How IGOs Work and Why They Are Changing the Game

The term IGO (Initial Gaming Offering) has become the new trend revolutionizing the funding of video games in the crypto ecosystem.

In essence, an IGO is the mechanism used by blockchain-based gaming projects to raise funds, offering you the opportunity to invest in an early stage of their development. In exchange for your investment, you acquire game tokens or NFTs at a preferential price. This transforms you from a simple player to an owner of digital assets, with the potential to obtain great profits if the game takes off in the market.

So, imagine you participate in the IGO of a fantasy game. Instead of just buying the game, you invest and receive a “Legendary Hero” NFT and $1,000 game tokens at 1 cent each.

• You use your Hero NFT to play and earn more tokens.
• If the game becomes very popular, the demand for its tokens and NFTs increases. Those tokens you bought for 1 cent are now worth 10 cents, multiplying your initial investment by ten! Furthermore, your Hero NFT, now a rare and coveted asset, can be sold on the secondary market to other players for a significant sum.

In itself, this transforms you from a simple player to an owner of digital assets. It’s your moment to not just play, but to be part of the creation of the future of gaming and benefit directly from its success.

If you are interested in knowing how to go from being a player to being the owner of your digital assets, stay and I will explain everything to you. Get ready, because this is the new way to win with gaming!

How do IGOs work?

We are clear that an IGO is a method for blockchain video game projects to raise capital. And that participants in an IGO can obtain early access to the video game’s assets while supporting the initial development of the game.

Furthermore, the assets offered by IGOs often include mystery boxes, characters, skins, accessories, weapons, and other items. In most cases, these are NFTs required to access the video game or play it.

Now, the process of an IGO generally occurs on specialized platforms (called launchpads).

1. Selection and Launch. The IGO reviews its team, its technology, its market potential, and its gameplay.
2. Requirements and Preparation. To be able to participate in the sale, the platform will ask you to “lock” or “stake” an amount of its own tokens for a period of time.
3. The Lottery and Allocation. Because these sales are usually very popular, platforms use lottery systems or tiers to distribute the slots.
4. The Final Investment. Once you obtain your allocation, it’s time to execute the purchase! You send the crypto requested by the platform and, in exchange, you receive the new game tokens at a very low price. Most of the time, you don’t receive all the tokens at once.
5. The Launch and Release. The gaming project launches its tokens on public exchanges and its value begins to be determined by supply and demand. Furthermore, the game itself is launched for people to start playing it.

In fact, the secret of IGOs is in being an investor in Stage 4 before the rest of the world enters Stage 5.

Token Launch and Offer Phases

The launch of the tokens purchased during an IGO is carefully managed in two phases to guarantee market stability.

1. The Exclusive Sale:Investors acquire a large amount of tokens at a fixed and very low price through the launchpad.
2. The Unlocking and Listing:Where the acquired tokens become liquid and are integrated into the market.

For example, imagine you participate in the IGO of a strategy game where the assets are NFTs of virtual land.

• You use your allocation in the IGO to buy an NFT of a “Rare Plot of Land” for a price of $500. You become one of the first landowners in the game.
• The game is launched successfully. People need land to build and play, but the number of rare plots is limited.
• Therefore, it is announced that only rare plots will be able to host the highest-yield structures in the game.
• The demand in the secondary market causes the minimum price of a “Rare Plot of Land” to rise to $5,000.
• If you decide to sell your Rare Plot of Land NFT to a new player. Then you will have multiplied your initial investment, just for having the vision to invest in the IGO before the massive demand entered the market. This is the power of digital ownershipthat IGOs offer you.

Participants in the IGO

1. The Creators. The team of developers and designers who are creating the blockchain video game.
2. The Launchpad. It is the trusted intermediary that makes the sale possible and secure.
3. The Investors. Players, crypto enthusiasts, and investors who believe in the game’s potential.
4. The Exchanges. Where the assets come to have a price determined by supply and demand.

Benefits of Participating in an IGO

Participating in an IGO grants you the fundamental benefit of early investment: you buy tokens and NFTs at pre-sale prices, which generates an unmatched exponential profit potential if the project succeeds.

