By Eran Elhanani, Co-Founder of GamesPad.io
We’ve all seen the way that multimillion dollar NFT sales have transformed the creative economy. Today, NFTs are proliferating throughout creative fields, physical assets, identity, gaming, and beyond. New potential use cases for this technology are being conceptualized all the time – each of them capitalizing on NFTs’ ability to generate systems of scarcity-based economic exchange. These systems have already revolutionized the ways that people and businesses create value, and will surely continue to evolve human perceptions of worth.
This is why NFTs are playing a growing role in fundraising. Initial NFT offerings – or INOs,as we at GamesPad call them – are emerging as an important new fundraising tool. An INO involves offering a set of first-generation NFTs (also known as genesis NFTs) for a specific period of time. This fundraising method can be particularly effective for projects with a presence in the metaverse. Here’s how.
Strategy #1: Use INOs as a Complement – Not a Replacement – For Your Fundraising Strategy
INOs are incredibly accessible, as it is inclusive to investors of all sizes and geographical locations – anyone with an appropriate cryptocurrency wallet can purchase NFTs sold during an INO, and can choose to sell them whenever they wish. INOs are also less costly, more efficient, and easier than many other types of token-based fundraising models.
However, INOs are not a replacement for other kinds of token-based fundraising methods. Because fewer NFTs are sold in an INO than fungible tokens in a traditional token sale, they don’t necessarily have the scaling capacity to bring in the number of investors that other kinds of token sales do.
Therefore, INOs should be used as a complementary strategy to other kinds of token-based fundraising. By combining traditional token sales with INOs, you get the best of both worlds. Traditional token sales generate the kind of…
