Little-Known Facts Of IGO (Initial Game Offering)
On November 4, 2021, Binance NFT Marketplace first introduced Initial Gaming Offering (IGO) which helps the exchange build gaming NFT asset trading platforms for both crypto and traditional games. One of the most controversial questions is whether this actually acts as a catalyst for the development of the future of NFT gaming, let’s find out.
Overview of IGO
It should first and foremost be made known the general function of IGO, and then its origin. IGO allows investors to pre-purchase a blockchain game’s NFTs or tokens at its early development stage. As for the origin, IGOs are genesis gaming NFT assets that launch either via auction, flat rate sales, or mystery boxes, from top gaming projects available exclusively on Binance NFT Marketplace.
IGOs can be conducted over several rounds, offering a different number of assets each round with a tiered price structure including core in-game assets such as early-access passes, weapons, characters, exclusive Binance cosmetics & skins, etc.
IGOs are usually organized through launchpad platforms. Typically, investing through launchpads requires participants to lock the platform’s native token for a certain period of time. Depending on the project, participants can gain early access to the game’s tokens or NFTs.
Why does Binance launch IGO?
Firstly, despite the growing popularity of NFT gaming accounting for more than 50% of NFT trading volume, many of these projects have struggled to find a dedicated hub to develop their game and community. Especially, with Steam’s recent ban on all blockchain, NFT, and crypto games from their storefront, the blockchain gaming space lacks an established game distribution platform to build a thriving fanbase and community.
Secondly, since NFT gaming now has its own commodity market, it is important to manage trading activities by Tokens, while the sale of Tokens can raise capital. Thus, Binance IGO drops provide the foundation for a gaming metaverse that connects high-quality blockchain games and NFT assets to the crypto community in the world.
Thirdly, Binance has a sense of ambition to increase exposure and hype for gaming projects not housed on the BNB Chain (former BSC).
What is IGO actually?
IGO is actually one of the variations of the Initial DEX Offering (IDO) which is one of the most popular fundraising methods. There are several fundraising methods in the crypto world including Initial Coin Offering (ICO), and Initial Exchange Offering (IEO), they are all similar, but there are certain differences in the way they operate.
- ICO (Initial Coin Offering): It allows blockchain-based project teams to raise funds through the use of cryptocurrencies from the community, which means not through a third party.
- IEO (Initial Exchange Offering): An innovative version of ICO, IEO is not hosted by the project’s team directly but within a cryptocurrency exchange such as Binance.
- IDO (Initial Dex Offering): Similar to IEO, except that the Coin will be listed on decentralized exchanges like PancakeSwap or Uniswap.
- IGO (Initial Game Offering): Similar to IDO, but dedicated to listing NFTs and Tokens of games on decentralized exchanges.
Once again, IGO is not that different from IDO. However, in the past time, IDO has revealed many problems as many IDOs turned out to be scam projects running away with investors’ funds. Since IDOs operate on DEXes, it does not always go through a rigorous due diligence process, leading to an increase in the overall risks as some IDO projects potentially have lower quality or a questionable reputation.
It is noticeable that there is no guarantee that IGOs will give a profitable return. Before committing, investors should always DYOR and consider the potential risks. Currently, there are a number of IGO launchpads on the market, including Binance NFT, BSCPad, TrustSwap, and EnjinStarter. Different launchpads have different setups for an IGO, but it usually requires investors to purchase the launchpad platform’s native token to participate.
It is understandable why Initial Game Offering has been a concern for many investors according to its genesis as core gaming NFT assets from top-tier gaming projects available exclusively on Binance NFT while providing the foundation for a gaming metaverse that connects high-quality blockchain games and NFT assets to the global crypto community. However, participants should make research to reduce the potential risks before committing to any IGOs.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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