Many cryptocurrency projects engage in a practice known as pre-selling, wherein tokens are offered to interested parties at a specific price before an initial coin offering (ICO).
Knowing what is a crypto presale may help you catch early opportunities that may turn out to be big in the future.
In this article, we’ll discuss what is a crypto presale, how crypto presales work, popular presale token lists, and finally, the risks and benefits associated with crypto presales.
What is a crypto presale?
Imagine obtaining a pass to watch your favorite sports team play before anyone else. That’s the essence of a cryptocurrency presale. An early-stage fundraising technique used by blockchain projects to obtain initial funding during product development is a crypto presale, sometimes referred to as a token presale. Presales offer varying terms and access levels and can be either private or public.
If the presale events go according to plan and the digital currency is successful, this might be advantageous for investors and the development team in the long run as the project gets a good standing ground. Investors might purchase presale tokens that could be worth much more in the future, while the project’s developers would receive much-needed funding to complete the project.
Developers might also hold a pre-sale before the ICO to generate excitement and in the hopes of a price spike when the asset is made available to the general public.
How do crypto presales work?
Crypto launchpad platforms host the presales. On these platforms, a prospective investor links their cryptocurrency wallet and uses a predetermined list of approved cryptocurrencies to pay for the acquisition of the necessary quantity of project digital tokens.
The digital token is either airdropped to the investor’s wallet or made available for claim on the website later in the cryptocurrency project’s life, before the token’s introduction on cryptocurrency exchanges.
Blockchain smart contracts are typically used to securely handle funds raised during cryptocurrency presales. The project’s whitepaper should specify the specific cryptocurrency wallets (such as development, marketing, or liquidity pools) into which these smart contracts automatically distribute payments.
The project whitepaper typically explains the percentage that each wallet receives from the presale cash. Liquidity pools, marketing, and development are a few examples of project wallets. The wallets finance the project’s continuous operations and assist it in achieving its objectives.
Presale token list
Pre-sale event facilitation is being led by platforms like Gate.io, Huobi Prime, and Binance Launchpad. With different approaches like IEOs, they provide infrastructure support for new ventures to generate money, streamlining the fundraising process.
Here we present you with the top three upcoming presales in crypto, mainly taken from sources including coinsniper presale, ICO Drops, and CoinLaunch.
New token presale
1. Lightchain AI (LCAI)
Lightchain AI offers Proof of Intelligence (PoI), which it claims to be a ground-breaking consensus method that rewards nodes for carrying out worthwhile AI operations including optimization, inference, and model training. While preserving network security, Proof of Stake (PoI) encourages significant contributions to AI development, in contrast to more conventional consensus methods like Proof of Work (PoW) or Proof of Stake (PoS).
As per the official website of Lightchain AI, the project has already raised $19.5 million and it’s almost halfway through its presale phase. The current price of LCAI token as per the presale stands at $0.007125.
2. RabitiAI (RIAI)
According to the official whitepaper, RabitiAI combines the concepts of decentralized networks with the creative potential of cutting-edge technology. Using innovative, easily available tools and blockchain technology, our ecosystem empowers creators, businesses, and communities to create intelligent agents that attract audiences and validate projects.
11 hours remain till this presale round of RIAI token ends, with $341,281 raised so far, estimating the price of RIAI token at $0.025067. Users can take part in the presale by visiting the project’s official website.
3. PepeX
Hoping to build on the popularity of Pepe, PepeX claims to be an AI-powered launchpad where users can create tokens in five minutes, create new markets, and get access to upcoming crypto startups.
At the time of writing, PepeX has raised around $1.5 million out of $1.7 million, and the price is at $0.0243. After this stage ends, the next stage will have a price of $0.0255.
What is the best crypto presale?
This is a subjective matter, as many crypto projects may seem to be the next big thing when they are in the presale phase, however, real market conditions are different. Presale coins are marketed heavily and big promises are made in the start, however, not many projects are able to deliver on these promises.
Investors are therefore strongly encouraged to approach presale coins with a healthy dose of skepticism. Before investing any money, careful due diligence is essential. This includes investigating the development team, comprehending the use case, examining tokenomics, and determining the project’s long-term viability. Presale crypto project risks can also be reduced by diversifying investments and steering clear of emotionally charged choices.
Risks and benefits of crypto presales
It is important to remember that pre-selling carries some risk. Investors may end up with worthless tokens if a project fails and they are unable to profit from their investment. This also contributes to the possibility that the abundance of coins currently accessible to the general public may reduce the value of the ones they originally purchased when the actual ICO occurs.
However, investors who might sell off pre-sold tokens soon after launch and generate a healthy profit should be avoided by developers.
If early investors sell the coins they own at the first opportunity, it certainly doesn’t look good for a coin that just went through an ICO.
Are crypto presales safe?
Because frauds are common and many projects fail, cryptocurrency presales are typically regarded as high-risk investments. There is a considerable risk of loss even if some presales might yield sizable profits. Consequently, it is essential to conduct comprehensive research, including reviewing the project’s whitepaper, development team, and plan, prior to investing in any presale.
The frequency of fraud and scams is one of the main issues with cryptocurrency presales. Bad actors can easily construct phishing websites, make false claims, and then vanish with investors’ money when the presale ends with little control. The feasibility and token worth of a project can be greatly impacted by development delays, missing milestones, or subpar execution, even in initiatives that are legitimate.
Crypto presales can present thrilling opportunities, but in order to reduce risk and prevent becoming a victim of deceptive or fraudulent schemes, they should be handled carefully, with thorough research and a well-informed plan.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
