Launchpads to crypto gaming platforms are gaining traction. The method they use for funding is called an IGO (Initital Game Offering) that are like the ICOs (Initital Coin Offerings) in crypto and an IPO (Initial Public Offering) in traditional finance. IGOs are based on cryptocurrency like NFTs (Non-Fungible Tokens), which are issued to represent unique digital assets. NFTs can represent content like art and collectibles, which encompasses the gaming industry. NFTs issued in gaming can be in-game rewards, loot boxes, prizes and game characters. These have unique traits that determines their value. NFTs also establish ownership of a digital asset via a blockchain.
IGOs help to fund new gaming projects using launchpads like Enjinstarter. One of the big reasons IGOs are becoming popular is the rise of the metaverse. This is not the same ‘metaverse’ that Big Tech companies like Facebook (i.e. Meta) are building. Though they intersect in some aspects like with shared virtual worlds (e.g. VR, AR), the crypto metaverse is decentralized and open. Big Tech’s metaverse are like silos with their own ecosystems, but they may connect to the crypto metaverse with regards to NFTs. Other than that, there are still differences with respect to their purpose.
The use of NFTs in the metaverse is a big factor in crypto gaming projects. Developers are not just building fancy virtual world games. They are adding value to it using cryptocurrency in the form of NFTs and gaming tokens. The NFTs are the unique items users collect from playing games. Their value is based on their uniqueness, and this adds value. This can be a unique armor or weapon that gives a gamer advantages or they can be special powers. In traditional gaming these objects are also available but not tokenized like NFTs. When it is in the form of an NFT, it can be traded or sold by the gamer.
Tokens are also another feature of crypto games. Using a Play-To-Earn model (e.g. Axie Infinity), players earn the tokens from playing the game. For example, if the player wins a round, they can earn tokens as a reward for their victory. These tokens can then be put to work in DeFi protocols to earn money. This brings another aspect that is not found in traditional games, so these are enticing users to try something new.
IGOs are for investors who want to jump into a project from the start. It is an opportunity to get into what might become the next big thing in gaming. These have the potential for huge ROI (Return On Investments), depending on the amount invested. There are risks involved since the project might fail, so potential investors should do their research before participating in an IGO. A good project is one that has a great idea, but also make sure that it has a credible team and reasonable tokenomics.
It is also important to check if the project follows regulatory compliance, otherwise there could be problems in the future. This is true if the launchpad is not fully decentralized, since regulators can come after the platform’s owners.
IGOs may only be relevant until new techniques for funding replace them. For example, ICOs were eventually replaced by STOs (Security Token Offerings) and IDOs (Initial DEX Offerings) due to regulatory concerns. Those who get in early are usually the ones who benefit the most from these projects. An IGO is a great opportunity worth exploring for investors interested in earning from the next generation of gaming.
Disclaimer: This is not financial advice. The information provided is for reference or educational purposes only. Please do your own research always to verify facts.
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