What is Initial Game Offering (IGO)? | OpenPad Web3 Investment
Exploring a state-of-the-art way of decentralized initial offering for gaming projects
Initial Game Offering (IGO) is a method for gaming projects to raise capital through blockchain technology.
IGOs aim to provide early access to gaming assets that early investors can rely on and expect a return on investment (ROI) in the future via the game's development.
Several successful IGOs launchpads have emerged in the gaming industry, including GameFi (GAFI), Binance NFT, Enjinstarter, and others, each having different setups for an IGO.
Most IGOs launchpads require participants to lock the platform’s native token for a certain period before gaining early access to the game’s tokens or NFTs.
An Integration of DeFi into Gaming: GameFi
GameFi is a combination of gaming and decentralized finance where a player earns in-game cryptocurrency tokens for completing certain missions in blockchain-based games. Players can then trade the earned tokens on a centralized or decentralized exchange.
Generally speaking, play-to-earn blockchain games with financial incentives are referred to as GameFi; typically, users go through the various game levels, engage in player battles, and complete tasks to gain cryptocurrency and NFT incentives.
Most blockchain games allow players to move virtual goods outside of the game's virtual realm, in contrast to traditional video games. Players can now trade their goods on NFT markets and their cryptocurrency profits on cryptocurrency exchanges.
All over the world, play-to-earn games are becoming the next trend in gaming as the model is interestingly attractive because it creates extra incentives, other than passion and fun, for gamers to engage in gaming. Play-to-earn has grown considerably over the past few years, with the possibility of earning rewards and making a sizable partial income through NFT sales. Success stories such as Axie Infinity, among others, have further given momentum to P2E.
The metaverse has further lightened up blockchain gaming; the ability to play games and have a real-time, immersive experience added to the thrills for gamers.
GameFi combines gaming with elements of decentralized finance. Hence, GameFi is a game-integrated network (GIN) that drives a decentralized economy inside games. GameFi is a mix of traditional game monetization and a fresh new way to earn cryptocurrency rewards.
Fundraising x Gaming: Initial Game Offering
Initial Dex Offerings (IDO) serves as one of the several fundraising methods in the crypto world for Web3 projects. However, one of the latest trends in the space, Initial Game Offering, creates an avenue for individuals to invest in blockchain gaming projects at an early stage that has the potential to offer huge returns after their launch. In addition, IGOs are innovatively designed for game developers to fund their projects through blockchain technology.
Game-based launchpads are generally responsible for organizing an IGO event and matching project owners with the investor community. For eligibility and investment purposes, participants must lock the platform’s native token for a certain period before gaining early access to the game’s tokens or NFTs. NFTs or tokens are used as an in-game currency and a reward mechanism for investors.
Hence, an essential function of an IGO is to raise capital for blockchain gaming projects. Other similar methods of crowdfunding include Initial Coin Offering (ICO), Initial DEX Offering (IDO), and Initial Exchange Offering (IEO). IGOs are similar to ICO – Initial Coin Offering and IDO – Initial DEX Offering; it avails to only pre-selected buyers a presale of tokens before they are listed on an exchange. The only difference is that IGOs are designed explicitly for crypto games, while ICOs and IDOs can be for any token or project.
IGO is an initial game offering (IGO) that lowers the barrier to entry for participating retail investors and grants them the opportunity to secure in-game assets and tokens before they are made available to the public.
A game offering (IGO) makes it easy for anyone to become a retail investor in crypto gaming and get their fair share of the pie. By holding their tokens, you can trade, earn interest, or even use them on exclusive offers.
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IGO Launchpad Examples
Several popular and successful IGOs launchpads have emerged within the crypto gaming industry, including GameFi, Binance NFT, Enjinstarter, amongst many others. Each has different setups for an IGO.
GameFi operates on a ranking system to reward platforms using the Launchpad. The four different tiers include Rookie, Elite, Pro, and Legend. The GameFi ecosystem requires its investors to stake increasing amounts of the protocol’s native token, $GAFI, before getting early access to the ranks. Only the top tier has guaranteed allocation.
Enjinstarter, on the other hand, operates on a first-come-first-serve (FCFS) basis. Participants’ allocation depends on factors like Token Boost, Time Boost, and whether they are members of the Community Allocation Pool (CAP), the Guaranteed Allocation Pool (GAP), and the duration of holding ERC-20 tokens. Enjinstarter operates on three tiers: Multiverse, Metaverse, and Universe, with each level being different in stats related to weights, allocation multiplier, and the minimum allocation percentage. Overall, the IGO launchpad offers unique projects and features, including yield farms, NFTs-based platforms, and DeFi platforms.
The future sure looks promising, with the potential of blockchain technology to pave a significant breakthrough in the metaverse. IGOs, in a nutshell, provides an innovative system for individuals to earn more significant incentives through staking and early-stage investment. But to make the most of it, participants must invest a great deal in launchpad tokens.
However, it is essential to DYOR before making any commitments for an investment to pay off. A good preference is a launchpad project with good action plans and a executive team. Other things to look out for include launchpad tiers, allocation type, holders’ benefit, project history, platform ROI, and community base, amongst other factors.
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