An Initial Game Offering (IGO) is a crowdfunding method employed by blockchain game developers to raise funds for their early-stage games. In exchange, early investors stand to gain valuable in-game assets and tokens at a substantial discount compared to the public sale prices.
Unlike Initial Coin Offerings (ICOs) with a broader focus, IGOs are specifically tailored to the gaming industry. Developers use IGO as a direct means to seek funding from their audience, capitalizing on the growing interest in this type of launchpad, which has fueled significant growth in blockchain gaming.
The world of crypto gaming has witnessed a rapid surge in revenue, with some established blockchain games achieving multimillion-dollar valuations. Developers are drawn to the low barriers to entry and financial incentives, continuously elevating the quality of their blockchain gaming projects with each new release. According to research from DappRadar, blockchain games currently account for 52% of all decentralized app activity.
In 2021, blockchain-based games secured a cumulative funding of $4 billion, with an additional $1.1 billion raised in January 2022 for projects like Axie Infinity, Aavegotchi, and CryptoBlades, which boast thousands of daily active users.
The concept behind IGOs is straightforward: they allow investors and potential players to participate in blockchain gaming projects before the official game launch. While IGOs are typically associated with early-stage funding, some are open for games already in development. In contrast, others focus solely on the initial game concept, which may need to be completed.
One significant advantage of IGOs is their accessibility to all investors. Gaming startups no longer need to rely on convincing venture capitalists or a select group of high-net-worth individuals for funding. Instead, they can directly engage their target audience through an IGO, potentially securing the financial backing needed to bring their projects to fruition.
Understanding How IGOs Work
In an Initial Game Offering (IGO), game developers introduce a new cryptocurrency or token designed for use within their gaming environment. Investors can acquire these tokens using cryptocurrencies like Bitcoin, Ethereum, or traditional fiat currency. In exchange for their investment, investors receive a portion of the newly created game token, which can be utilized within the game, traded on cryptocurrency exchanges, or held as an investment.
The primary objective of an IGO is to secure funding for the development and launch of a new game. Leveraging blockchain technology, developers establish a decentralized platform that facilitates in-game purchases powered by the new game token. This innovative approach enables developers to sidestep traditional payment methods, allowing them to retain a larger portion of the revenue generated by the game.
To participate in an IGO, investors typically need to create an account on the IGO platform and undergo a Know Your Customer (KYC) verification process to confirm their identity. Once KYC is completed, investors can acquire the new game token using accepted cryptocurrencies or fiat currency.
Upon the IGO’s conclusion, the game developer employs the funds raised for the game’s development and launch. The new game token is the in-game currency for purchasing virtual items or trading with other players. If the game gains popularity, the value of the new game token may rise, enabling investors to sell their tokens at a profit.
IGOs offer several advantages. They provide game developers, particularly new or unproven ones, with alternative financing methods for their projects. Furthermore, IGOs enable developers to directly obtain funds from their target audience, a more effective approach than traditional fundraising methods.
Investors benefit from IGOs as well. By holding the new game token, they become integral to the game ecosystem, actively contributing to its success. This fosters a community around the game, potentially increasing its appeal and popularity.
However, it’s crucial to acknowledge the inherent risks of IGO investments. Game development is intricate, and success is far from guaranteed. Additionally, the value of the new game token may remain stagnant, potentially resulting in losses for investors. It’s essential to approach IGOs cautiously and conduct thorough research before investing.
Key Considerations for Investing in Initial Game Offerings (IGOs)
When considering investments in Initial Game Offerings (IGOs), it’s essential to take several factors into account during the initial game offering (IGO) phase:
Evaluate Native Token Benefits: Examine the advantages offered to token holders within the IGO. Compare these benefits and their percentages with those of other IGOs. Understanding the rewards you can expect is crucial before investing.
Guaranteed Allocation vs. Lottery Mechanism: Check whether the IGO launchpad guarantees allocation for your investment. Some platforms may offer guaranteed allocation but at a higher cost than those that use a lottery mechanism. Assess the risk and reward associated with allocation methods.
ROI of Active IGOs: Look at the Return on Investment (ROI) history of the active IGOs available on the platform. A launchpad with a track record of successful projects will yield significant returns on future projects.
Holder Value as a Metric: Consider the holder value of the launchpad’s native token. Higher holder value often correlates with a more valuable token, which can positively indicate potential returns on your investment in the IGO.
Number of Token Generation Events: Examine the frequency of token generation events on the IGO launchpad. More events suggest that the platform is actively hosting quality initiatives, which can contribute to its overall valuation and potential for successful IGOs.
Before investing in any IGO or IGO platform, assessing the benefits, allocation methods, ROI history, holder value, and the platform’s commitment to quality initiatives is crucial. These considerations can help you make informed investment decisions in Initial Game Offerings.
Exploring IGO Launchpads
An IGO launchpad is the meeting point for creative fundraising initiatives and eager investors. It’s a specialized platform designed to host a variety of early-stage blockchain gaming projects. Here’s how it works:
Investors first acquire the native token associated with the IGO launchpad. This token becomes their ticket to participate in funding the selected IGOs. The exact process varies depending on the launchpad platform:
Token Locking or Staking: Depending on the launchpad, participants may need to lock their tokens in a pool or stake them to contribute to a specific project. This commitment is akin to showing support for the project’s development.
