It's a way for blockchain startups to raise capital and generate interest in their project before it officially goes live.
Presales typically occur before an Initial Coin Offering (ICO) or other public token sale. During a presale, investors usually crypto presales receive the new tokens at a discounted rate or with additional bonuses as an incentive for getting in early. These investors often include venture capitalists, angel investors, or retail investors looking to get ahead of the market.
Before launching a presale, the project team will usually release a whitepaper—a document outlining the project’s goals, technology, use case, tokenomics (how the tokens will be distributed and used), and roadmap. Interested investors evaluate this whitepaper to determine whether the project has strong potential.
In most cases, the presale is conducted through the project's own website or a launchpad platform. Investors are required to purchase the presale tokens using a cryptocurrency such as Ethereum (ETH), Binance Coin (BNB), or stablecoins like USDT.
The amount of tokens available during a presale is limited. Once the target amount of funds is raised, the presale closes. These tokens are usually locked or "vested" for a certain period, meaning early buyers can't sell them immediately after purchase. This lockup is designed to prevent immediate dumping of tokens, which could destabilize the token’s price.
Crypto presales help projects raise early funding for development, marketing, and operations. They also allow the team to gauge market interest and build a community around the project.
If you are contemplating playing the virtual currency game, but you haven’t heard of the cryptocurrency thing, the first question that would come to mind is Bitcoin!
