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ICO Investment Strategy: Online Games Funded Through ICO to Boost Budget | Upsides, and Downsides

ICO Investment Strategy: Online Games Funded Through ICO to Boost Budget | Upsides, and Downsides image

Initial Coin Offering Overview

Initial Coin Offering (ICO) is usually used for the startups and launching companies – a new phenomenon in the cryptocurrency field. It is similar to the Initial Process Offering (IPO) as both of them are used to raise funds and capital.

 

However, ICO is for the early stage as it helps a startup company for their crowdfunding. IPO is for the later stage – when a company is already stable but wanted to add funds for future projects and development.

 

ICO is one of the creative and realistic ways to finance startup outside the traditional way. In ICO, which is related to blockchain, a company creates tokens or coins and sell them to investors.

 

Depending on the company, the tokens or coins can be used in different ways. They have an equivalent value. It’s basically a crypto coin that can be traded to other coins and use in decentralized apps.

 

Boosting Game Funds through ICO

ICO is now even used to secure funds for online games. Often, what startup gaming companies do is to create their own coin that can be exchanged or traded for another coin.

 

They are selling it for a very low price with other benefits such as exclusive weapons, and a limited time sale that is not available when the game goes live -  a big steal for the investors as well, a win-win situation!

 

However, boosting your game fund through ICO can be difficult. Here are some tips on how you’ll be able to boost the fund. Let’s get started.

 

Make a Future Coin

Make sure that your ICO coin has the potential to increase in the future. If not, investors might not see it as a good investment. It may not have a high value now, but it should have in the future. It will happen if you keep the coin value up. So, the community will continue to buy them. 

 

Increasing the coin value means increasing the value of your company, as well.

 

The investors are not the only gamers. The cryptocurrency community is very huge and as long as they see the future value of your coin, they are more likely to invest. Especially if they see potential to your coins and the game, too.

 

Have a Detailed Presentation

If you wish to gather lots of funds through ICO, your company's presentation is very crucial. This is where investor sees an overview or in-depth explanation of what the game is all about and the steps you’ll do to have a successful launch.

 

The most important part that you have to highlight in your presentation is how investors can benefit through your ICO and the game project. Have a brief explanation on how they can trade or make money through your coins and other offers. Usually, what the gaming company does is they sell exclusive weapons that are not available when the game is live. Some of these weapons can be traded to digital cash, too.

 

This must be presented to your website and available to download. If possible, you can show a whole presentation of your upcoming game and some functions that can attract investors. However, you should ensure that your security is tight as there lots of scammers around.

 

Marketing Strategy

If you want people to discover your coin, you have to make them talk about it. The best way to do it is by being a member of all cryptocurrency community and forums. The competition is tight though, as there are many ICO offers all across the web.

 

Make ICO offer stand out by making it exciting –  both your upcoming game and the ICO offer. If you have an exciting game and ICO to offer, the word is powerful and could quickly spread within the community.

 

Other cryptocurrency investors might recommend you as well. Different strategies can be made and the easiest one is “Influencer Marketing”. Slowly, gamers are starting to discover cryptocurrency and its potential. If you have the budget, then go for it as it can bring a great impact, too.


ICOs Upside and Downsides

ICO might sound easy but it has its Pros and Cons, too. Though it is convenient, it can be risky as well. Here are the ICOs Upside and Downsides that you have to take note.

Upsides

  • Raising funds using a “white paper” is easier than the Venture Capital (VC) requirements.

  • Investors can make profits and you can raise funds for your project. It’s a win-win situation for both.

  • The company shares remain 100% on the founders.

  • You can raise more money as ICO is available to the public and anyone can invest with it.

  • As long as your game is well-developed and the marketing strategy is right, you can have a successful launching and a profitable business.

  • Before starting to offer ICO to investors, make sure that you have a functioning game product. It can be an assurance for the investors that the project has a high potential launching.

  • If you see a problem in anything, resolve it quickly.

Downsides

  • Since ICO is available to the public, you do not know who your investors are and what they aim to do with your coin.

  • There are many greedy scammers that can clone your website and ICO. When people invest in these fake websites, this can damage your company’s reputation causing the project to be destroyed.

  • Investors have doubts to invest because it’s very risky. Therefore, you must give them an assurance that the project will launch and your coin is valuable enough for them to invest.

 

Final Thought

ICO has an upside and downside for the founders and investors. However, with research, proper marketing, security, detailed presentation, and a game with lots of potentials, you can assure everyone that the launching is on its way.

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