By Steve Burnett
The cryptocurrency industry has grown in many ways and many aspects have been added to it. First decentralized finance, which offers investors a way to earn extra for staking their assets, through lending, and trading of assets on decentralized exchanges.
Then came non-fungible tokens (NFTs) which are digital or tokenized versions of things like pieces of art, music, pictures etc. The NFT space has also seen significant growth, and it is now worth billions of dollars. Indeed, NFTs have greater potential applications in tokenizing bigger things like landed properties and many others.
Another booming addition to the crypto space is the gaming aspect. This is where gaming fans can play games and earn rewards. There are several gaming projects already in the crypto space, and new ones are coming up quickly because of the high demand for such projects.
Gaming projects come into existence through a process called an initial gaming offering, or IGO for short, and they provide investment opportunities. In this guide, we will discuss what an IGO is, how it works and how you too can participate in it and be a part of the project.
What is an IGO?
An IGO is simply an avenue for gaming projects to raise funds to support the launch of their projects. They are usually carried out through launchpads, and participants can gain early access to the game’s tokens or NFTs. Participants are then expected to lock the tokens for a period of time.
For some projects, the tokens and NFTs acquired from IGOs can be traded outside of the gaming ecosystem on decentralized exchanges and NFT marketplaces. IGOs work just like initial coin offerings (ICOs) which are for crypto projects.
How an IGO Works
IGOs give participants access to the project’s tokens and other in-game assets in exchange for their support of the project’s early development. In-game assets you can get from an IGO can be mystery boxes, characters, skins, accessories, weapons, and other items which are usually NFTs required to access or play the game.
As mentioned earlier, IGOs are carried out on a launchpad, and there are many out there, including Binance NFT, BSCPad, TrustSwap, and EnjinStarter. Which launchpad you use depends on the goals of your gaming project, because different launchpads have different setups for an IGO
They however generally require investors to purchase the launchpad platform’s native token to participate. For example on the Binance NFT launchpad, investors are required to have a certain amount of BNB token in their wallets to be eligible to participate.
They will then need to lock the BNB in a pool for a period of time. In return, they will be given the tokens or NFTs of the gaming project after the lock-in period elapses. The investors may be required to hold or stake the purchased gaming token or NFTs for some time before they can trade it on the market.
All the guidelines are strategies to ensure that the gaming project succeeds and gets off the ground, since that is the main aim of the IGO. By buying and holding or staking the gaming tokens or assets, you’re also supporting the project, which makes it a win-win.
How to Participate in an IGO
As stated earlier, you can participate in an IGO by first acquiring some of the native tokens of the launchpad and locking them for a period. You’ll then be given the gaming project’s tokens or NFTs based on how much of the launchpad tokens you bought.
However before doing this, you should always do your own research and ensure that the project is legit before investing your money in it, because there are many fakes and scams out there.
You can check the project’s website to see if they have clear plans for developing, and also if there are any reputable projects backing them up. If you can’t find this, you should not be in a haste to invest in such an IGO.
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