The digital world is being made more and more captivating with the technological advancements in graphics and computation. The gaming sector is also heading forward to provide some fundamental incentives for players.
GameFi is an emerging crypto-gaming category, making the play a profession for individuals. So, the rise of GameFi is now introducing another phenomenon i.e. Initial Game Offering (IGO) which is gaining much popularity among investors. Let’s see what this concept actually is.
Initial Game Offering is basically about gaming projects based on blockchain technology and its main aim is to raise capital fund and is usually organized through launchpad platforms.
If you’re familiar with ICO which is Initial Coin Offering, the participants collect tokens in it but here, in IGO, they collect in-game assets i.e. mystery boxes, characters, weapons, and some other items like NFTs and game tokens.
The gaming tokens and NFTs acquired from IGOs can also be traded outside the gaming sector on decentralized exchanges and NFT marketplaces. After you acquired the tokens, now you need to lock them in a pool for some time period.
The investment is used to develop the game and facilitates the entire IGO. Some of the other popular fundraising methods in the crypto sector are Initial Coin Offering (ICO), Initial Exchange Offering (IEO), AND Initial Dex Offering. Let’s have a short look into these as well.
ICO is also a blockchain-based method that raises funds using cryptocurrencies, used by Ethereum back in 2014 and remained very popular for crowdfunding until 2018.
ICO offers a very effective way for the tokens to get financial aid during the early development stages.
The difference between IEO and other offerings is that IEO is not hosted by the project’s team directly but partnering with reputable crypto exchanges gives benefits to the project and IEO participants.
The most common and popular IEO platform is the Binance Launchpad.
Initial Dex Offering (IDO) is an ICO that gets hosted on a Decentralized Exchange (DEX) to tackle the shortcomings of the ICO and IEO models. IDOs provide the quick liquidity of tokens to list them instantly.
They act as a tool for businesses to engage their communities in an economy to enrich their products and services and allow them to make smart business decisions regarding their assets.
The rapidly growing blockchain gaming industry and IGOs are an impressive opportunity for the game developers to get benefits. This concept is still in its infancy so one should be aware of scams and risks and take every step smartly.
We hope this article is going to help you and take wise steps while adopting for IGOs.