By CNBCTV18.com IST (Published)
Mini
With the rise of the GameFi ecosystem, Web3 gaming platforms have created their own fundraising event, known as an Initial Game Offering (IGO).
Every new project needs funding to get off the ground. More often than not, these monies are arranged through some sort of fundraising event. For instance, when a private company goes public, it will host an Initial Public Offering (IPO), wherein it sells its shares to the public to raise money.
Similarly, a new cryptocurrency will depend on an Initial Coin Offering (ICO), wherein a limited amount of its native cryptocurrency is sold to the public to raise the funds needed for development. And now, with the rise of the GameFi ecosystem, Web3 gaming platforms have created their own fundraising event, known as an Initial Game Offering (IGO). Tag along as we unpack all the important need-to-know information about IGOs and how they function.
How does an IGO work?
An IGO allows interested audiences to invest in an upcoming gaming project during its early days. It aims to push a project from its initial stages into the developmental phase and all the way to completion.
The advantage of funding gaming projects through an IGO is that the stakeholders need not convince venture capitalists to fund the project. Instead, they can source the money straight from the interested stratum of the general public.
The main difference between an ICO and IGO is that in the case of the latter, investors gain access to in-game assets over and above the native token. Buyers are incentivised to pump money into IGOs through lucrative offerings like mystery boxes, rare in-game collectables, limited edition skins and accessories, special weapons, etc.
These items are invariably NFTs that can be used to access the game early on; a reward for being one of the first supporters of the new project. Moreover, the tokens earned in the process are cryptocurrencies that can be sold or traded over an…
