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Initial game offerings (IGOs) let people invest in gaming initiatives early, with the opportunity for large rewards after they are launched.
IGOs would be the next big thing in the crypto sector, thanks to the advent of blockchain gaming. Thousands of people play games like Axie Infinity (AXS) every day. With over $1.1 billion in sales in 2021, Axie Infinity is topping the pack. While Axie Infinity has released its $AXS inaugural token sale on the Binance Launchpad, the Smooth Love Potion ($SLP) token is the primary source of revenue for users in the game. On marketplaces like Binance, players may convert $SLP to fiat.
What Is an IGO?
IGO launchpads are the most recent trend in the crypto industry, and the premise is identical to that of an Initial Coin Offering (ICO). The sole distinction is that IGOs offer gaming projects that use NFTs or tokens as in-game cash and prizes.
Back in the day, you had to pay for games. You did not receive your money back after you quit playing. With the introduction of NFT games and Play-to-Earn games, players may now be compensated for their time.
It functions similarly to an ICO. An ICO project invites customers to make early investments in a new token at a cheap cost in the hopes that it will increase in value after the project starts.
When a developer wishes to create an NFT game, they first register it on the IGO launchpad, a site where crypto games can be found and played.
The listing will usually include information on the game and what it has to offer, the native token, and its pricing. Users interested in investing in the game can do so by acquiring IGO tokens, which will help support the project.
How to Participate in an IGO?
As previously stated, on IGO launchpads, you can find IGo projects. Each of these platforms has significantly different incentive schemes and financing processes, but don’t worry. Most of them are relatively simple to learn if you have any gaming experience.
On Seedify, for example, there is a Tier system that pays you as you progress through the levels. When you opt to invest in a game, you buy native tokens on the blockchain of that game. As you do so, Seedify will award you with SFUND, a governance coin that allows you to purchase products and even create your IGOs.
You’ll notice several IGO game names with the First Phase designation as you scroll down the page. It is the project’s early stage, and it is seeking investment. Before investing, make sure to read up on all accessible information on the game.
IGO game titles with accomplished Phase 1 will demonstrate how far the project has progressed. A vast pool typically suggests that the game is famous or supported by a respected firm.
You can still buy tokens throughout Phase 2, but it will be more costly because everyone is hoarding their coins, driving up the price.
Most crypto game launchpads will have similar parameters, albeit the governance tokens may differ.
Should you invest in an Initial Game Offering?
The primary rationale for purchasing an IGO is that you, as an investor, want to be part of a project from the beginning. You’re putting money into a project with no idea what the finished result will look like. If the game succeeds, the first investors will profit immensely. However, if the project is not as popular as expected, you may lose your money. Thus, purchasing an IGO is a dangerous decision, and you should assess your risk tolerance and do research before making the purchase.
Things to Consider Before Investing in Any IGO Platform
The primary goal of issuing IGOs is to provide immediate access to gaming assets on which early investors may rely on a high ROI in the future.
IGOs may appear to be a beneficial investment; however, before participating in any IGO network or projects at their initial game offering (IGO) phase, you should consider the following factors:
Analyze the Launchpad Platform
The launchpad platform is critical to an IGO’s success. You must examine the platform’s record and success rate in establishing IGOs, the amount of money already obtained, and the time necessary for the project to secure funding on the platform.
The project’s team consists of the following individuals: This is an important consideration, and it would be beneficial to understand if the team has it.
Assess the Project’s Initial Funders and Partners
A glance at the project’s early funders and partners will indicate the project’s possibilities for success. If the initial investors have a track record of investing in successful initiatives, they are more successful in the present one.
It has a More Significant Portion of Events
Examine an IGO launchpad’s number of token generating occurrences. Many events indicate that the platform seeks to organize high-quality initiatives to increase its overall worth.
Evaluate the ROI (Return Of Investment)
Analyze the ROI of the active IGOs available on the site. A launchpad with a track record of successful projects will likely deliver significant returns on most of its future ventures.
The Project’s Management Team
It is an important consideration, and it would be helpful to know whether the team has prior experience executing such projects and their success rate. Potential investors will have faith in a staff with a proven track record.
Examine the Percentage of Benefits
See the native token holder perks. Examine the proportion of benefits and compare it to other IGOs.
Community
Most popular cryptocurrency projects have a thriving community behind them. So, if you want to acquire IGO, seek a community where you can meet other individuals who share your enthusiasm for the project. The community might take the shape of a social media discussion forum.
Final Words
The blockchain gaming business is pretty new and rapidly expanding, with plenty of potential for profit for gamers and game producers. Purchasing an initial game offering appears to be a terrific method for gaining early access to a project and making a substantial return; nevertheless, it is critical to research the digital gaming project before purchasing an IGO. Also, one must be aware of the risks involved.