What Is Initial Game Offering(IGO)? - Blockchain App Factory

The novel fundraising process designed specifically for NFT gaming platforms is known as Initial Game Offering (IGO). Using the IGO launchpad, investors may invest in ongoing NFT gaming initiatives. When the game goes online and becomes successful, the investor might expect a large return on investment. The method is identical to that of an initial coin offering (ICO), but what distinguishes it is the use of Non Fungible Tokens.

It is a type of crowdfunding event for the game industry and new businesses. In exchange for their investment in the project, investors receive project tokens. That has distinct characteristics such as their fraction of the market and some extra perks. As the number of users on the gaming platform grows, so does the shareholder's revenue.

How does an IGO work?

The Initial Game Offering (IGO) is a methodology of raising funds for blockchain gaming enterprises. It's comparable to an Initial Coin Offering (ICO), except instead of cryptocurrency tokens, IGO participants may gain early access to in-game assets while also contributing to the game's early development. Mystery boxes, characters, skins, accessories, weapons, and other goodies are frequently supplied by IGO. Most of the time, they are NFTs that are necessary to access or play the game.

There are several IGO launchpads on the market right now, including Binance NFT, BSCPad, TrustSwap, and EnjinStarter. Varied launchpads have different arrangements for an IGO, but investors are often required to acquire the launchpad platform's native token in order to participate.

After earning the necessary tokens, players must place them in a pool for a set amount of time. They will then get the project's token or NFTs based on the number of tokens locked, according to the allocation mechanism.

Binance NFT selects reward winners using a subscription system, ensuring that all participants have an equal opportunity to get NFT assets from the IGO. Participants may be obliged to keep or stake the acquired gaming tokens or NFTs for a period of time before trading them on the market.

IGO Benefits 

There are several benefits to the Initial Game Offering (IGO) fundraising model, which has grown popular among many mobile game producers. The Initial Game Offering allows game makers to raise funding without relying on publishers or venture capitalists. It has the following advantages:

There is no need to hand over the company's equity. Publishers typically demand on owning a percentage of your firm in exchange for their investment, which means you may be giving up part control of your company, which cannot happen with an IGO; rapid finance. If you have a compelling proposal and a large enough social media following, an IGO can give all of the funding you want in a short period of time and without the strings that venture capitalists may impose.

control of your game An IGO allows you to keep 100% of the company's stock, which means you get to make all development choices.

future game financing Because it is much simpler to raise money in increments when you are still creating an audience, IGO allows you to seek funding for many projects at once. An IGO financing can also pave the door for greater use of the Initial Public Offering prospectus, which allows firms to list themselves on public stock markets through the Initial Coin Offering prospectus.

Closing thoughts

IGOs provide a novel approach for game creators to fund their games by utilizing blockchain technology. While IGOs can be a useful method for investors to assist early-stage gaming ventures, they also involve substantial financial risk. Before putting your money in danger, you should always do your homework.