What Everyone Should Know About Initial Game Offering in Web3 World
The Web3 industry is seeing more adoption, as players in the arena continue to experiment with different use cases. It is not unusual for crypto investors, both seasoned and industry new comers, to invest in presently cheap virtual assets hoping to get their hands on the next ‘to the moon' asset. Game makers who are actively working in the metaverse, NFTs and Web3 sectors use this investor tendency to rope-in fundings for these projects. Basically, these game firms announce Initial Game Offerings (IGOs) to rope-in investors and at the same time, stir some buzz around their projects before their releases.
IGOs provide individuals with an opportunity to invest in Web3 gaming projects at an early stage that have the potential to offer huge returns after their launch.
Game developers often put out game related crypto tokens and digital collectibles as IGOs, aiming to raise funds to support their projects.
In return, the buyers get early access to in-game accessories like mystery boxes, skins, and weapons.
Game enthusiasts who wish to purchase IGO offerings may be required to purchase launchpad tokens in order to have a guaranteed allocation in an IGO.
Seedify, Gamestarter, and EnjinStarter are some popular launchpads for IGOs.
In recent times, Evermore Knights as well as STEPN, a Web3 lifestyle app with social and game elements are known to have released IGOs.
A DappRadar report had recently said that a whopping 804,000 unique active players connected to blockchain-based games as of July 2021.
Play-to-earn games, like Axie Infinity, Sorare, Evolution Land, and Zed Run among others, come under the category of GameFi – Game and Finance.
With the rise of the GameFi category, people are flocking to buy game-centric NFTs or tokens while the game is still in its early development age.
While IGO buyers do have a chance of reeling in unexpected profits and gaming advantages beforehand, it is advisable that people do a thorough research before purchasing an IGO.
Chances of buyers getting scammed in incidents of rug pulls, where developers gather funds with initial offerings, and then abandon the projects leaving investors high and dry.