When a new blockchain gaming project is launched, more capital is required to develop the project further. This capital is raised by organising an “Initial Game Offering” (IGO).
What is an IGO (Initial Game Offering)?
So, IGO is a fundraising event for blockchain gaming projects. It is launched through specialised platforms known as launchpad platforms. Buying an IGO gives the investor the chance to invest in a gaming project early.
It is similar to an initial coin offering by which the new crypto projects raise capital.
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The landscape of Initial Game Offering (IGO)
After buying an IGO, apart from crypto asset tokens, the bidders can obtain access to in-game assets while exploring the early-stage development of the game. During an IGO, the assets on offer range from mystery boxes, weapons, virtual land, characters, skins, or other accessories. These assets are in the form of Non-Fungible Tokens (NFTs) required to play the game. NFTs create a way for gamers to own the in-game assets truly.
Owing to the huge popularity of gaming, several launchpad platforms have surfaced in the market, facilitating the fundraising by the blockchain gaming projects. Some prominent ones include Binance NFT, BSCpad, Trustswap, Enjinstarter and Kickstarter.
Different launchpad setups have different requirements, but most of them want the buyer to purchase the launchpad platform’s native token before one can buy an initial game offering. The gaming project can also host the initial game offering on its website.
The platforms use a subscription mechanism to select the winners to get NFTs. This ensures that all the participants get an equal opportunity to get an NFT during an IGO. Sometimes, the participants have to keep the NFTs received in their account for some time before they begin to trade.
Read About: How NFTs Work And Where They Get Their Value?
Should you buy an Initial Game Offering?
The basic reason to buy an IGO is that, as an investor, you want to be involved in a project right from the development phase. You are investing in a project without knowing what the end product will look like. If the game turns out well, the initial investors are in for a big gain. However, if the project does not turn out to be as popular, then there is every chance that you may lose your money. Thus, buying an IGO is a risky decision, and you must analyse your risk tolerance levels and do your research before you decide to buy an IGO.
Things to Keep in Mind before Buying an IGO:
- The launchpad platform: The launchpad platform is crucial for the success of an IGO. The history and success rate of the platform in launching IGOs must be analysed, along with the amount of money previously raised and the time required for the project to achieve funding on the platform.
- The team behind the project: This is an essential factor, and it would be good to know if the team has previous experience in delivering such projects and what has been the success rate. A team with a successful track record will instil confidence in potential investors.
- Community: Most popular crypto projects have a vibrant community rooting for them. So if you are looking to buy IGO, check for the community where you can find like-minded people having the same view about the project as yours. The community can be in the form of a discussion forum on social media platforms.
- Initial investors and partners in the project: A look at the initial investors and partners in the project will give you an idea about the chances of the project’s success. If the initial investors have a history of investing in successful projects in the past, they are more likely to succeed in the current one.
Conclusion
The blockchain gaming industry is relatively new and fast-growing, and enough opportunities are expected for the gamers and game developers to make money. Buying an initial game offering looks like a great way to access a project early on and earn a significant return; however, it is crucial to analyse the blockchain gaming project before buying an IGO. Also, one must look out for the risks associated with it.
