Initial Game Offering: Definition and How It Works

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Bittime - Initial game offering (IGO) is a fundraising method used by projects and startups in the gaming industry. IGO allows participants to earn project tokens and other benefits such as getting discounts at the time of game release or having access to special features from those who register in advance before the game launches.

What is GameFi?

GameFi is a term that combines gaming with elements of decentralized finance (DeFi). GameFi includes play-to-earn projects and games that make up the crypto gaming ecosystem. In GameFi, players can generate crypto tokens by completing certain tasks in blockchain-based games. These crypto tokens have real value in the market and can be traded on crypto exchanges.

The Game Early Offering Initiative (IGO) is one way for blockchain game developers to raise funds in the early stages of gaming. IGO offers retail investors the opportunity to earn in-game assets and tokens before they are available to the public. IGO also provides incentives to players to participate and support the development of the game.

How Does IGO Work?

To launch an IGO, blockchain game developers usually work with a special launch platform called a launchpad. Launchpad is a platform that provides infrastructure, support, and networking to facilitate IGOs. Launchpad also acts as a filter to select quality game projects that deserve funding.

To participate in the IGO, investors must meet several requirements set by the launchpad. These requirements can be in the form of holding launchpad tokens, staking, or whitelisting. After meeting the requirements, investors can purchase in-game assets and tokens at discounted prices. These assets and tokens are usually delivered to the investor's wallet after the IGO is completed.

The assets offered in IGO vary from characters, skins, weapons, accessories, to mystery boxes. These assets are usually in the form of non-fungible tokens (NFTs) that exist on the blockchain. NFTs are unique, non-fungible blockchain-based digital artworks. NFTs give ownership and authenticity to their owners. Some of the assets offered in IGO are required to access or play the game.

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IGO in NFT

NFTs are one of the factors that make GameFi attractive and profitable. NFTs provide financial and aesthetic value to in-game assets. NFTs also allow players to own assets in the game in full and can sell them at any time on the secondary market. NFTs can also enhance the gaming experience by assigning special attributes and functions to in-game assets.

One example of a game that uses NFTs is Axie Infinity. Axie Infinity is a blockchain-based strategy game that requires players to collect, raise, and battle cute creatures called Axies. Axies are NFTs that can be traded on the marketplace. Axies also generate in-game tokens called Smooth Love Potions (SLPs) that can be used to breed new Axies or exchanged for other tokens.

IDO vs IGO: What's the Difference?

Decentralized exchange initial offerings (IDOs) are a fundraising method often used in the crypto ecosystem. IDO is used to launch new blockchain projects, including GameFi projects. IDO allows developers to sell their tokens on decentralized exchanges (DEXs) with low fees and high liquidity.

IDO dan IGO memiliki beberapa kesamaan, seperti keduanya membutuhkan launchpad, memerlukan persyaratan partisipasi, dan menawarkan token dengan harga diskon. Namun, IDO dan IGO juga memiliki beberapa perbedaan, seperti:

• IDO lebih fokus pada penjualan token, sedangkan IGO lebih fokus pada penjualan aset dalam permainan.
• IDO usually offers fungible tokens that are interchangeable with other tokens, whereas IGO typically offers unique, non-fungible tokens.
• IDO usually targets investors who are looking for short-term or long-term gains, whereas IGO usually targets players who are interested in the game and want to gain benefits in the game.

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What are the Advantages and Risks of IGO?

IGO has several advantages, both for developers and players, such as:

• IGO provides seed funding for developers to develop and improve their games.
• IGO provides an opportunity for players to earn in-game assets and tokens at low prices before the public sale.
• IGO provides incentives for players to participate and support the development of the game.
• IGO provides potential profits for players if the assets and tokens in the game increase in value in the market.

However, IGO also has some risks, such as:

• IGOs can create legal and regulatory issues regarding the sale of tokens and in-game assets.
• IGO can pose technical and security issues related to smart contracts, wallets, and blockchain.
• IGO can create quality and credibility issues regarding untested and non-transparent game projects.
• IGOs can create liquidity and volatility issues regarding assets and tokens in a game that is difficult to trade and fluctuates in value.

Conclusion

IGO is one way for blockchain game developers to raise funds in the early stages of the game. IGO offers the opportunity for players to earn in-game assets and tokens before they are available to the public.

IGO also provides incentives for players to participate and support the development of the game. IGO has several advantages and risks that developers and players must consider. IGO is one of the exciting phenomena in the ever-growing GameFi industry.

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How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.

Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

What is an Initial Game Offering (IGO)?

GameFi: Between Gaming and Decentralized Finance (DeFi)

Get to know Play-to-Earn (Play2Earn) Games and their Concepts related to Blockchain

DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.