What is an Initial Game Offering?
An Initial Game Offering or IGO is a method of crowdfunding used by early-stage GameFi projects to raise funds. Through an IGO, gamers get early access to the game while helping the team to raise funds needed for the project.
An IGO is similar to ICO (Initial Coin Offering), but instead of cryptocurrency tokens, the early IGO investors are rewarded with early access to in-game assets such as the in-game currency and the NFTS required to access and play the game. These investors often buy into these projects with the hope that they will reap a significant ROI after the game is launched on major crypto exchanges or that the game gains massive popularity through its community.
To paint a clear picture of an IGO, let’s assume that you currently lead a team that is developing a new blockchain game. And you need to raise funds to sustain the research and development of the game. During a brainstorming session, one of the developers suggests that the project can raise funds through an IGO - where investors buy into the project in exchange for its early access rewards. The team votes overwhelmingly for this idea, and you are set to get the ball rolling, but first, you need access to many investors willing to participate in the IGO, and someone quickly suggests an IGO launchpad.
What is an IGO launchpad?
An IGO launchpad is a platform where investors discover and interact with early-stage projects seeking to raise funds. It is usually specific to early-stage blockchain gaming projects.
Currently, there are several IGO launchpads in the market. Popular examples are GameFi, EnjinStarter, Binance NFT, TrustSwap, BSCPad, Speedify, and many more.
These platforms have different setups for their IGO processes, but it usually requires investors to hold the native platform tokens of the launchpad they choose.
On the Binance NFT launchpad, investors are required to hold a minimum amount of BNB tokens to be eligible for participation. After obtaining the required tokens, investors lock them in a pool for a specific amount of time. Depending on the allocation algorithm, the investors are issued their rewards based on the number of tokens locked.
How to participate in an IGO launchpad
Participating in an IGO as an investor is quite easy, the process may differ slightly across the different platforms, but we trust that no matter the platform that you choose, you can easily navigate through it. We strongly advise that before you commit to any IGO project, you should do your own thorough research (DYOR). There are many fake projects created to scam potential investors, so always look twice. Comb through the project’s website and social media channels to check for a clearly stated project roadmap. Watch out for other reputable investors or partners of the project.
Here are some things to also consider before you invest in an IGO
- Check and compare the percentage holder benefit of the native tokens to other IGOs
- Be sure that the launchpad provides guaranteed allocation. If they run a lottery system, your reward allocation may not be guaranteed.
- Evaluate the ROI of IGOs offered on the platform. A launchpad with a history of good projects is likely to give major returns on new projects
- Use the launchpad’s holder value as a performance metric. If the holder value amounts to a higher token valuation, this signifies a good IGO
- Check the number of token generation events of an IGO launchpad. A higher number of events means that the platform seeks to host quality initiatives to boost its overall valuation.
Initial Game Offerings are an innovative way for blockchain gaming projects to raise funds and investors to support early-stage projects.
Participating in an IGO is as risky as any other investment, and there’s no guarantee that the project will be profitable. Suppose things do not turn out as expected. In that case, you risk losing your investment so, choose your projects carefully, evaluate your risk tolerance level and, seek the advice of a trusted financial advisor.