What is an Initial Game Offering (IGO)?
An Initial Game Offering (IGO) is a form of crowdfunding for game developers and publishers, similar to an Initial Coin Offering (ICO). An IGO allows investors to purchase digital tokens that represent a stake in the game’s development. These tokens can be used within the game itself and may increase in value over time as more players join the platform or new features are added. The proceeds from the token sale go towards funding development costs such as marketing, server infrastructure, art assets, programming, etc. Additionally, some parts of funds raised are often allocated towards community rewards and bounties.
How does it work?
The process begins when a developer creates their own cryptocurrency token on a blockchain protocol such as Ethereum or EOS. This token will then be sold during an IGO via pre-sale or public offering rounds. Investors who wish to participate in the IGO purchase these tokens with either fiat currency or other cryptocurrencies like Bitcoin or Etherium. Funds generated through this sale then go into developing and launching the project’s platform and its associated games/apps/services – including any further investments needed for sustaining operations afterwards.
Once all necessary funds have been collected from investors during the initial stages of development, developers begin working on building out their product which includes coding necessary components for playing games online with others; creating attractive artwork; designing user interfaces; setting up servers etc., before eventually releasing it publicly once complete.. Depending on how successful they were at raising enough resources during their IGO phase could affect how quickly they’re able to launch their product – if there wasn’t enough money raised initially then additional fundraising efforts might be required down the line before full completion can occurr . Once released publicly users may use their purchased tokens to play games on this new platform – usually providing them access to exclusive content not available elsewhere or even special discounts depending upon what type of structure was set up by developers themselves prior release date of product being released . Additionally , these same users may also benefit financially should demand for usage & services provided around said application ever rise beyond expectations & thus increasing value attached thereto .
What risks should investors know about before investing in an IGO?
Investors should always do careful research when considering participating in any type of investment opportunity – especially those involving digital assets like cryptocurrencies! When looking at potential ICOs one must keep several things mind: Firstly , pay attention to team members behind projects because if there isn’t anyone with experience relevant industry knowledge behind project than chances success rate plummeting drastically ; Secondly , researching track record past successes / failures projects undertaken by same team members involved goes long way helping determine risk factor associated venture ; Thirdly , familiarizing oneself technical aspects underlying asset class being invested helps identify shortcoming opportunities related space so knowledgeable decisions possible based off gathered data ; Lastly but certainly not least doing due diligence concerning legal implications particular jurisdiction which asset being bought into so potential liabilities minimized accordingly .
