- What is a Presale token?
- Main types of crypto pre sales
- Benefits of crypto pre sales
- Risks of token presales
- What are the best practices in conducting a cryptocurrency presale?
- Final Thoughts
A crypto Presale Token has multiple benefits for both project owners and investors. A presale token helps developers access funds to finance their project’s completion. Investors who buy a Presale token can make a kill if the project succeeds. Here, we explore the main benefits of crypto pre sales.
What is a Presale token?
Some blockchain project owners may decide to offer their tokens before the project is complete. Because this fundraising technique takes place before an ICO, it is known as cryptocurrency presale. Many investors keep searching for upcoming token sales because projects offer their coins at reduced prices. Here are the key objectives of conducting a Presale token event:
- Testing the market: Through this technique, project owners can gauge the interest level of the target audience. The feedback helps the development team improve its marketing campaigns and meet its fundraising goals.
- One beta introduction: A pre sale crypto targets a small group of investors. So, the process is more controllable than the main ICO. If there is a blunder, it can affect a smaller group, and the issue can be easily rectified. Furthermore, developers can discover bugs and fix them through a cryptocurrency presale before a public sale happens.
- Access private venture capital: A pre sale crypto helps a project access venture capital at discounted rates. The amount helps in project development before a public sale.
- Market survey: a critical reason for offering a presale token is to carry out a study that can enable project owners to understand the market’s needs. The survey data can help the project founders understand the intensity of marketing activities they need to deploy. If the project is complex, project owners need to educate the target audience. So, here content marketing should be of top priority.
Main types of crypto pre sales
There are two leading crypto token sales:
- Investor-only cryptocurrency presale: This is open to affluent investors ready to commit vast amounts of money to the project. These investors aim to reap massive profits if the value of tokens appreciates.
- Open-for-all token sales: They’re available for retail buyers wishing to buy a Presale token before it’s publicly launched.
Benefits of crypto pre sales
A Presale token event has multiple benefits for investors and project developers. It’s a process that you might not want to omit. So, suppose you lack the skills to conduct successful token sales. In that case, it’s advisable to hire token advisory solutions from experienced crypto experts. Besides advising you on conducting a token sale, such experts can also inform you on how to sell cryptoart. Here are the key benefits of a Presale token event:
Discounted token sales
A significant benefit of a Presale token event is that investors can purchase tokens at discounted rates. And this may attract many investors to your project. Occasionally, discounts can be as low as 50%.
Projects can use the amount raised to enhance marketing.
An ICO public sale has different requirements. The project might want to employ essential staff and contract a marketing agency that knows how to sell cryptoart. Through a Presale token event, project owners can access funds that they can use to popularize their projects. A project can hire an experienced marketing agency to deliver promotion services with the funds.
Understanding the market
A pre-sale enables the project to catch the attention of investors in the market. If the project is valuable, many investors might invest in it. When potential investors realize that the project has the backing of many in the market, they will readily invest in it.
At the pre-sale stage, your project can get much media coverage. Through extensive media coverage, your project can catch the attention of potential investors. So, during the public sale, your project will attract many investors. And this enables you to meet your funding objectives faster.
Risks of token presales
Presale token events have various downsides that project owners should note. A weak project may be prone to high volatility as private investors may decide to dump the tokens at the crowdsale stage. This happens especially when people realize that the underlying project doesn’t add any value to them.
Furthermore, there are legal concerns that regulatory bodies, like the SEC, might classify ERC20 as a security in the future. This might disrupt the practical expansion of these tokens.
What are the best practices in conducting a cryptocurrency presale?
Most token advisory experts will inform you that the objective of a Presale token event is to attract massive numbers of investors to finance your project. Developers appeal to investors by selling their tokens at discounted rates.
Here are the key ones:
- Present a complete product: this enables potential investors to try it out. If your project isn’t finished, it’s advisable to present a prototype.
- A professional project team: the team should be capable of delivering its mandate.
- Solid cybersecurity and governance measures: Investors are concerned about the safety of their investments. So, the project must explain the steps it takes to improve the security of its network.
- Regulatory and legal compliance: the presale and ICO should comply with the relevant laws in all the countries where it’s promoted.
- Evaluation of all communication platforms: this helps you to spot and deter probable illegal activities.
- Expert promotion campaigns: should include niche programs like bounties and targeted online promotions.
Besides the above-explored practices, you should be prepared to incur the Presale token marketing expenses, the creation of a safe platform, and the cost of meeting up with prospective buyers.
Also, projects need to ensure that they contact major crypto investors like hedge funds and venture capital. This move can further attract more institutional funders during the Presale token event.
Furthermore, the project needs to consider the best hard cap on their pre-sale. This helps you to evaluate whether the fundraising event met its objectives.
Crypto pre sales have become popular in the blockchain industry. These fundraising techniques have multiple perks for crypto projects and investors. So, it’s critical to strategize on how to conduct one to increase the chances of success. It would help if you worked closely with a token advisory agency to help you launch your pre-sale. Here, we’ve explored the main benefits of a cryptocurrency presale.