What is an Initial Game Offering (IGO)?

IGO is an acronym for Initial Game Offering. An IGO is where blockchain-based game projects sell tokens or in-game items prior to the game’s full release. If you’re wondering what an IGO is and how an IGO works then this article will give you some answers.

What is an Initial Game Offering (IGO)?

Blockchain-based game projects launch IGOs to provide users with early access to tokens and in-game items from upcoming titles. With a growing interest in GameFi projects the IGO ecosystem, it’s likely we’ll be hearing the term IGO a lot more. IGOs ensure that the company or project developers collect capital so they can continue their projects. With an IGO, developers also create funds for themselves.

How does an IGO Work?

Project managers who develop blockchain-based games initiate an IGO by publishing a whitepaper to raise funding. Investors who support the company and that are confident in the project participate in an IGO. Those who participate in the IGO get early access to project’s tokens before a public sale. As well as tokens, items such as characters, clothes and accessories, released as NFTs in the game, can also be obtained under an IGO. The investor aims to profit by selling assets they bought during the IGO process at a high price later on.

The differences between IGOs, ICOs, and IDOs

Although IGOs, ICOs, and IDOs serve a similar purpose, they differ in how they are implemented. These three offerings are all fundraising methods where project owners raise capital for their projects. In these offerings project owners aim to ensure their projects’ long-term sustainability and improve the finished product. The most fundamental difference between IGOs and ICO/IDOs, is that investors can gain early access to the items used in the game as well as the project’s crypto money or tokens. IGOs are unique to the gaming industry.

ICOs

An Initial Coin Offering (ICO) refers to the first sale of a newly produced token or crypto asset to users on a cryptocurrency exchange in order to fund projects. Tokens or crypto assets purchased by users could give the purchasers unique advantages. Purchases also create revenue for the project’s creators.

IDOs

An Initial DEX Offering (IDO) refers to decentralised cryptocurrency trading platforms offering assets to fund new cryptocurrency projects. No special permission is required to take part in an IDO. IDOs are created by project managers, and all users of the exchange can join IDOs. The project developers determine the value of a project during an IDO.