With the rise of GameFi, Initial Game Offering (IGO) is gaining popularity among crypto investors. IGO allows you to pre-purchase a blockchain game’s NFTs or tokens at its early development stage.
IGOs are usually organized through launchpad platforms. Typically, investing through launchpads requires participants to lock the platform’s native token for a certain period of time. Depending on the project, participants can gain early access to the game’s tokens or NFTs. In some cases, the tokens and NFTs acquired from IGOs can be traded outside of the gaming ecosystem on decentralized exchanges and NFT marketplaces.
How does an IGO work?
After acquiring the required tokens, participants need to lock them in a pool for a certain period. Depending on the allocation algorithm, they will then receive the project’s token or NFTs based on the amount of tokens locked.
Binance NFT uses a subscription mechanism to select reward winners, so that all participants can get an equal opportunity to get the NFT assets from the IGO. Sometimes, participants are required to hold or stake the purchased gaming token or NFTs for some time before they can trade it on the market.
Differences between IGO, ICO, IEO, and IDO
There are several fundraising methods 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 methods of crowdfunding, but there are certain differences in the way they operate.
Initial Coin Offering (ICO)
Initial Exchange Offering (IEO)
Initial Dex Offering (IDO)
However, as IDOs operate on DEXes, they don’t always go through a rigorous due diligence process. This might increase the overall risks as some IDO projects will potentially have lower quality or a questionable reputation. You should also be careful with rug pulls as many IDOs turned out to be scam projects running away with investors’ funds.
Tips for participating in IGOs
For example, you can check the gaming project’s website or social media to see if it provides a clear plan or development roadmap. You can also see if any reputable investors or partners are backing the project.
How to participate in an IGO on Binance NFT?
You can participate in IGOs on Binance NFT to get exclusive in-game assets and NFT collections from an array of gaming projects.
Binance NFT adopts a unique subscription mechanism to ensure all users get an equal opportunity to participate in IGOs. The final NFT allocation will be based on a fully public and verifiable selection algorithm.
2. You will be redirected to the subscription page, where you can see all the project details. To be qualified for participation, you need to maintain a minimum BNB holding.
IGOs offer an innovative way for game developers to fund their projects through the use of blockchain technology. While IGOs can be a good way for investors to support gaming projects at an early stage, they also carry significant financial risk. You should always perform due diligence before risking your funds.