Initial Game Offering (IGO)

An Initial Game Offering (IGO) is a fundraising method in the cryptocurrency world that is gaining popularity, especially in the realm of blockchain gaming. It is similar to Initial Coin Offering (ICO), but with a specific focus on gaming projects that utilize non-fungible tokens (NFTs) or tokens as their in-game currency and rewards.

Just like ICOs, IGOs allow investors to invest their funds in gaming projects and expect a significant return on investment (ROI) once the gaming project is launched on major crypto exchanges or gains popularity within the gaming community. However, IGOs differ in the sense that they are primarily targeted towards gaming enthusiasts and investors interested in the gaming industry.

The emergence of blockchain technology has revolutionized the gaming industry by introducing decentralized gaming ecosystems, play-to-earn mechanics, and unique ownership of in-game assets through NFTs. This has led to a surge in the popularity of blockchain gaming and subsequently, the rise of IGOs.

Some of the most successful gaming projects that have utilized IGOs include Axie Infinity (AXS), CryptoBlades (SKILL), and Alien Worlds (TLM). Axie Infinity, in particular, has experienced tremendous success, with over $1.1 billion USD in sales in 2021 alone. These success stories have further fueled the interest in IGOs and their potential for high returns.

To facilitate IGOs, several launchpads have emerged in the crypto space, offering a platform for gaming projects to launch their initial game offerings. These launchpads act as intermediaries between investors and gaming projects, providing a secure and regulated platform for investment.

Let’s take a look at some prominent IGO launchpads:

• GameFi (GAFI): GameFi is one of the pioneering launchpads to introduce the concept of IGOs. It offers a platform for gaming projects to launch their initial game offerings and provides early access to gaming assets. GameFi currently features two live IGOs, namely $KABY Pool and Deathroad IGO, both of which offer their initial tokens to gamers.
• Enjinstarter (ENJINSTARTER): Enjinstarter is another IGO launchpad that offers unique projects and features, including yield farms, NFT-based platforms, and DeFi platforms. Built on Enjin’s Jumpnet, Enjinstarter enables game developers to build communities and run marketing campaigns to promote their gaming projects.
• Gamestarter (GAME): Gamestarter is a decentralized IGO launchpad that focuses on providing early-stage funding for promising gaming projects. It aims to empower developers by offering a platform for launching IGOs and fundraising for their projects.
• Seedify.fund (SFUND): Seedify.fund is a community-driven launchpad that supports gaming projects, NFT projects, and DeFi projects. It offers a unique ecosystem with various benefits for investors, including early access to project tokens and community involvement.

Investing in IGOs can be an attractive opportunity for gaming enthusiasts and investors seeking exposure to the gaming industry. However, it is crucial to approach IGO investments with caution and consider a few factors before investing:

• Examine Holder Benefits: Take a close look at the benefits associated with the native tokens offered by different IGOs. Compare the percentage of benefits offered to holders and assess whether they align with your investment goals.
• Determine Guaranteed Allocation: Some IGO launchpads provide guaranteed allocation for investors, but this may come at a higher cost compared to launchpads that use a lottery mechanism. Consider your risk appetite and preferred investment strategy when evaluating the allocation process.
• Evaluate ROI of Active IGOs: Assess the return on investment of active IGOs offered on the platform. A launchpad with a track record of successful projects is more likely to generate significant returns on future projects. Look for transparency in project performance and consider the reputation of the launchpad.
• Assess Holder Value: Holder value serves as a performance metric for IGO launchpads. A higher holder value indicates a higher token valuation, suggesting potential benefits for investors. Consider the token economics and token distribution mechanisms to evaluate the long-term potential of an IGO.
• Consider Token Generation Events: The number of token generation events hosted by an IGO launchpad can indicate the platform’s commitment to hosting quality initiatives and enhancing its overall valuation. Look for active participation and engagement within the platform’s ecosystem.

Investing in IGOs and IGO launchpads requires careful evaluation, just like any other investment decision. It is crucial to conduct thorough research, assess the reputation of the IGO launchpad, and understand the gaming project’s potential for success. By considering these factors, investors can make informed decisions and potentially capitalize on the growth of the blockchain gaming industry.