By doing so, you are empowered as a total owner of digital assets that you can freely sell on the open market, and you obtain exclusive access to advantages and premium assets within the game.

Advantages of Investing

• Early Access:Investors obtain early access to unique game assets.
• Appreciation Potential: These assets can appreciate in value, especially if the game becomes popular.
• Diversification: IGOs offer a new avenue to diversify investment portfolios within the cryptocurrency space.

Risks You Should Know

As with any investment, IGOs carry risks. The value of game assets is highly speculative and can be influenced by the success or failure of the game. Before investing in any project that is in its initial gaming offering (IGO) phase, some things should be considered:

• Consult the benefits for the holder of the native tokens. Check the profit percentage and compare it with other IGOs.
• Check if the IGO launch platform offers a guaranteed allocation.
• Evaluate the ROI of the active IGOs offered on the platform. It is likely that a launch platform with a history of good projects will provide great returns on most of its upcoming projects.
• Check the value of the launch platform holder, which acts as a performance metric for any IGO launch platform.
• Check the number of token generation events of an IGO launch platform. A higher number of events implies that the platform strives to host quality initiatives to boost its overall valuation.

Fraud and Scams

If you are going to enter this game, you must sharpen your sixth sense. There are some “red flags” that are so obvious they seem like a joke, but people, surprisingly, fall for them.

• The Anonymous Team. If the team doesn’t have the courage to put their name and career behind a multi-million dollar promise, they most likely don’t have the courage to stay and build the game.
• “Guaranteed” Profit Promises. In the crypto world, the only guaranteed thing is volatility. If someone promises you there is no risk, it’s because they are your main risk.
• The Speed of Hype vs. The Speed of Programming. Don’t invest in a promise, invest in a product. If they don’t have at least a playable prototype to show the community, the probability of them becoming a slow rug pull is very high.
• The “Unbalanced” Token Distribution. Look for projects where the team’s vesting is much longer (minimum 2-3 years) and where the majority of tokens are distributed to the community and game rewards.

Examples of Popular IGOs

IGOs are becoming increasingly popular in the cryptocurrency world due to the enormous success reaped by blockchain games. For example:

• Axie Infinity (AXS)is at the top of the blockchain gaming market. AXS generated over $1.3 billion in 2021 alone. It has a constantly growing daily player count of over 1000 users.
• Other blockchain games like CryptoBlades (SKILL), Alien Worlds (TLM), and Splinterlands (SPS) are not far behind.

Regarding Axie Infinity, players can earn SLP by participating in daily missions, player versus player (PvP) battles, and in adventure mode (PvE). This gives them the possibility to obtain income by exchanging their SLP for fiat currencies.

In essence, the main reason for an IGO is to allow individuals to invest in game assets from the beginning. By getting ahead of the curve, investors can expect a great return on investment after the launch.

How to Participate in an IGO?

Participating in an IGO through a launch platform involves some key steps:

• Account creation and wallet connection:Users must first create an account on the Launchpad platform and connect their digital wallet. This wallet is used for transactions like buying tokens or receiving game assets.
• Exploring available IGOs: Launchpads list upcoming IGOs and provide details about each game, its development team, and the assets or tokens offered.
• How to select an IGO to invest in: Investors can explore the listed IGOs and choose one that aligns with their interests and investment goals.
• Participation in the IGO: Once an IGO is selected, investors can participate by contributing funds to the project. In return, they receive game assets, tokens, or other benefits, as stipulated in the IGO.
• Post-investment tracking: After investing, participants can visualize the progress of the game’s development and the value of their assets through the Launchpad platform.

Interested individuals can stay informed about upcoming IGOs by following IGO launch platforms, gaming news websites, and relevant social media channels and forums in the blockchain gaming community.

Very importantly, as with any other investment, there is no guarantee that IGOs will provide profitability. Before committing to any IGO, you should always carry out your own research and consider the potential risks.

It is your moment to not just play, but to be part of the creation of the future of gaming. “Start today, take control of your digital future.”