What Is An Initial Game Offering (IGO)?

What Is An Initial Game Offering (IGO)?

Initial Game Offering (IGO) has been well-liked among cryptocurrency investors because of GameFi's growth. IGO enables you to pre-purchase NFTs or tokens for blockchain games in their early development stages.

Introduction

Most frequently, launchpad platforms are used to arrange IGOs. Participants that invest through launchpads typically have to lock the platform's native token for a specific amount of time. Participants may be granted early access to the game's tokens or NFTs depending on the initiative. On decentralized exchanges and NFT markets, the tokens and NFTs acquired via IGOs may occasionally be exchanged outside of the game environment.

How does an IGO work?

In order to raise money, blockchain gaming firms use the Initial Game Offering (IGO) approach. Similar to an Initial Coin Offering (ICO), an IGO also allows users to assist the early development of the game while receiving early access to in-game assets. Mystery boxes, characters, skins, accessories, weapons, and other objects are frequently supplied as assets by IGO. Most frequently, they are NFTs needed to access or engage in the game.

Several IGO launchpads are available right now, including Binance NFT, BSCPad, TrustSwap, and EnjinStarter. IGO arrangements vary amongst launchpads, but often investors must buy the native token of the launchpad platform in order to participate. For instance, in order to engage in IGOs on Binance NFT, investors must have a particular quantity of BNB in their Binance Wallet.

After acquiring the necessary tokens, participants must lock them in a pool for a specific period of time. Depending on the allocation system, they will then get the project's token or NFTs based on the number of tokens frozen.

In order to ensure that everyone has an equal opportunity of earning NFT assets from the IGO, Binance NFT selects award recipients using a subscription mechanism. Before they may sell their obtained gaming tokens or NFTs on the open market, participants might need to hold onto them for a while.

Differences between IGO, ICO, IEO, and IDO

The cryptocurrency industry offers a variety of ways to raise money. Initial Coin Offerings (ICO), Initial Exchange Offerings (IEO), and Initial DEX Offerings are some of the more well-known types (IDO). Although they are all comparable forms of crowdsourcing, they work somewhat differently.

Initial Coin Offering (ICO)

The first method of cryptocurrency funding was the initial coin offering (ICO). It enables teams working on blockchain-based projects to raise money using cryptocurrency. Ethereum first employed the ICO technique in 2014, and it remained a very popular form of crowdfunding up to the beginning of 2018. Events like ICOs might provide a practical means for projects to obtain funding during their first phases of development. Our article What Is an ICO (Initial Coin Offering)? contains further information about ICOs.

Initial Exchange Offering (IEO)

The main distinction between an Initial Exchange Offering (IEO) and the other offers is that an IEO is hosted by a cryptocurrency exchange rather by the project team directly. Both the initiative and IEO participants can gain from partnerships with trustworthy cryptocurrency exchanges. Before being hosted on an exchange, the projects often have to undergo a stringent vetting process. The IEO project team may expand its user base throughout the exchange by doing so. A well-known illustration of an IEO platform is the Binance Launchpad.

Initial Dex Offering (IDO)

Initial Dex Offering (IDO) is a decentralized exchange's host for an ICO (DEX). IDOs were developed to address the flaws in the ICO and IEO models. For instance, it often costs less for projects to get listed compared to IEOs because the project's token is launched on a DEX. Additionally, IDOs offer quick token liquidity, allowing tokens to be listed virtually immediately after IDO completion.

They don't always go through a careful due diligence procedure, though. Due to the possibility that certain IDO projects may be of inferior quality or have a dubious reputation, this might raise total risks. Additionally, you should exercise caution when dealing with IDOs because many of them ended up being frauds that stole money from investors.

Closing thoughts

IGOs provide a cutting-edge means for game makers to employ blockchain technology to finance their games. IGOs pose a large financial risk in addition to being a useful means for investors to fund gaming companies at an early stage. Always do your research before putting your money in danger.