Pre-sale is a term used in the cryptocurrency industry to describe an early stage of crowdfunding for a new project. Pre-sales are typically conducted prior to the official launch of an Initial Coin Offering (ICO) or token sale, and offer investors exclusive access to tokens at discounted prices.
The purpose of pre-sales is twofold: firstly, they provide financial backing for projects that may not have sufficient funds yet; secondly, they allow entrepreneurs to generate interest in their venture ahead of its public launch. This can help boost awareness and reputation while creating additional liquidity when the main ICO takes place.
Most pre-sales will require potential investors to pass certain eligibility criteria before being allowed access, such as having experience investing in cryptocurrencies or meeting minimum investment amounts. Investors will usually be required to sign Non Disclosure Agreements (NDA), which protect sensitive information about the project from entering into public circulation too soon.
Once accepted into a pre-sale, investors receive discounts on token purchases relative to those offered during the main ICO period. Pre-sale discounts range anywhere from 10% up to 50%, with higher discounts reserved for larger contributors who invest more capital upfront. Other benefits sometimes available include priority status on waiting lists and bonuses awarded based on performance milestones achieved by the project later down the line.
Investing in pre-sales carries some associated risks due diligence must always be carried out before committing any money – this includes researching team backgrounds/experience, verifying technology feasibility and assessing market competition levels etc.. Furthermore it’s important buyers understand how tokens acquired through pre sales are subject vesting periods – meaning there maybe restrictions placed upon how quickly you can unlock them after purchase has been made
