The Web3 industry is seeing more adoption, as players in the field continue to experiment with different use cases. It is not uncommon for crypto investors, both seasoned and new to the industry, currently investing in affordable virtual assets hoping to get their hands on the next ‘moon’ asset. Game makers who are actively working in the Metaverse, NFT and Web3 sectors use this investor trend to fund these projects. Basically, these game firms announce Initial Game Offerings (IGOs) to rope in investors and also, have some discussion about their projects before their release.
IGOs provide an opportunity to individuals to invest in web3 gaming projects at an early stage, which have the potential to generate huge returns after their launch.
Game developers often hold game-related crypto tokens and digital collectibles in the form of IGOs, intended to raise funds to support their projects.
In return, buyers get early access to in-game accessories such as mystery boxes, skins, and weapons.
Sports enthusiasts who wish to purchase IGO offerings may need to purchase Launchpad tokens for a guaranteed allocation to the IGO.
Seedify, Gamestarter, and EnjinStarter are some of the popular launchpads for IGO.
In recent times, STEPN, along with Evermore Nights, is known to release IGO, a Web3 lifestyle app with social and sports elements.
A report by DappRadar recently stated that as of July 2021, 804,000 unique active players are connected to the blockchain-based game.
Play-to-earn games like Axie Infinity, Sorare, Evolution Land, and Zed Run fall under the GameFi – Game and Finance category.
With the rise of the GameFi category, people are flocking to buy game-focused NFTs or tokens while the game is still in its early development era.
While IGO buyers have a chance to sink into the windfall and gaming benefits beforehand, it is advised that people do a thorough research before buying an IGO.
Buyers are prone to scam in rag pull incidents, where developers collect money with initial offers, and then abandon projects leaving investors high and dry.
Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.