By Eran Elhanani, co-founder of GamesPad.io
We have all seen how multi-million dollar sales of non-fungible tokens (NFTs) have transformed the creative economy; today NFTs are proliferating in all creative fields: material goods, identity, video games and more. New possible use cases are continually being conceptualized, each exploiting the ability of NFTs to generate scarcity-based economic exchange systems. These systems have already revolutionized the way individuals and companies create value and will certainly continue to evolve its perception.
This is why NFTs are playing an increasing role in fund raising; Initial offerings from NFT (or INO, as we at GamesPad call them) are emerging as a major new fundraising tool. An INO involves offering a series of first generation NFTs (also known as genesis NFTs) for a specific period of time; this method can be especially effective for projects with a presence in the metaverse. That’s how.
Strategy n. 1: Use INOs to complement, not replace, your fundraising strategy
INOs are incredibly accessible, as they are capable of including investors from all geographic areas and economic capabilities; anyone with a cryptocurrency wallet can buy NFTs sold during an INO and then choose to resell them whenever they want; furthermore, INOs are less expensive, more efficient and simpler than many other token-based fund raising models.
However, INOs are not a substitute for other methods: since fewer NFTs are sold during an INO than in a traditional token sale, these initial offers do not necessarily have the ability to scale up to attract the number of investors who instead get involved in. other types of token sales.
Therefore, INOs should be used as a complementary strategy to other types of token-based fundraising; By combining traditional token sales with INOs, you can have the best of both worlds. Traditional sales generate the enthusiasm needed to build strong communities and serve to distribute the…
