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What is an IGO and How to Get in on the Action
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The IGO acronym stands for many things, but in the world of crypto, it means Initial Game Offering.
f you’re familiar with ICO - Initial Coin Offering, this is the same idea except only for cryptocurrency games or NFT games.
This fairly new concept is attempting to redefine gaming, and in a lucrative way.
It’s not playing safe, either. This IGO thing - it’s grabbing traditional gaming by the neck and dragging it through cyberspace.
Back in the day you had to spend money on games. When you stopped playing, you didn’t get your money back. With the appearance of NFT games and Play-to-Earn titles, gamers can now get paid for the time they invested.
The way it works is similar to ICO. On an ICO project, users are invited to make early investments on a new token at a low price in hopes of it increasing in value when the project launches.
When a developer wants to make an NFT game, they register it on an IGO launchpad, which is a platform where you can find and play crypto games.
Usually, the listing will provide information about the game and what it offers, including the native token and its price. Interested users will invest in the game by purchasing the IGO tokens, funding the project.
The IGO token price depends on the developers and sometimes, the platform will determine it based on how popular it gets. The more people buying the token, the more valuable it becomes.
Think of it like crowdfunding, but at a much higher pace. This is because IGO projects are blockchain based and built for monetary purposes. Almost 100% of gameplay is oriented towards how much money both the users and developers can generate, so little effort is put towards visuals or storyline.
One of the most anticipated IGO games on GameFi - Drunk Robots
How to Get in on an IGO
As mentioned above, you can find an IGO project on IGO launchpads. Each of these platforms have vastly different reward systems and funding mechanics, but fret not, most of them are pretty easy to get used to, given you have a little bit of gaming experience.
For example, on Seedify, there is a Tier system that rewards you as you climb through the ranks. When you decide to invest in a game, you purchase some native tokens on that game’s blockchain. As you do this, Seedify will also reward you with SFUND, which is a governance coin that lets you buy items and even start your own IGOs.
As you browse through the page, you’ll notice a lot of IGO game titles with the First Phase label on them. This is the preliminary stage of the project and it is awaiting investment. Be sure to check out any and all available information on the game before investing.
IGO game titles with completed Phase 1 will show how much the project has garnered. A large pool usually indicates the game is popular or backed by a reputable company.
You can still purchase tokens during Phase 2, but this is where it gets expensive as everyone is holding on to their coins, making the price go up.Users can expect to find similar settings on most crypto gaming launchpads, though the governance tokens will vary.
IGO - Benefits vs Risks
When life gives you lemons, you can be sure some of them are just plain bitter.
Buying in an IGO project is exciting, but it’s also the equivalent of investing in the unknown. You have no idea if it’s ever going to hit the ground. And even when it does, how long would it last? How many other investors are in the race? A lot of these questions would, unfortunately, remain unanswered for the duration of the IGO.
If you’re a bright sider, here are some of things you can expect:
- Getting in-game tokens at a low price.
- Exclusive game items. These are usually unique items that can only be obtained during the funding period. Most of the time, they are minted NFTs that will increase in value as the game progresses.
- An early head start in progress. If the game you’re investing is competition based, you can often expect to gain quite an advantage over the late comers.
In a worst case scenario, things that might happen are:
- The IGO game never takes off and everyone loses time and money.
- It takes off but flops almost immediately and everyone sells out quickly.
- The whole thing was a scam and the developers pulled the rug as soon as prices started to bubble.
Make Sure to Weigh Your Options
NFT games make money from high value in-game items and the crypto on their blockchain. The prices of those tokens determine the future of the game.
During an IGO, the developers need to increase the value of their tokens as much as possible before launch. This is done purely through hype and promises, though time and again we’ll see a demo or two with extremely limited gameplay.
Make sure you know what you’re getting into before purchasing an IGO coin. It might help to do some research on the developers and if the project has any reputable backers.
Games like Axie Infinity had a heavyweight roster of investors, including the likes of Mark Cuban. Info like that would make a huge difference in your decision of getting into an IGO.
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