Every blockchain game has underlying utility and governance of cryptocurrency. Some may even incorporate additional ones for the reward purpose to alleviate the pressure on the leading coin. To enable players to purchase NFT and in-game items, GameFi firms offer their tokens for sale via different processes.
Understanding how these methods work is essential to participating successfully in them. If you are active within the web3 gaming space, there are many ways to earn from blockchain, even without playing them. As we outlined in an earlier article, this niche offers multiple wealth opportunities. One of those is cryptocurrency trading. But you can only exploit the possibilities when you understand how they work.
Different Types of GameFi Tokens Sale
Despite having multiple cryptocurrencies, GameFi projects offer their token for sale through the same methods. Some of these are stated below:
Presale or Initial Coin Offerings
Although they share similarities, these may not always be the same. Presales are often token merchandising rounds that are done before the start of a project. The essence of these forms of sales is usually to raise funds and build a community around the project. They often occur via the blockchain game’s website at a fixed price. More importantly, these are the cheapest price you can ever get to purchase these coins.
In some cases, presales may be separated from an initial coin offering. This is often the case when the team wants to raise extra money or give the community another opportunity to key into the programme. ICOs may occur on the project website or a third-party platform. Whichever the case, the price will be slightly higher than the presale. But it will remain fixed.
Initial Exchange Offerings
This is the point where things start to get a bit tricky for investors. Before we get into the intricacies, IEOs can take place on either centralized or decentralized exchanges. Whichever the case, they both have the same outcome. While the project may set fixed values for the coin, it will not remain the same as with ICOs or presales.
Depending on the mechanisms used, buyer action will change the direction of prices. More purchase means a higher value, while sell-offs will crash the token’s value. Although some teams still employ different approaches to manage volatility.
If the IEO occurs on a centralized exchange, you will need the following:
- An account on that said exchange.
- Sufficient tokens of the available trading pairs.
Should the offering occur on a DEX, these are the requirements:
- A non-custodial wallet like Metamask or similar.
- Appropriate network of the token you want to purchase.
- Enough tokens of the trading pairs in the liquidity pool.
- Tokens for gas fees (if different from the trading pair).
Listings, Regular Trading and Other Types of GameFi Tokens Sale
At this point, the blockchain game is already in existence and is looking to increase the number of exchanges where users can get its token. This is where listings come to play. The process is quite similar to initial exchange offerings, as there is a fixed price and time for the coin to be made available on the said exchange. As traders start buying and selling, the prices continue to fluctuate.
After an IEO, the next step is regular trading. The token or coin is already on the exchange; Anyone interested in getting some for themselves can simply swap their cryptocurrencies. It is also affected by price action.
One prime advantage of regular trading is that buyers can set the price at which they want to purchase. In addition, a bear market or adverse activity may see the value drop even below the ICO cost. This is what traders call – buying the dip.
None of these sales is superior to the other. They all have their benefits and downsides. There is no guarantee that you will profit significantly after buying a blockchain game’s utility or reward. Some teams prevent initial investors from simply selling off their holdings at the beginning stage to prevent a price crash.
The most crucial factor is understanding how these GameFi tokens sale work. This will help you make informed choices. Nonetheless, it is best to see coin offerings as a means of getting your favourite in-game assets than a profit-making venture. Similar to how you pay for additional accessories in regular video games.