs is to give potential investors early access to gaming assets that they can rely on and expect to generate a sizable return on their investment.
Financing phase
Before receiving funding from an IGO, a specific video game is frequently in its final stages of development. But with an ICO, that’s not the case. Instead, to gauge the product’s viability and the general public’s opinion or interest, crypto organizations frequently release the product early.
Difference between IGO and IDO
Another popular method of raising money in the crypto gaming industry is an Initial DEX offering or IDO. It is used to promote upcoming blockchain projects, much like an IGO. The scope of IGO and IDO differ from one another.
An IDO is any project that is launched on a decentralized exchange (DEX). With an IGO, however, the investment is specifically targeted at creating a blockchain game.
IDO-announced tokens are immediately listed on the decentralized exchange from which they were launched. The projects also guarantee instant token liquidity. However, it is important to note that an IDO lacks a thorough and effective review process. As a result, it has a higher percentage of subpar and fraudulent projects than an IGO.
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What Is Initial Game Offering Launchpad?
The initial game offering (IGO) launchpads serve as a meeting place for investors and new gaming concepts. IGO Launchpad helps a brand-new blockchain game idea develop when it is in its early stages and in need of funding. The fact that anyone can participate in the IGO launchpad because it is open to all investors is one of its biggest advantages. A gaming startup or game developer no longer needs to approach VCs or meet with investors to secure the funding necessary to finish the project.
Listing game tokens or in-game assets with the IGO launchpad can help a gaming startup get funding. Depending on the Launchpad platform, investors can either stake their tokens or lock them in a pool. Prior to the public auction, game assets are offered to investors at the lowest price. By using this technique, the gaming startup can raise money, and investors stand to gain significantly if the game develops after it is released. Before potential investors can take part in crowdfunding, a project must satisfy various requirements established by the launchpad platform. IGO launchpads are made to introduce new game projects built on various blockchains, including Ethereum, Cardano, and others.
Popular Initial Game Offering Launchpad
- Seedify Fund
- Game Fi
- TrustPad
- Game starter
- EnjinStarter
How Does an IGO Launchpad Function?
Gaming startups can use the Initial Game Offering (IGO) launchpad to sell game tokens or in-game items at a discount in order to raise money for their upcoming project. Gaming startups can list their newest gaming project with them on an IGO launchpad. A gaming project won’t be listed on the IGO launchpad platform until all the prerequisite information and paperwork have been completed.
Before investing, participants or investors can view the upcoming gaming project on the platform and learn all the specifics. Prior to the game’s release to the general public, participants can purchase in-game items like skins, weapons, mystery boxes, or game tokens at a discounted price.
Investors can make significant gains as soon as the game goes live because the value of these in-game assets rises over time. The fact that some of these in-game items are necessities for players to access or engage in the game is their greatest advantage. Consequently, if the games become well-liked in the future, investors will have a huge earning potential.
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Key Characteristics of Our IGO Launchpad Platforms
- Instant Trading
- High Liquidity
- Feasible
- Multi-Chain Compatibility
- Know Your Customers
- Transparency
- Cross-chain compliance
- Multi-Wallet Support
Pros and Cons of IGO
Pros of an IGO
- No need to give up equity
- Funding future games
- Quick funding
- Complete control of your game
Cons of IGO
- An all-or-nothing scheme
- Quite challenging
- Risky
Things to Consider Before Purchasing an IGO
The launchpad platform
For an IGO to be successful, the launchpad platform is essential. Along with the sum of money previously raised and the length of time needed for the project to receive funding on the platform, it is important to examine the history and success rate of the platform in launching IGOs.
The team behind the project
It would be helpful to know if the team has prior experience completing projects of this nature and what their success rate has been as this is a crucial consideration. Investors will be more confident in a team that has a proven track record of success.
Community
The majority of well-known crypto projects have a thriving community supporting them. Therefore, if you’re looking to purchase IGO, look for a community where you can find like-minded individuals who share your perspective on the project. The community might take the shape of a discussion board on a social media site.
Initial investors and partners in the project
You can get a sense of the likelihood of the project’s success by looking at the original investors and partners. The likelihood of the initial investors succeeding in the current project increases if they have a track record of funding profitable projects in the past.
Conclusion
Blockchain IGOs show to be an effective way to raise money for projects involving cryptocurrency gaming. Additionally, they might generate enough buzz before a game’s release to guarantee an audience. A video game in its IGO stage is typically found when it is nearly finished.
This is partially due to dishonest developers in the past who misled investors by using false advertisements and inaccurate descriptions of their investments. The IGO business model consequently frequently encounters a high level of disbelief, despite the fact that developers also frequently release updates and refunds. IGOs are still a practical and well-liked choice for developers looking to launch a project. The IGO market is expanding. IGOs are launching more and more high-caliber projects, gradually establishing themselves as a mainstay in cryptocurrencies and blockchain gaming.
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Source: https://coingape.com/education/initial-game-offering-a-beginners-guide-on-launching-an-igo/