CSC | Initial Game Offerings (IGOs); A comprehensive overview

The blockchain industry has continuously evolved with many exciting NFTs, DeFi, MetaFi, GameFi etc, projects fast on the rise. The gaming industry has particularly begun to harness blockchain benefits with the ongoing Metaverse, NFTs, and GameFi revolution. Blockchain projects, as with any start up, require immense funding and projects emerging in the gaming world are no different. While there a number of ways to raise funds for these projects, Initial Game Offerings (IGO) are increasingly becoming popular as investors apeing into the rising growth of GameFi in the past year.

During the beginning phase of development, IGOs can be used to purchase NFTs or tokens for a blockchain game before it is released through launchpads . Here, depending on the project, participants who are involved in the launchpads have to lock the platform’s native token for a specific period of time in return for early access to the game’s tokens or NFTs when it is launched. Sometimes, tokens and NFTs earned during IGOs can be traded on decentralized exchanges and NFT markets outside of the game and this also depends solely on the project.

The idea behind IGOs was first introduced on the GameFi.org platform before other launchpads such as Enjinstarter, Gamestarter (GAME), Seedify.fund (SEED), and followed suit, allowing usersthe chance to partake in gaming projects at an early stage and earn enormous rewards when released. In this piece, we’ll dive into everything you need to know about IGOs

What is Initial Game Offering (IGO)?

An Initial Game Offering (IGO) is a fundraising event which allows participants to invest in startup blockchain-based games NFT assets during a crowd sale especially in their developmental phase. IGO gives participants early access to games NFTs as they help developers raise funds for the gaming project. Also, they are granted access to special in-game items such as free passes, and receive discounts on game releases and access to project tokens.

The reason for carrying out an IGO is to help start-up blockchain-based gaming projects raise the required capital to develop their products, which is why being an early adopter comes with several benefits once the project goes live.

How does an Initial Game Offering work?

In an IGO, interested participants are allowed to invest in an upcoming gaming project during its development phase early. The main aim is to get enough funds to push the project from its development phase into the stage of completion. For supporting these game projects at their developmental stages, participants get early access to various in-game assets such as mystery boxes, weapons, characters, etc which are usually Non-fungible tokens used in accessing the game when it’s launched. Note that IGO is different from ICO. ICO deals mainly with cryptocurrencies while IGO focuses on gaming assets like NFTs.

However, if the project does well in the long-run, the NFT tokens received by early participants in the IGO will leave early investors with substantial gains. It is also important to note that investing at an early stage also comes with some level of risks as there is nodoesn’t guarantee that the project will do well or become functional.Just as there are real projects, there are also those built to defraud unsuspecting investors.

Here are a few tips to consider before investing in any IGO platform:

• Do a research on who the project holders are and what are the benefits of being a token holder
• Check if the IGO launchpad can be able to guarantee a certain level of slots in the event
• Evaluate the ROI (return on investment) and determine if it’s worth your time, money and effort.
• Check for the number of IGO launchpad token creation events on the platform

It is also important to take note of the following before investing in an IGO:

• Investing in IGOs does not guarantee that you will receive a beneficial return, like any other investment.
• Always ensure to do your own research and put into consideration the risks of investing in any prospective IGOs before committing to one.
• Review the website or social media platforms of the game project to see if it is presenting a clear goal or expansion strategy.
• Finally, check if the game project has any respectable investors or partners behind it.

About Coinex Smart Chain

CoinEx Smart Chain (CSC) is a decentralized and efficient public chain created by the CoinEx team for decentralized finance. The public chain, perfectly compatible with the Ethereum ecosystem, features high efficiency, low fees, as well as permissionless validators. All developers can easily build their own decentralized applications based on CSC or quickly deploy their EVM applications on CSC.

Simplicity and ease of use lie at the core of CSC’s vision. CSC aims to create a flourishing ecosystem by building a well-performing, secure, stable public chain environment that features the Multi-Million Dollar Supportive Plan and the Special Metaverse Fund, as well as strong support for ecosystem growth and user education.

Concluding Thoughts

With the rate at which the blockchain game industry is developing since its boom, we expect to see more opportunities step in to benefit both game developers and game lovers. The IGO phenomenon is still quite new and can be a great way to get involved in many promising projects as an early adopter. However, ensure to analyze projects not only for their benefits but also their risks. As always advised, DYOR!

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