Summary

With the rise of GameFi, Initial Game Offerings (IGOs) are becoming more and more popular among cryptocurrency investors. IGOs ​​allow you to pre-purchase NFTs or tokens in the early development stages of blockchain games.

Introduction

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

How do IGOs ​​work?

An Initial Game Offering (IGO) is a fundraising method for blockchain gaming projects. IGOs ​​are similar to Initial Coin Offerings (ICOs), but in addition to cryptocurrency tokens, IGO participants can also get early access to in-game assets and support early game development. Assets offered by IGOs ​​typically include blind boxes, characters, skins, accessories, weapons, and other items. In most cases, these NFTs are required to enter or play the game.

Currently, there are many IGO Launchpads on the market, including Binance NFT, BSCPad, TrustSwap and EnjinStarter. The IGO settings of different Launchpads are different, 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 deposit a certain amount of Binance Coin (BNB) in their Binance wallet to be eligible to participate in the investment.

After obtaining the required tokens, participants need to lock them in the fund pool for a certain period of time. Based on the allocation algorithm, investors will then obtain project tokens or NFTs according to the number of locked tokens.

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

The difference between an initial game offering (IGO), an initial coin offering (ICO), an initial exchange offering (IEO), and an initial decentralized exchange offering (IDO)

There are several methods of fundraising in the cryptocurrency space. The more popular methods include Initial Coin Offering (ICO), Initial Exchange Offering (IEO), and Initial Decentralized Exchange Offering (IDO). They are similar crowdfunding methods, but they work differently.

Initial Coin Offering (ICO)

Initial Coin Offering (ICO) is the first cryptocurrency fundraising method. In this method, blockchain-based project teams raise funds by using cryptocurrency. As early as 2014, Ethereum adopted the ICO method, and 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. For more information about ICO, please read our popular science article "What is an Initial Coin Offering (ICO)?"

Initial Exchange Offering (IEO)

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

First decentralized exchange offering (IDO)

An Initial 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 a decentralized exchange. The cost of listing a project is usually lower compared to an IEO. IDO also provides instant token liquidity, and tokens can be listed almost immediately after the IDO is completed.

However, IDOs operate on decentralized exchanges and are not always subject to rigorous due diligence. This can increase overall risk, as some IDO projects may be of low quality or have a poor reputation. You should also be careful of scams, as many IDOs are scams that defraud investors of their funds.

Tips for Participating in IGO

As with all investments, there is no guarantee of profit with IGOs. You should always do your own research (DYOR) and consider the potential risks before investing in an IGO.

For example, you can check the website or social media of the game project to see if there is a clear plan or development roadmap. You can also check if there are any well-known investors or partners investing in the project.

How to participate in IGO on Binance NFT?

You can participate in IGOs ​​on Binance NFT to get exclusive in-game assets and NFT collectibles from a series of game projects.

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

1. Log in to your Binance account and go to [Binance NFT]. Click the banner of the IGO project you want to participate in.

2. You will be redirected to the purchase page where you can view the project details. You must meet the BNB holding requirement to be eligible.

3. Binance IGO is divided into four stages: preparation, subscription, calculation and distribution. Please read this FAQ article to understand the to-do list for each stage.

Summarize

IGOs offer game developers an innovative way to fund their projects using blockchain technology. While IGOs ​​are a great way for investors to support gaming projects at an early stage, they also carry significant financial risks. You should always do your due diligence before taking the plunge.