With the rise of the GameFi ecosystem, the Web3 gaming platform created its own fundraising event, known as the Initial Game Offering (IGO).
Every new project needs funding to get off the ground. Most of the time, the money is arranged through some fundraising event. For example, when a private company goes public, it will host an Initial Public Offering (IPO), where it sells shares to the public to raise money.
Additionally, new cryptocurrencies will rely on Initial Coin Offerings (ICOs), where a limited amount of the original cryptocurrency is sold to the public to raise the funds needed for development. And now, with the rise of the GameFi ecosystem, the Web3 gaming platform is creating its own fundraising event, known as the Initial Game Offering (IGO). Tag along as we reveal all the important information you need to know about IGOs and how they work.
How do IGOs work?
IGO allows interested audiences to invest in upcoming game projects at their inception. The goal is to push the project from the initial stage to the development stage and to completion.
The advantage of financing game projects through IGOs is that stakeholders do not have to convince venture capitalists to finance the project. However, they can source money directly from the interested stratum of the general public.
The main difference between ICO and IGO is that in the latter case, investors get access to assets in the game over and above the original token. Buyers are incentivized to pump money into IGO through lucrative offers like mystery boxes, rare in-game collectibles, limited edition skins and accessories, special weapons, etc.
This item is always an NFT that can be used to access the game early; reward for being one of the first supporters of the new project. In addition, the tokens obtained in the process are cryptocurrencies that can be traded or traded through exchanges.
If the game is good, the NFT and crypto received through IGO will appreciate over time and leave investors with a lot of profit. On the other hand, the funds received from IGO will help the development team take the project to the next stage.
How to join IGO:
IGO is hosted through ‘launchpad,’ which is nothing more than a support platform that handles the entire fundraising process. The method is very similar to IPO, where you have to subscribe, register or register IGO first. If you are selected for the IGO event, you will need to create a crypto wallet and connect it to the launchpad.
From there, each launchpad will have a slightly different process, and should guide you through the final few steps. Some popular IGO platforms are Binance NFT, Seedify Fund, GameFi, Trust Pad, Enjinstarter, etc.
Things to keep in mind before investing in IGO:
· Research IGO launchpad before. Make sure it’s a working and well-established platform with past success to back up its claims. Launchpad should provide all important information about previous IGOs and current projects, such as the time it takes to get full funding and the total funds raised for various projects in the past.
· Leadership and project development teams must have valid credentials to lead projects to completion. If they have executed such a project in the past, it is not only a feather in their cap but also a guarantee for potential investors.
· In many cases, the community of crypto enthusiasts also created the project and discussed its potential after completion. Make sure it’s a fraternity of like-minded people who share the same views on the project as you.
Furthermore, if the initial investors in the previous project finance other successful projects, it instils more confidence in the masses.
· Finally, it would help if you also have a look at the GameFi project whitepaper. Make sure the model has a clear working model and a detailed section on project tokenomics. Also, look for smart contract audits to ensure that the platform has been tested and there are no hidden back doors for developers to drain investor funds and disappear.
IGO is a great way for project developers to source funding for their gaming platform. If the project takes off, they also create wealth for investors. Therefore, IGO is a win-win. Make sure you research the project and the launchpad before putting down your hard earned money.