Discover the best Pre-ICOs
What is a pre ICO?
Pre ICO (also called ICO presale) is a phase which is run before the main token sale or crowdsale campaign. Pre-ICOs usually have lower fund-raising goals and have bigger minimum investment compared to the main sale. It is very common that tokens in the presale phase are sold with hefty (even 50%) discounts.
If a project runs pre-ICO it's very common that they run two different smart contracts for the presale and mainsale. Using this approach it is easier to track and avoid funds being mixed.
Pre-ICOs are being held for many reasons like to getting traction from big investors (tokens sold at discount) or for the expenses/marketing on launching the mainsale. These could be promotion/press releases or hiring strategic partners etcetera.
What is the advantage to participate ICO presale?
The main advantage in presale ICO is that ordinarily, you can participate even 40-50% cheaper compared to the official sale. Some projects might run couple different ICO presales and discount at each sale get's lower as we go more near the official mainsale.
Are there any disadvantages in pre-ICOs?
Probably the worst disadvantage of ICO presales is that investors that participated the pre-ICO phase can dump the tokens as soon as the project is listed on exchanges. In other words, they sell or at least have an option to sell as they have bought tokens much cheaper than investors that got in the mainsale. This means that they make solid profits while the project value starts dipping and hurting the investors which didn't get tokens with the discounted price.
- *Please note that all information is provided only for informational purposes and does not provide investment advice. It is important to do your own research