Play-to-Earn gaming companies belong to the new genre of blockchain gaming. With the advent of the Play-to-Earn (P2E) concept, players can now navigate through intriguing gameplay while earning in the process. The rewards may come in the form of cryptocurrencies or non-fungible tokens (NFTs).
Undoubtedly, the P2E business model is unique to gaming as it combines two activities humans are fond of—earning money and having fun. The core idea of Play-To-Earn games is to reward players for devoting the time and effort required to play and complete the game. A popular example of a P2E game is SolChicks, where players can earn in-game currency, in-game rewards, breed and sell SolChicks, and much more.
The blockchain gaming ecosystem is highly sought after and goes beyond just Play-to-Earn games to include gaming guilds.
This article analyzes what blockchain gaming companies are, the meaning of an initial game offering, and what to expect from one.
What Are Blockchain Gaming Companies?
Blockchain gaming companies are organizations involved in building games utilizing blockchain technology, as well as promoting these games or engaging in any activity related to blockchain games. It may include development companies, Play-to-Earn games, gaming guilds, and much more.
Some blockchain gaming companies or platforms may come in the form of Play-to-Earn games, such as SolChicks and Axie Infinity, where players are rewarded for carrying out different tasks. It may come as a comprehensive ecosystem encompassing Play-to-Earn games, NFT Marketplaces, and much more. An example is the Vulcan Forged Ecosystem.
The Vulcan Forged Ecosystem is a GameFi ecosystem that includes a Non-Fungible Token gaming studio, an NFT Marketplace, a decentralized exchange, Play-to-Earn games, Agora, and an incubator for decentralized apps.
A blockchain gaming company may also come in the form of a blockchain gaming guild. Blockchain gaming guilds are platforms that allow both new and experienced gamers to interact with one another. Usually, this type of gaming guild supports new gamers with scholarships, tutorials, and much more for multiple play-to-earn games. An example is Yield Guild Games (YGG).
Not all blockchain games adopt the Play-to-Earn gaming mechanism. Some take the mechanics of traditional gaming of only playing and having fun while removing the earning aspect.
What is an Initial Game Offering?
An Initial Game Offering (IGO) is a fundraising method used by blockchain gaming companies to raise funds, gain a community, and access other associated benefits. Typically, a blockchain gaming startup offers the native tokens of their platforms as a reward to those who provide funds to develop the gaming platform.
Depending on the issuing gaming startup, these tokens often possess specific utility. For instance, if a Play-to-Earn gaming startup holds an IGO, it may offer its native tokens to investors in exchange for funds. The primary difference between an Initial Coin Offering (ICO) and an Initial Game Offering (IGO) is that the latter is meant only for blockchain gaming platforms.
Whatever services a blockchain gaming company offers, it may opt for an Initial Game Offering to raise funds.
What are the Benefits of Initial Game Offerings?
The benefits of IGOs are numerous to the blockchain gaming ecosystem, and some will be discussed below.
Fundraising Method
An Initial Game Offering is one of the different means of raising funds on a blockchain platform. This method is meant for only those platforms in the blockchain gaming niche. Organizing an IGO allows the development team to access the funds needed to build the platform and its infrastructure.
Low barrier to entry
Blockchain gaming startups often benefit tremendously from an initial game offering because it allows entry into the market without the significant barriers that other startups face. When startups use IGO platforms, they usually receive certain kinds of assistance.
They can access marketing services, particularly when the IGO launchpad advertises its gaming services to blockchain gaming enthusiasts and investors via various channels. Gaming startups can also benefit from advisory services and much more.
Community
Multiple investors and enthusiasts usually utilize initial game offering launchpads in the blockchain gaming industry. Investors and enthusiasts are always interested in the latest developments in the space and use fundraising platforms to stay updated on relevant information and events.
Innovative gaming companies can grow their community by utilizing the services of a well-known launchpad.
This means that they receive not only funding but also the support of a vibrant community.
Innovative projects
Fundraising launchpads serve as a bridge between investors and gaming startups in need of capital, some conduct due diligence on the projects they list on their platform.
Investors with unused funds may choose to participate in the fundraising event in the hopes of receiving valuable assets in exchange. Launchpads help investors become involved in innovative projects before they become mainstream.
Open to everyone
Typically, the traditional investment system is designed to be difficult for the average individual to invest in projects. Some restrictions are put in place only to allow venture capitalists to invest in projects, and this affects several projects, including blockchain gaming platforms.
An IGO removes or reduces the barriers investors have to deal with while investing. Anyone can participate in an IGO, as long as they satisfy minor requirements which may be altered based on the event’s launchpad or platform. The Know Your Customer (KYC) process and a minimum amount of tokens are general requirements.
Value for early investors
Some IGOs benefit investors significantly, especially if the gaming startup grows to become a highly successful platform. Those who invest early in such gaming companies end up with valuable in-game assets, tokens, and NFTs.
This is not always the case for all investors, as some are dumped or left with worthless assets. It is essential to always conduct due diligence before participating in IGOs.
How does an IGO work?
IGOs are a means of raising funds for new projects. Typically, it involves participants purchasing the assets of a gaming startup and other benefits associated with the game before the blockchain game is developed and released to the market. Usually, investors in an IGO are given the native tokens of the blockchain game before others.
Sometimes, they are given game assets such as collectibles, weapons, avatars, skins, virtual lands, mystery boxes, and so on. These assets have utility in the game and tend to come in the form of NFTs.
Usually, an IGO is done on a launchpad with a large following, and this platform acts as a bridge between projects and investors. Launchpads cater to early-stage gaming platforms and create a haven for them to raise funds and distribute in-game assets and tokens to users.
Sometimes, an IGO launchpad may request that users hold their native tokens and stake them for a while before they are allowed to participate in any Initial Game Offering. In some cases, investors have to undergo a Know Your Customer (KYC) process before they are permitted to use the platform.
Most of the time, IGO launchpads vet the projects that they host. This should not deter astute investors from conducting their due diligence.
What are Other Fundraising Methods?
There are different fundraising methods that are available to users, such as Initial Coin Offering, Initial Exchange Offering, Initial DEX Offering, Security Token Offering, and Initial NFT Offering.
Initial Coin Offering
Blockchain platforms use this fundraising method to raise capital and distribute native tokens to participants in return. Usually, this is hosted by the platform that needs the funds.
Initial DEX Offering
Decentralized exchanges host this crowdfunding method on behalf of crypto startups. Crypto startups can organize their fundraising on decentralized launchpads, allowing their tokens to be listed on the DEX immediately after the event.
Initial Exchange Offering
This fundraising method involves a crypto startup raising funds on a centralized exchange. Typically, after the crowdfunding event, the native token of the blockchain platform is listed on the centralized exchange.
Security Token Offering
This takes the form of an Initial Public Offering done by traditional companies. Here, the blockchain startup offers security tokens to investors that participate in fundraising events.
In Conclusion,
- An Initial Game Offering (IGO) is a fundraising method used by blockchain gaming companies to raise funds, build a community, and access other associated benefits.
- IGOs are usually conducted on a launchpad that acts as a bridge between innovative startups and investors.
- IGOs are open to everyone.
- IGOs have low barriers of entry for both investors and startups.
- Other fundraising methods blockchain projects can employ to raise capital include Initial Coin Offering, Initial Exchange Offering, Initial DEX Offering, Security Token Offering, and Initial NFT Offering.
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