Abstract

With the rise of GameFi, initial game offerings (IGOs) are becoming increasingly popular among cryptocurrency investors. IGO allows you to pre-purchase NFTs or tokens during the early development stages of blockchain games.

Introduction

IGOs are usually organized through the Launchpad platform. Investing through Launchpad typically requires participants to lock up the platform’s native tokens for a period of time. Participants can obtain game tokens or NFT in advance based on the project. Sometimes, tokens and NFTs obtained from IGOs can be traded on decentralized exchanges and NFT markets outside of the gaming ecosystem.

How do IGOs work?

Initial Game Offering (IGO) is a financing method for blockchain game projects. IGO is similar to an initial coin offering (ICO), but in addition to cryptocurrency tokens, IGO participants can also obtain in-game assets in advance and support early development of the game. The assets provided by IGO usually include blind boxes, characters, skins, accessories, weapons and other items. In most cases, these NFTs are required to enter or play games.

Currently, many IGO Launchpads have been launched in the market, including Binance NFT, BSCPad, TrustSwap and EnjinStarter. The IGO settings of different Launchpads vary, but investors are usually required to purchase the native tokens of the Launchpad platform to participate in the investment. Taking the IGO in Binance NFT as an example, investors need to pre-deposit a certain amount of Binance Coin (BNB) in their Binance wallet to be eligible to participate in investment.

After obtaining the required tokens, participants need to lock them in the fund pool within a certain period of time. According to the distribution algorithm, investors will then receive project tokens or NFTs according to the number of locked tokens.  

Binance NFT uses a subscription mechanism to select winners, giving all participants equal opportunities to obtain NFT assets through IGO. Participants are sometimes required to hold or stake purchased game tokens or NFTs for a period of time before they can be traded in the market.

Initial game offering (IGO), initial coin offering (ICO), initial exchange offering (IEO) and first decentralization The difference between Exchange Offering (IDO)

There are several methods of raising funds in the cryptocurrency field. Methods such as Initial Coin Offering (ICO), Initial Exchange Offering (IEO) and Initial Decentralized Exchange Offering (IDO) are more popular. Their crowdfunding methods are similar, but they work differently.

Initial Coin Offering (ICO)

An Initial Coin Offering (ICO) was the first crypto Monetary financing methods. In this approach, blockchain-based project teams raise funds through the use of cryptocurrencies. As early as 2014, Ethereum adopted the ICO method. Until early 2018, ICO was still a very popular crowdfunding method. ICO activities can provide an effective way for projects to obtain financial support in the early stages of development. To learn more about ICOs, please read ourWhat is an Initial Coin Offering (ICO)? 》Popular science articles.

Initial Exchange Offering (IEO)

The key difference between an Initial Exchange Offering (IEO) and other products is that IEO It is not hosted directly by the project team, but is conducted on the cryptocurrency trading platform. Both projects and IEO participants benefit from partnering with a reputable cryptocurrency trading platform. Most projects must undergo strict review before being hosted on the trading platform. The project team behind the IEO can also increase its influence among the user base of the entire trading platform. Binance Launchpad is a popular product of the IEO platform.

First Decentralized Exchange Offering (IDO)

First Decentralized Exchange Offering (IDO ) is an ICO hosted on a decentralized exchange (DEX). The goal of creating an IDO is to make up for the shortcomings of the ICO and IEO models. For example, project tokens are issued on decentralized exchanges. Project listing costs are usually lower compared to IEOs. IDO also provides instant token liquidity, and tokens can be listed almost immediately upon completion of the IDO.

However, IDO operates on a decentralized trading platform and cannot always undergo strict due diligence. This may increase overall risk, as some IDO projects may be of poor quality or have a bad reputation. You should also be careful of exit scams. Many IDOs themselves are fraudulent projects that defraud investors of their funds.

Warm reminder for participating in IGO

Like all investments, IGO cannot guarantee profitability. You should always do your own research (DYOR) and consider potential risks before investing in an IGO.

For example, you can check the game project's website or social media to see if it provides a clear plan or development roadmap. Also check to see if there are any reputable investors or partners investing in the project.

How to participate in IGO on Binance NFT?

You can participate in IGO on Binance NFT and obtain exclusive in-game assets and NFT collectibles from a series of game projects.

Binance NFT adopts a unique subscription mechanism to ensure that all users can participate in IGO equally. The final distribution of NFTs will be based on a fully public and verifiable selection algorithm.

1. Log in to your personal Binance account and enter [Binance NFT]. Click on the banner of the IGO project you wish to participate in.

2. Immediately go to the subscription page, where you can view project details. You need to meet the BNB holding requirements to be eligible to participate.

3. Binance IGO is divided into four stages: preparation, subscription, calculation and distribution. Please read this FAQ article to learn what to do at each stage.

Summary

IGO develops for games Providers offer an innovative way to fund projects through the use of blockchain technology. Although IGO is a good way for investors to support gaming projects in the early stages, it also carries significant financial risks. You should always do your due diligence before taking the plunge.