ICO presale period is the time after the whitepaper is published and before the ICO starts. During this time, tokens are sold to early investors at a lower cost than the ICO stage.
ICO presale is an early stage of ICO. The difference from the crowd sale period is that tokens are sold with discounts during this period. This discount is because the token price usually increases with the duration of ICO, so the presale is the best moment to acquire tokens.
Tokens are sold with discounts of up to 30% in comparison with the crowd sale price. The main question for people who want to participate in the presale is how to get tokens as they are sold out very quickly, as they are usually limited in number.
In the early days of the industry, there were no rules or systems in place for ICOs. Nowadays, more and more ICOs are following a more professional, standardized model of fundraising. This blog will explore what an ICO presale period is and how it can help your project get a head start.
Pros of an ICO presale:
- The sooner you invest, the more reward you will get.
- The earlier you invest, the lower the price is.
- The tokens you get are based on the number of coins you invested.
- You can sell or exchange the coins which you bought during the ICO presale period.
- ICO presale period is a safe period because you can get refunded if the developers don’t release the product within the time they promised.
- Opportunity to benefit from lower token prices before the token is listed on major cryptocurrency exchanges.
- Additional benefits such as discounts, bonuses, and special offers.
- Access to ICO presale tokens or coins before it is available for the general public.
- allowing you to own a token or coin at a much lower price than the public token sale price.
Cons of an ICO presale
- The risk of the project failing before the token sale.
- The limited amount of tokens available during the presale period.
- The price of the tokens may increase in the crowd sale period.
- The bonus you receive in the presale period may differ from that in the crowd sale period.
- The bonus in the presale period is in the form of tokens. The bonus in the crowd sale period is in the form of ETH.
- The presale has a limited period. The crowd sale has no time restrictions.
- The presale tokens are locked in the smart contract for some time. The tokens in the crowd sale period are immediately tradable.
The presale period of an initial coin offering (ICO) is a special time for investors to purchase tokens before the official crowd sale begins. Each ICO is different, but the presale period is often used to test the waters for investor interest. Some ICOs will offer a discount on the tokens that are purchased during the presale period.
This discount is often anywhere from 10% to 50% off of the value of the tokens once they are made available to the general public. There are pros and cons to participating in an ICO presale, and we hope that our blog post has helped you better understand ICO presales!