What is IGO (Initial Gaming Offering)? Learn about the Blockchain industry fundraising trend
What is IGO?
IGO stands for Initial Game Offering, which is the latest trend in the crypto world. The concept is similar to other terms like ICO or IDO. The only difference is that in IGO, the platform hosts NFT-base or token-based gaming projects as their in-game currency and rewards.
Problems of the traditional Gaming segment
Currently, traditional game publishers are facing some structural limitations such as:
- Lack of trading area, liquidity and in-game item exchange.
- There is no insurance for the player's precious items in the game.
- In most traditional game models, players and developers have an opposite relationship. While one side is always trying to improve the game to better exploit the players, the other side always wants to take advantage of diversity to increase the enjoyment of playing.
IGO is the trend of Blockchain Gaming industry
Recently, the rise of the game Cryptokities or Axie Infinity has created a fever in the Gaming industry. Since then, we can not deny the great features that blockchain brings to game publishers, it can be mentioned as:
- The scalability of the Blockchain will support the settlement of a large number of transactions of a gaming platform. At the same time, all transactions are recorded on the ledger in a public and transparent manner.
- The items in the game are priced, creating an easy item trading environment, stimulating the in-game economy to be more vibrant, increasing the attractiveness of the game.
- With the token of the game being listed on major exchanges, thereby increasing the liquidity for the token.
- Players can easily buy and sell in-game items. Blockchain will reduce transaction time and transaction service fees.
- With the usecase of the game token gradually giving governance to the community, players will have a more real sense of ownership.
How is IGO different from ICO, IDO?
In essence, the forms of IGO, IDO or ICO are the same, with the same purpose of releasing the project's token to the community for the first time. However, all 3 forms have some differences:
- ICO (Initial Coin Offering): This is the first form of coin issuance of the cryptocurrency market. ICO is different from IPO in the traditional market in that: the project can raise capital from the community even though the product has not been fully developed, sometimes it is just an idea presented in the whitepaper.
- IEO (Initial Exchange Offering): As the name implies, this form is implemented on the platform of an exchange. In contrast to an ICO, an IEO is managed as well as a reputable representative by a cryptocurrency exchange for a startup seeking to raise funds with the issued tokens.
- IGO: as mentioned above, IGO issues the main token in the game. Investors can put money into game projects offered by IGO startups and expect a significant ROI when that game project is launched on major crypto exchanges or becomes popular in the market. gamer community.
The Most Successful IGO Platforms
With the rise of gaming blockchains, IGO is becoming the next giant in the field of Crypto. Games like Axie Infinity (AXS), CryptoBlades (SKILL) and Alien Worlds (TLM) have been very successful in becoming the choice of thousands of daily active players.
With this massive popularity, several IGO launchpads have sprung up, among them are:
Gamefi (GAFI)
GameFi was one of the first launchpads to introduce the concept of IGO services. Currently, there are two IGOs directly on the GameFi platform, namely $KABY Pool and Deathroad IGO. Both games are offering their initial tokens to players who can stake them or use the tokens to enhance their blockchain gaming experience.
Enjinstarter (ENJINSTARTER)
Enjinstarter is another IGO launchpad that provides the community with unique projects and features including yield farming, NFT-based platform and DeFi platform. The project is built on Enjin's Jumpnet, a platform for game developers to build communities and run marketing campaigns to promote game projects.
Gamestarter (GAME)
Gamestarter is a blockchain-based crowdfunding platform that helps indie game developers raise funds by pre-selling unique in-game assets in the form of NFTs. Similar to Kickstarter's proven business model. Customers will only be charged when their fundraising goal is reached. In addition, Gamestarter provides a marketplace for trading digital assets from successfully launched games. Gamestarter also gives NFT holders the ability to sell and get real value from their assets, which is one of the key elements that is essential for the NFT ecosystem to thrive.
The risks and opportunities of IGO
The main purpose behind conducting IGO is to provide early access to in-game assets that users can invest in and expect future returns on. With that said, IGO is also a good opportunity to generate a return on investment. Buying tokens early in the knowledge that they will be listed shortly on the markets with good liquidity can create a number of opportunities.
However, not all IGO tokens will increase in value once they start trading. Before you want to invest in any IGO platform or projects in the game development stage, there are a few things to consider:
- Consider the benefit of the holder in holding the original token. Check the benefit percentages and compare them with other IGOs.
- Check if the IGO launchpad ensures compliance with the correct allocation.
- Evaluate the ROI of the platform's previous IGOs. A good launchpad will have a history of high ROI and profitable projects.
Summary
IGO is a form that is not too strange in the community but still brings new things. If you are an investor with the desire to find potential and profitable projects, or simply want to participate in the colorful cryptocurrency market, you should definitely not ignore the form of IGO.
