What is an Initial Game Offering? Fundraising takes a variety of forms, and that’s just as true in the crypto world as it is in the milieu of traditional finance.
Some aspects between these two worlds appear quite similar; the Initial Public Offering of the traditional finance world has its counterparts in crypto in the form of Initial Coin Offerings, but also in practices like Initial Game Offerings or IGOs. What is an IGO and how does it work? You’ll likely need to purchase some crypto or NFTs specific to the IGO you’re interested in, hold the token(s) for a minimum amount of time, and participate according to the rules of engagement on that platform.
Initial Game Offering (IGO) Explained
Game projects on the blockchain that need to raise funds may hold an IGO to do so. These offerings are typically held in launchpad platforms and, as mentioned above you may be required to invest in the launchpad’s crypto or tokens in order to participate. Such launchpads at work at press time include:
- Binance NFT (aka Initial Game Offering Binance)
- Game Zone
- Red Kite
There may be minimum time required to hold the tokens, but there may also be options to buy in and participate immediately depending on the rules of the platform. No two IGO options may be exactly alike, your experience may vary.
When you buy into an IGO you may be provided early access to the game’s NFTs, lootboxes, weapons, or other in-game tools that can enhance play. You may be required to use a specific type of NFT to play. You may also be subject to Know Your Customer verifications or requirements depending on the platform. There may be in-person or virtual events you qualify to participate in as the owner of a token or NFT associated with the IGO, and you may be offered early or exclusive NFT drops or other perks.
Some Launchpads May Be More Interoperable Than Others
Some launchpads hosting IGOs may be single-ecosystem operations, while others may support multiple options including Ethereum, Avalanche, Phantom, and Polygon. Playpad, mentioned in the list above, is an example of a launchpad that supports multiple ecosystems including Binance Smart Chain, Ethereum, and Avalanche.
Some IGOs May Be More Fair Than Others
What do we mean by this? Some IGOs may be more user-friendly than others. For example, when it comes to IGOs, Binance NFT uses a subscription program to make sure its users get a fair chance to participate.
This sort of mindfulness about equal access may not be present in all platforms, it’s a good idea to compare the user-friendliness of your favorite launchpad to others operating successfully in the space. Are you missing out, or getting the most for your money and time?
Types of Games
There are plenty of popular games that have run IGOs. Axie Infinity held a token sale on Binance and has since developed into an impressive earner in the space with more than a billion dollars in sales in 2021.
In-game earnings are achieved by fighting players and non-player characters, completing missions, and there’s a secondary market where players can trade with fellow adventurers in-game. Other growing names include Alien Worlds and CryptoBlades.
Should You Participate In An IGO?
There are a number of variables that can help you answer that question. Unfortunately one of those variables has to do with the in-game experience. Will you actually enjoy the game play or will the experience leave you wanting more (and not in a good way?)
Every NFT, token, or other crypto investment opportunity should come with the caveat that there are no guarantees of a return on investment. It’s crucial to research the team behind the IGO, its reputation, what other investors are saying about the opportunity, and whether or not the IGO is making realistic promises or wishful-thinking-type pronouncements about the future.
Always do your own research, don’t give in to FOMO, and study the details before you spend any cash, crypto or real-world. You will want to know how scalable the project is as well as how reputable the people behind it are; will there be high congestion or will you have an easy time taking part? The user experience will be just as important as the financials and the consumer-beware steps you should take with any investment.
Differences between IGO, IEO, ICO, and IDO
Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs), and Initial DEX Offerings (IDOs) are all similar methods of crowdfunding, but do have differences in the way they operate.
Joe Wallace has covered real estate and financial topics, including crypto and NFTs since 1995. His work has appeared on Veteran.com, The Pentagon Channel, ABC and many print and online publications. Joe is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News.