What is a presale stage?
Before crowdfunding tokens go through the presales stage, the part of ICO. This is a phase when tokens are available at a discount only for trustworthy investors. A lot of launchers hold some tokens for funders and their families, employees, and, as mentioned above, accredited investors with high-level credibility. The main goal of the presale stage is to raise funds for the project because this stage may occur at the very early stages of the project or to fund the operations that will lead to the ICO launch.
Pre-Sale is an early stage of an ICO when a limited number of people are allowed to buy tokens (those who were able to get on the Whitelist, the list of the chosen ones). They get the first right to invest and can reserve certain amounts in tokens in advance at a discounted price. They also might get bonuses or discounts. Not everyone will get into Whitelist: only accredited investors, developers’ inner circle, project partner investment funds, venture capital funds, and angels are allowed into some of them. There’s also a minimum investment limit of $5,000 or even $50,000. As for investors, one of the biggest disadvantages is the fact that there is a risk that lower prices offered during the presale often can affect the value of the tokens at the ICO stage. That’s why there are some conditions for the investors who want to buy a token, usually, they can’t sell their tokens right after when the crowdfunding stage begins and everybody can buy a token at a normal price. This is done to avoid any dumps. Nevertheless, the liquidity of those coins being offered is less in the presale event than during ICO because the actual launch of the tokens on the exchanges is still a long way away. In comparison, the ICO stage offers liquidity soon. Moreover, there are some risks that a project may fail, investors can end up owning worthless tokens, and they won’t be able to make a profit from their investment in the future.
Why is it important to get into Presale?
A token presale occurs before an ICO launch. The main reason is the low price because of special bonuses. You will get more tokens per unit of invested cryptocurrency (usually ETH or BTC). The second reason is that there may not be enough tokens for everyone. Good projects always have a hard cap on fees, which is taken apart by Pre-Sale participants. If the demand for tokens at the Pre-Sale stage is low, then it is doubtful that their price will soar after they are published on the exchange. So, you can get into a really good project at the Pre-Sale stage or in the first 5-10 minutes after the start of the Token Sale. In other ICOs, it is better not to invest money and wait for the tokens to be published on the exchange.
How to perform a presale the most efficient way?
Firstly, when you come up with an idea, think about whether your project needs an ICO.
Then you should study the market and learn about who you are competing against? Both you and your competitors are willing to get the investors’ money.
The next step you should take is to make sure that you have already reached the legal side of things and find out if ICOS is legal in your country.
Fourth, create an ICO token. What you need is a solid distribution plan. You need to make up a white list of investors who are trustworthy enough and to whom you can sell your token.
Finally, don’t forget about the PR of your tokens before it goes on the ICO and even presale stage. If you want to raise funds, you need public attention to your projects and a well-thought-out marketing strategy to make people interested in investing.