Pre-Sale Definition
A pre-sale in the context of cryptocurrency and blockchain refers to a period before an Initial Coin Offering (ICO) or token sale where certain investors are given the opportunity to purchase tokens or coins at a discounted rate. These investors typically include early supporters, friends, family, and private investors. The aim of a pre-sale is to raise initial funds for the development of the project.
Pre-Sale Key Points
- Pre-sale is a phase before the public ICO or token sale where selected investors can buy tokens at a discounted rate.
- It is often used to raise initial funds for the development of the project.
- Investors in the pre-sale phase are typically early supporters, friends, family, and private investors.
- The tokens or coins purchased during pre-sale are usually subject to a vesting period, meaning they cannot be sold immediately after the ICO.
What is a Pre-Sale?
A pre-sale is a fundraising mechanism in the cryptocurrency and blockchain industry. It is a phase before the public ICO or token sale where selected investors are given the opportunity to purchase tokens at a discounted rate. The purpose of a pre-sale is to raise initial funds for the development of the project.
Who Participates in a Pre-Sale?
The participants in a pre-sale are typically early supporters of the project, friends, family, and private investors. These are individuals or entities who believe in the potential of the project and are willing to invest in it at an early stage.
Where Does a Pre-Sale Take Place?
A pre-sale usually takes place on the project’s official website or on a platform dedicated to ICOs and token sales. It is conducted online, allowing investors from all around the world to participate.
When Does a Pre-Sale Happen?
A pre-sale happens before the public ICO or token sale. The exact timing can vary and is determined by the project’s team. It can last for a few days to a few weeks.
Why Do Projects Conduct a Pre-Sale?
Projects conduct a pre-sale to raise initial funds for the development of the project. By offering tokens at a discounted rate, they incentivize early investment. The funds raised during the pre-sale can be used for various purposes such as development, marketing, and operations.
How Does a Pre-Sale Work?
During a pre-sale, selected investors are given the opportunity to purchase tokens at a discounted rate. These tokens are usually subject to a vesting period, meaning they cannot be sold immediately after the ICO. The terms and conditions of the pre-sale, including the discount rate and the vesting period, are determined by the project’s team.
