Presale
Presale is basically the second phase and preliminary sale phase initial coin offering that is held before the main public sale kicks off. The presale phase in cryptocurrency is one of the various fundraising activities that projects hold to raise funds mostly during the latter stages of the project development to complete and finalize the project and get it ready for public use. The main purpose of the presale to allow other group of investors who were not part of the private sale to participate in the presale and invest in the project and acquiring the presale asset at a much cheaper price.
Presales are not made open for the general public to participate, however, the presale isn’t private as the public is aware of the presale since the information is on the different channels of the project like launchpads, social media channels and website. Presales are mostly carried out publicly, however, the number of investors required in the presale phase is limited to a certain number, and also there are specific percentage that is allocated to the presale. Most presale have a minimum amount of investment capital needed to partake in the presale and also a max amount that a single investor can invest with. Aside from fundraising, the presale is also a great way for projects to create the much needed awareness for the main public sale and also to provide the initial liquidity for exchanges.
Benefits
investors in the presale have the opportunity to acquire the presale coins very early in the project’s lifecycle at a much cheaper price.
A great opportunity for the investors to make huge profits from their investment due to acquiring the coins or tokens are a cheaper price in the presale phase.
Investors in presales also stand a chance of other privileges or benefits for becoming early investors.
Risk involved
Investors who invest in presales stand a high risk of losing their investment capital if the project doesn’t fulfil its potential.
The assets acquired in the presale can become worthless quickly when listed on an exchange due to other investors dumping.
There is no guarantee that the presale coins will gain value in the future
There is a possibility that presale investors would purchase at a higher price compared to the price of the coin after getting listed on exchanges
Public Sale
Public sale is basically the last phase sale initial coin offering that is held as the main crowd sale and is much bigger than the private sale and presale. The public sale phase in cryptocurrency is one of the various fundraising activities that projects hold to raise funds mostly after the project development has been completed and finalized and ready for public use.
The main purpose of the public sale is to allow the general public and other investors to participate in the public sale and invest in the project by acquiring the coins at a discounted price that is higher than the private sale and presale price, before the coin get listed on exchanges. Unlike the private sale and presale that has minimum investment amounts, investors in public sale can invest any amount in the project. Aside from fundraising, the public sale creates awareness for project and is very critical when it comes to initial coin offerings because the success of the ICO can greatly push the value of the project up.
Benefits
Investors in the public sale have the opportunity to acquire the coins very early in the project’s lifecycle before the coin gets listed on top exchanges.
The risk level in investing in public sale is lower compared to private sale and presale since the project is already completed and finalized.
A great opportunity for the investors to make huge profits from their investment due to acquiring the coins or tokens are a cheaper price in the public sale phase.
Most public sale does not require the know your customer verification making easier for anyone to become an investor in the public sale.
There is an increased liquidity due to the large number of investors who acquired the coins.
Risk involved
Investors who invest in public sale stand a high risk of losing their investment capital if the project doesn’t fulfil its potential.
The assets acquired in the presale can become worthless quickly when listed on an exchange due to other investors dumping or rugpulls.
Even though the public sale is successful, there is still no guarantee that the coins will gain value in the future due to many negative factors.
Sometimes it is better to invest much later after the ICO and after getting listed on exchanges as many large investors from the private sales, presale and public sale might dump, causing the price to drastically fall below the public sale price.
Most of the time, there is a lot of scams in the presale and it is causing a lot of things
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