What is Pre-sale in Crypto Investment?
Pre-sale is the private crowdfunding of a crypto asset before it is made available to the general public. The term pre-sale is also used interchangeably with the term pre-ICO/IEO/IDO.
In most cases, the tokens of a new project are sold privately to a selected few. This way, the company tries to raise funds that are not as much as during the crowdfunding stage.
Funds raised during public crowdfunding are more than that of the pre-sale. One notable advantage of participating in a pre-sale is that the tokens are available at lower prices. Let’s highlight some of these benefits below.
Benefits of Investing in a Pre-sale
The pre-sale stage of a cryptocurrency comes with significant benefits. One is the opportunity to join a project before its token valuation balloons. There are obvious benefits to joining a crypto project early in the day.
The next advantage is the access to exclusive rewards made available at the pre-sale stage. Such rewards include the possibility of exchanging such tokens on a crypto exchange before it goes mainstream where they tend to rapidly expand in valuation, especially during a bull market. This way, profits are guaranteed without fear of volatility. Additionally, there is the possibility of joining like-minded individuals in projects that you love.
It’s a fantastic idea to get involved in the first sale of a new project to take advantage of the immense benefit, such as the huge profits those engaged stands to gain. But in reality, it is difficult to join a pre-sale because certain new projects are in high demand. But if you ever see the opportunity to join a pre-sale, we advise that you first do your research about the project.
Altcoins, tokens, and cryptocurrencies at the embryo stage can be put up for a pre-sale. The effort may either involve directly contacting investors or using certain third parties as intermediaries, such as exchanges for promotion.
The Downsides of a Pre-sale
As there are immense benefits to joining or investing in a pre-sale, there are also downsides to a pre-sale. The downsides don’t always affect those who partake in it. It is most detrimental to those who invest in the project later on.
One major downside of a pre-sale is that early partakers or investors can dump such tokens as soon as they are listed on an exchange making sweet gains. Most early investors often sell-off once they are listed on an exchange for a decent profit since they bought they at a cheaper rate during the pre-sale.
Upcoming Pre-sale Cryptocurrency List
Websites committed to promoting pre-sales, such as CryptoTotem, CoinMarketcap, ICOdrops, or ICOmarks, allow the public to be aware of such opportunities. On such platforms, you can learn about upcoming crypto pre-sales. Additionally, future plans for specific new crypto projects are made available for the benefit of those interested.
Nowadays, websites allow project developers and founders to promote and provide vital information about their projects. This way, intending investors can tell if the pre-sales are still opened or closed. Such platforms also make it possible for investors to choose from the list they provide.