Brief content

With the advent of GameFi, the initial gaming offering (IGO) is gaining popularity among crypto investors. IGO allows you to pre-purchase blockchain gaming NFTs or early development tokens.


Introduction

IGOs are usually organized through the Launchpad platform. Generally, when investing through these platforms, participants must lock the platform's native token for a certain period. Depending on the project, participants may get early access to game tokens or NFTs. In some cases, tokens and NFTs received from IGOs ​​may be sold outside the gaming ecosystem on decentralized exchanges and NFT marketplaces.


How does IGO work?

An initial gaming offering (IGO) is a method of raising capital for gaming blockchain projects. It is similar to an Initial Coin Offering (ICO), but in addition to cryptocurrency tokens, IGO members can gain early access to in-game assets, supporting early game development. Featured IGO assets often include mystery boxes, characters, skins, accessories, weapons, and other items. Most often these are NFTs needed to access or play.

There are several IGO platform Launchpads currently on the market, including Binance NFT, BSCPad, TrustSwap and EnjinStarter. Different launchpad platforms have different setups for IGOs, but usually investors need to purchase the platform's native launchpad token to participate. Take the Binance NFT IGO for example: investors must have a certain amount of BNB in ​​their Binance wallet to be eligible to participate.

After purchasing the required tokens, participants must lock them in the pool for a certain period. Depending on the distribution algorithm, they will then receive project tokens or NFTs based on the number of tokens locked.

Binance NFT uses a subscription mechanism to select winners so that all participants can have an equal opportunity to receive NFT assets from IGO. Sometimes, participants are required to hold or stake purchased game tokens or NFTs for a certain amount of time before they can trade them on the market.


Differences between IGO, ICO, IEO and IDO

There are several ways to raise funds in the crypto world. Some of the more popular ones are Initial Coin Offering (ICO), Initial Exchange Offering (IEO), and Initial DEX Offering (IDO). They are all similar to crowdfunding methods, but there are some differences in how they work.


Initial Coin Offering (ICO)

Initial coin offerings (ICOs) were the first approach to fundraising in cryptocurrency. It allows blockchain-based project teams to raise funds through the use of cryptocurrencies. The ICO method was used by Ethereum back in 2014 and was a very popular means of crowdfunding until early 2018. ICO events can offer projects an efficient way to get financial support in the early stages of development. You can learn more about ICOs in our article What is an ICO (Initial Coin Offering)? .


Initial Exchange Offering (IEO)

The key difference between an initial exchange offering (IEO) and other offerings is that the IEO is not hosted by the project team directly, but by a cryptocurrency exchange. Partnerships with reputable crypto exchanges can benefit both the project and the IEO participants. Most often, projects have to undergo a thorough inspection before being placed on the stock exchange. The project team behind the IEO can expand its reach through users of the exchange. Binance Launchpad is a popular example of an IEO platform.


DEX Initial Offering (IDO)

The Initial DEX Offering (IDO) is an ICO held on a decentralized exchange (DEX). IDO was created to eliminate the shortcomings of the ICO and IEO models. Since the project token is launched on the DEX, the project listing is usually cheaper compared to the IEO. IDOs also provide immediate token liquidity, which means that tokens can be placed almost immediately after the IDO is completed.

However, since IDOs operate on DEX, they do not always go through a rigorous due diligence process. This may increase overall risks, as some IDO projects may be of lower quality or questionable reputation. You should also be careful with scams, as many IDOs have turned out to be fraudulent projects that run off with investors' money.


Tips for participating in IGOs

As with any investment, there is no guarantee that IGOs ​​will produce a return. Before committing funds to any IGO, you should always do your own research on DYOR and consider the potential risks.

For example, you can check the game project's website or social media to see if there is a clear development plan. You can also find out whether the project is supported by reputable investors or partners.


How to participate in IGO on Binance NFT?

You can participate in IGOs ​​on Binance NFT to receive exclusive in-game assets and collectibles from many game projects.

Binance NFT uses a unique subscription mechanism to guarantee all users an equal opportunity to participate in IGOs. The final allocation of NFTs will be based on a public, verifiable selection algorithm.

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

2. You will be redirected to the subscription page, where you can see all the details of the project. A minimum amount of BNB must be held to be eligible.


3. Binance IGO consists of four stages: preparation, subscription, calculation and distribution. Check out the FAQ articles for more detailed information on what you need to do at each step.



Final thoughts

IGOs offer game developers an innovative way of financing their projects through the use of blockchain technology. While IGOs ​​can be a good way for early-stage investors to support gaming projects, they also carry significant financial risk. You should exercise due diligence before risking your funds.