Rewards in In-Game Tokens or NFTs: In return for their investment, participants typically receive either in-game tokens or NFTs. These digital assets are essential for engaging with and playing the game.
Noteworthy IGO launchpads in blockchain gaming include GameFi, Seedify Fund, TrustPad, and BinanceNFT. These platforms provide opportunities for investors to get involved in promising gaming projects and contribute to the growing world of blockchain gaming.
Developing an IGO Launchpad: A Step-by-Step Guide
Creating an Initial Game Offering (IGO) launchpad involves several critical steps, each requiring meticulous planning and execution. Let’s break down the typical development process for an IGO launchpad:
Market Research and Conceptualization
The journey begins with thorough market research and conceptualization. It is essential to identify your target audience, understand their preferences, and assess the competitive landscape within the IGO launchpad market.
Based on this research, you can conceptualize the platform’s features, functionality, and user experience, forming the foundation for your development strategy.
Platform Design and User Experience (UX)
Your IGO launchpad’s design and user experience play a pivotal role in attracting and retaining users. Crafting a visually appealing and user-friendly platform that offers a seamless experience for both investors and game developers is paramount.
This involves designing the platform’s user interface, creating user-friendly navigation, and ensuring compatibility with various devices and screen sizes.
Smart Contract Development
Smart contracts are the backbone of an IGO launchpad, responsible for creating, distributing, and managing game tokens and other assets. Building secure, efficient, and compliant smart contracts that adhere to industry standards like ERC-20 or ERC-721 for token issuance is critical.
These smart contracts govern the IGO process, including token sales, investor contributions, distribution, and management.
The backend of your IGO launchpad manages the platform’s logic and data processing. This includes handling various backend functions, managing user accounts, tracking investor contributions, and verifying transactions.
Building a robust backend infrastructure capable of handling a high volume of transactions while prioritizing customer data privacy and security is essential.
The front end of your IGO launchpad is where users interact, so it must be visually appealing, user-friendly, and responsive. Providing frontend elements that deliver a seamless and straightforward user experience, such as registration forms, token sales pages, and investor dashboards, is crucial.
Participating in an IGO on GameFi.org: A Simple 7-Step Guide
Regarding Initial Gaming Offerings (IGOs) on GameFi.org, the process is designed to be user-friendly and accessible to all levels of users. Here’s a step-by-step guide on how to join an IGO on GameFi.org:
Access GameFi.org: Start by visiting GameFi.org and locate the IGO section, usually represented by a rocket icon in the left sidebar.
Connect Your Wallet: In the top right corner of the website, you’ll find a green button labeled “Connect Wallet.” Click on it to initiate the connection process. You can choose your preferred network and related wallet to proceed. GameFi.org provides a main wallet for activities like staking and KYC and sub-wallets for specific purposes, such as participating in IGO pools on Solana networks.
Stake: GameFi.org offers a staking feature; you can access it from the left sidebar. The platform has different user ranks, such as Rookie, Elite, Pro, and Legend. To join IGOs, users typically need to achieve one of these ranks. More details on staking and unstaking will be provided on the platform.
KYC (Know Your Customer): KYC is mandatory for whitelisting applications. Once you’ve staked, you can proceed with the KYC process to apply for whitelists for specific projects. This is a one-time process. Click “Verify Now” and complete the required fields for KYC. Approval usually takes 24 to 48 hours.
Apply for Whitelist: After completing KYC, click the green “Apply Whitelist” button. Please note that the requirements for joining whitelists may vary for each project and are determined by the project team. Provide the requested Twitter and Telegram usernames, then click “Apply Whitelist.”
Swap Tokens: In the “Swap” tab within the IGO section, users can swap tokens. After checking the allocation and wallet balance, you can input the desired amount or use the “Max” option to auto-fill with your maximum.
Click “Approve” to initiate the approval process. Once approved, proceed to Step 2: Swap, where you specify the amount you want to purchase. Confirm your wallet and wait for the transaction to complete. You can monitor your purchased tokens in the Rounds Info area.
Claim Tokens: Finally, you can claim your tokens in the “Claim” tab next to the “Swap” tab. The “Claim on GameFi.org” button will turn green when it’s time to claim your tokens. A simple click is all it takes to claim your tokens.
Initial Game Offerings (IGOs) and their associated launchpads have emerged as a dynamic force within blockchain gaming and cryptocurrency investment. These platforms provide an innovative way for gamers and investors to engage with early-stage gaming projects.
Through IGOs, game developers raise funds by offering new tokens or cryptocurrencies integral to their gaming ecosystems. Investors, in turn, can purchase these tokens, contributing to the project’s development. This model facilitates funding for game developers and allows investors to become active participants in the gaming ecosystem, fostering a sense of community and engagement.
Moreover, IGO launchpads have unique development processes involving comprehensive steps such as market research, smart contract development, and user interface design. Each stage requires careful planning and execution to ensure the platform’s success.
However, it’s essential to acknowledge that while IGOs offer exciting opportunities, they also come with risks. The success of a game is uncertain, and token values can be volatile. Therefore, investors must conduct due diligence and evaluate IGO projects before participation.
IGOs represent a promising convergence of blockchain technology, gaming, and investment. They empower creators and enthusiasts in the gaming community, ushering in a new era of collaboration and innovation in the crypto space. As the popularity of blockchain gaming continues to soar, IGOs are likely to play a significant role in shaping its future landscape.