In the cryptocurrency world, crypto presale happens before a token is released to the public. Developers sell tokens to a specific group of investors at a lower price than the public sale. The money raised goes towards development and other costs. There are two types of cryptocurrency presales. The first targets big investors interested in supporting a project early on. Despite higher costs, these investors get perks like discounts and bonuses. The second type of presale is open to everyone, letting retail buyers get tokens before they are available to the public. Most tokens are usually sold during the public sale phase.
Story Highlights:
- Crypto presales occur before tokens are released to the public, enabling developers to sell tokens to specific investors at lower prices.
- Participating in crypto presales offers benefits such as early access, discounted rates, and additional perks while also supporting project development and building community.
- Investing in presales carries risks due to the volatile nature of cryptocurrencies and the lack of regulation in the crypto space.
In the world of cryptocurrency, presale events are becoming more common. These events let investors buy tokens early, usually at lower prices. When a new crypto project starts, developers hold a presale to sell tokens to interested investors. This helps the project gather funds before it officially launches. During a presale, investors can buy tokens at a discounted price before they are available on exchanges. Luckily, as the bull market gains momentum, it is assumed that many projects will announce presales.
What makes a perfect presale?
There are many presales that are currently running on the internet on various platforms. However, not all of these can be considered the best. The typical steps and timeline for the best crypto presales are as follows:
Project Announcement
New cryptocurrency projects announce their plans, teams, and technology, often with a white paper outlining their goals and roadmap.
Presale Announcement
The project declares a presale phase, offering early investors a chance to buy tokens at a lower price than expected post-launch.
Presale Event
Investors can buy tokens, usually with cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), at a discount. Extra perks like early access or voting rights may be included.
Token Distribution
After the presale, tokens are given to early investors. Sometimes, there’s a vesting period where tokens are gradually released to prevent quick sell-offs.
Token Launch
The token is officially released after the presale and any vesting period. It’s listed on cryptocurrency exchanges for buying, selling, and trading by the public.
Why is a crypto presale beneficial?
Early Access
Investors get the chance to buy tokens before they’re available to the public. This can potentially lead to getting tokens at a lower price.
Discounted Rates
Tokens are usually offered at a discounted price during presales compared to their expected value post-launch. This allows investors to get more tokens for their investment.
Additional Perks
Presales often come with extra benefits such as bonuses, discounts, early access to services, or voting rights within the project. These perks incentivize early investment.
Supporting project Development
Funds raised during presales are typically used for project development, marketing, and operational costs. By participating in a presale, investors directly contribute to the project’s growth and success.
Building Community
Presales help create a community of early adopters and stakeholders who are invested in the project’s success. This community support can be crucial for the project’s long-term viability and adoption.
Discovering Presales Locations
Discovering new crypto presales is easy. These sales are available on various platforms and through various sources:
Cryptomedia Platforms
Platforms like Coingape offer reliable information on upcoming presales through articles highlighting the best ones to invest in.
Social Media
Platforms like X (formerly Twitter) serve as information hubs for the crypto community, providing insights and announcements about presales. Additionally, platforms like Telegram and Discord host discussions and updates on upcoming presales, with Discord offering deeper project interactions.
Telegram
Many projects establish communities on Telegram for real-time communication with users and investors. However, it’s crucial to join verified channels to avoid scams.
Presales Launchpads
Platforms like Binance Launchpad host presales and other events, providing visibility for crypto projects. Signing up for their newsletters ensures you stay updated on new presale announcements.
Risks Associated
Investing in cryptocurrency presales can be risky because many new cryptocurrencies fail to gain widespread adoption, potentially causing their value to drop significantly over time. Unlike well-known options like Bitcoin and Ethereum, some cryptocurrencies aren’t widely accepted for buying goods or services, making their exchangeability uncertain. Cryptocurrencies are highly volatile, meaning their value can change rapidly. Investors may buy crypto in a presale only to see its value skyrocket and then plummet below what they paid.
Cryptocurrencies operate on unregulated platforms, lacking the protections offered by brokers or centralised exchanges. It is important to research projects thoroughly before investing to avoid worthless “dead coins.” Also, ensuring secure internet connections during trading is crucial for safeguarding your investments.
Some of the Top Presales in History
Love Hate Inu
Love Hate Inu stands out among cryptocurrency projects for its practical application – the vote-to-earn system. This rewards-based ecosystem allows users to vote on various topics using blockchain technology, ensuring anonymity and security.
Fight Out
Fight Out, ahead of Love Hate Inu, has raised $5.5 million in its presale. The project focuses on a fitness-rewards app and a metaverse where users earn rewards for staying active. Tokens are used within the ecosystem, with REPS as in-app currency and FGHT granting access to the move-to-earn feature.
C+Charge
C+Charge is hailed as a top ICO crypto, bridging carbon credit ownership with EV charging stations. Drivers earn tokenised carbon credit rewards by charging their EVs at partnered stations and settling transactions in CCHG tokens. These tokens have real-world value as they are needed to earn carbon credits, settled in GNT tokens.
RobotEra
RobotEra aims to become a leading metaverse, offering features like land ownership, real estate development, and socialisation. Users are represented by unique robot avatars in this engaging theme, which can be customized to reflect their individuality during social interactions.
Final Words
Participating in presales can help you get in early on projects you’re interested in, but it is important to research them thoroughly. One must check factors like the team behind the project, its market potential, and its use cases.
Also read: Top Crypto Presales to Consider in 2024
